aep11krsp2013.htm



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


 


FORM 11-K

 
 


(Mark One)

[X]
                                     ANNUAL REPORT PURSUANT TO SECTION 15(d)
 
                                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the year ended December 31, 2013

OR

[  ]
                                   TRANSITION REPORT PURSUANT TO SECTION  15(d)
 
                                      OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                       to





AMERICAN ELECTRIC POWER SYSTEM
RETIREMENT SAVINGS PLAN
(Full title of the plan)

Commission File Number:  1 – 3525


AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
(Name of issuer of the securities held
pursuant to the plan and the address
of its principal executive office)


 
 

 




TABLE OF CONTENTS
 
Page
Number
     
Signatures
 
2
     
Report of Independent Registered Public Accounting Firm
 
3
     
Financial Statements
   
Statements of Net Assets Available for Benefits
 
4
Statements of Changes in Net Assets Available for Benefits
 
5
Notes to Financial Statements
 
6-18
     
Supplemental Schedules
   
Schedule of Assets (Held as of End of Year)
 
19-50
Schedule of Assets (Acquired and Disposed of Within Year)
 
51
Schedule of Nonexempt Transactions
 
52
     
Exhibits
   
Exhibit Index
 
53
Consent of Independent Registered Public Accounting Firm
 
54
 
 
1

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Benefits Finance Committee has duly caused this annual report to be signed by the undersigned thereunto duly authorized.

By:           /s/ Julia A. Sloat             
    Julia A. Sloat, Secretary
 
 

Date:  June 25, 2014

 
2

 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees and Participants of the American Electric Power System Retirement Savings Plan

We have audited the accompanying statements of net assets available for benefits of the American Electric Power System Retirement Savings Plan (the “Plan”) as of December 31, 2013 and 2012, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with 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 are free of material misstatement. The Plan 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 the Plan's 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. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2013 and 2012, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of (1) assets (held at end of year) as of December 31, 2013, (2) assets (acquired and disposed of within year), and (3) nonexempt transactions, are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These schedules are the responsibility of the Plan's management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 2013 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

/s/  Deloitte & Touche LLP

Columbus, Ohio
June 25, 2014

 
3

 

AMERICAN ELECTRIC POWER SYSTEM RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2013 and 2012

   
2013
 
2012
ASSETS
           
Participant Directed Investments at Fair Value
 
$
3,717,371,173 
 
$
3,268,509,701 
             
Notes Receivable from Participants
   
83,912,060 
   
79,060,932 
             
TOTAL ASSETS
   
3,801,283,233 
   
3,347,570,633 
             
Adjustment from Fair Value to Contract Value for Fully Benefit Responsive Wrap Contracts
   
(866,725)
   
(17,178,669)
             
NET ASSETS AVAILABLE FOR BENEFITS
 
$
3,800,416,508 
 
$
3,330,391,964 
             
See Notes to Financial Statements beginning on page 6.
           


 
4

 

AMERICAN ELECTRIC POWER SYSTEM RETIREMENT SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the Years Ended December 31, 2013 and 2012

   
2013
 
2012
INVESTMENT INCOME
           
Net Appreciation in Fair Value of Investments
 
$
496,359,189 
 
$
255,472,235 
Interest
   
9,537,438 
   
11,457,388 
Dividends
   
31,870,905 
   
33,392,767 
Total Investment Income
   
537,767,532 
   
300,322,390 
             
CONTRIBUTIONS
           
Participants
   
150,007,060 
   
147,216,242 
Employer
   
65,707,451 
   
65,123,578 
Total Contributions
   
215,714,511 
   
212,339,820 
 
DISTRIBUTIONS TO PARTICIPANTS
   
(280,061,184)
 
 
(198,027,366)
             
ADMINISTRATIVE AND MANAGEMENT FEES
           
Professional Fees
   
(670,734)
   
(697,438)
Investment Advisory and Management Fees
   
(5,975,010)
   
(5,339,996)
Other Fees
   
(524,779)
   
(482,541)
Total Administrative and Management Fees
   
(7,170,523)
   
(6,519,975)
             
INTEREST INCOME ON NOTES RECEIVABLE FROM
PARTICIPANTS
   
3,774,208 
   
3,449,226 
             
TRANSFERS INTO PLAN
   
   
152,008 
             
INCREASE IN NET ASSETS
   
470,024,544 
   
311,716,103 
             
NET ASSETS AVAILABLE FOR BENEFITS BEGINNING OF YEAR
   
3,330,391,964 
   
3,018,675,861 
             
NET ASSETS AVAILABLE FOR BENEFITS END OF YEAR
 
$
3,800,416,508 
 
$
3,330,391,964 
             
See Notes to Financial Statements beginning on page 6.
           

 
5

 

AMERICAN ELECTRIC POWER SYSTEM RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
For the Years Ended December 31, 2013 and 2012
 
1.   PLAN DESCRIPTION
 
The following description of the American Electric Power System Retirement Savings Plan (Plan) is provided for general information purposes only.  Participants should refer to the Plan documents for a more complete description of the Plan’s information.

General

The Plan is a defined contribution plan that became effective and commenced operations on January 1, 1978.  The Plan covers eligible regularly-scheduled full-time and part-time employees of the participating subsidiaries of American Electric Power Company, Inc. (AEP or the Company).  American Electric Power Service Corporation (AEPSC) is the plan administrator (Plan Administrator) and plan sponsor (Plan Sponsor).  AEPSC is a wholly-owned subsidiary of AEP.  JPMorgan Chase Bank N.A. is the custodian and trustee and JPMorgan Retirement Plan Services LLC is the record keeper with respect to the Plan, collectively (JPMorgan or the Trustee).

Contributions

Newly eligible employees are automatically enrolled in the Plan with a 3% pretax deferral.  Employees may opt out of the automatic enrollment or revise their elections within a reasonable period of time after they are notified of their right not to have such pretax deferrals made on their behalf (or to have such pretax deferrals made at a different percentage) and how their account will be invested in the absence of their making an investment election.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).  Generally, eligible employees participating in the Plan may make contributions (pretax, after-tax or Roth 401(k) contributions) in 1% increments up to 50% of their eligible pay (within Internal Revenue Service (IRS) limits).  Participants who are age 50 and older are able to contribute additional pretax or Roth 401(k) amounts as catch-up contributions.  The catch-up contribution limit was $5,500 for both 2013 and 2012.  An employee who is eligible to participate in the Plan also may roll eligible retirement benefits into the Plan. The Company contributes to the Plan, on behalf of each participant, an amount equal to 100% of the participant’s non-rollover contributions up to 1% of the participant’s eligible compensation for each payroll period, plus 70% of the participant’s contributions for the next 5% of the participant’s eligible compensation for each payroll period, subject to certain limitations.  All contributions that are withheld from a participant’s pay or are made by the Company are deposited in the American Electric Power System Retirement Savings Plan Trust after each pay period.  The Plan, in a manner consistent with the requirements under section 401 of the Internal Revenue Code (IRC), restricts the amount that certain participants who are deemed highly compensated may contribute to the Plan, provided that it is AEPSC’s intent that the Plan include a “qualified automatic contribution arrangement” (as defined in Section 401(k)(13) of the IRC) effective January 1, 2009, such that only the after-tax contributions made by such highly compensated participants may be subject to such restrictions.

On November 1, 2012, assets of $152,008 were transferred into the Plan in connection with the merger of the terminated AEP Ohio Coal, LLC, Employee Savings Plan into the Plan.  The merger of the plans was necessary under applicable tax regulations that preclude the distribution of amounts from a terminated plan to participants who have not consented to such a distribution to the extent a related employer maintains another individual account retirement plan to which such amounts may be transferred.

Investments

The investment options offered by the Plan are a series of separately managed accounts, interests in commingled and collective trusts, the AEP Stock Fund and self-directed mutual fund brokerage accounts.  Affiliates of JPMorgan provide custody, trustee, recordkeeping and other services with regard to investments.

 
6

 
Notes Receivable from Participants

Participants may borrow from their savings plan accounts a minimum of $1,000 but no more than the lesser of $50,000 or 50% of their account balance.  Loan terms range from 12 months to 60 months (or up to 180 months for certain residential loans), or any monthly increment in-between.  Interest rates, fixed for the life of the loan, are calculated by adding 1% to the prime rate, as reported in the Wall Street Journal.  For loans taken before July 1, 2006, the interest rate was in effect as of the first business day of the calendar quarter in which the loan was taken.  For loans taken after July 1, 2006, the interest rate is in effect as of the first business day of the calendar month in which the loan is taken.  Active employees repay principal and interest payments through payroll deductions.

Participant loans and the accrued interest are collateralized by the account balance, and upon default, the outstanding balance is subject to income taxes and possible tax penalty.

Participant Accounts

Individual accounts are maintained for each Plan participant.  Each participant’s account is credited with the participant’s contributions, the Company’s matching contributions and investment earnings and losses and charged with benefit payments and allocations of Plan expenses.  The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

Participants may transfer the value of their cumulative contributions, in any whole percentage or dollar amount, among investments, and change their investment elections on a daily basis.  Participants may change their payroll contribution elections coinciding with the Company’s payroll periods.

Vesting and Distribution

Participants are immediately vested in their pretax, after-tax, Roth 401(k) and the Company matching contributions, including earnings thereon.  Excluding participants’ pretax and Roth 401(k) contributions and post-2008 Company matching contributions, all participants may make an unlimited number of withdrawals of their interest in the Plan, including their pre-2009 Company matching contributions.  Pretax and Roth 401(k) contributions are eligible for withdrawal by participants only after age 59-1/2, or earlier upon hardship (as defined by the Plan) or following termination of employment.  Post-2008 Company matching contributions are eligible for withdrawal by participants only after age 59-1/2, or earlier following earlier termination of employment, but not upon hardship.

The AEP Stock Fund, a Plan investment option, is an Employee Stock Ownership Plan.  As a result, participants can elect to have dividends generated from their AEP Stock Fund holdings paid out in cash, rather than automatically reinvested in the fund.  The dividend payouts are made periodically (at least annually) and are treated as ordinary income to the participants for tax purposes.
 
2.   ACCOUNTING POLICIES
 
Basis of Accounting

The accompanying financial statements are prepared on an accrual basis of accounting, in conformity with accounting principles generally accepted in the United States of America (GAAP).

Investment Valuation and Income Recognition

Participants direct the investment of their contributions into various investment options offered by the Plan.  Investments are reported in the Statements of Net Assets Available for Benefits at fair value while benefit responsive investment contracts are reported at fair value with an adjustment to contract value.  The Statement of Changes in Net Assets Available for Benefits is prepared using contract value basis.  Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

 
7

 
Purchases and sales of securities have been recorded on a trade-date basis.  Net appreciation includes the Plan’s gains or losses on investments bought or sold as well as held throughout the year.  Interest income is recorded on an accrual basis.  Dividends are recorded on the ex-dividend date.  These amounts are reinvested by the Trustee in the funds that generated such income with the exception of the AEP Stock Fund, which pays or reinvests dividends at the direction of each participant.

Notes Receivable from Participants

Notes Receivable from Participants are measured at their unpaid principal balance plus any accrued but unpaid interest.  Delinquent participant loans are not recorded as distributions until actually distributed based on the terms of the Plan document.

Administrative and Management Fees

Administrative and Management Fees incurred relating to JPMorgan during 2013 and 2012 totaled $2,274,351 and $2,529,547, respectively.  The Plan directly pays for administrative, recordkeeping and management fees.

Distributions to Participants

Distributions to participants are recorded when paid.  There were no material amounts of distributions due to participants who requested distributions from the Plan as of December 31, 2013 and 2012.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein and disclosure of contingent assets.  Actual results could differ from the estimates.

Fair Value Measurements of Assets

The accounting guidance for “Fair Value Measurements and Disclosures” establishes a fair value hierarchy that prioritizes the inputs used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  AEPSC’s staff independently monitors valuation policies and procedures and provides members of the Benefits Finance Committee (BFC) and its Investment Subcommittee (IC), which was formed by amendment to the BFC’s Bylaws on January 9, 2013, various monthly and quarterly reports, regarding compliance with policies and procedures.  The BFC consists of AEPSC’s Chief Financial Officer, Treasurer, Chief Administrative Officer, Chief Risk Officer, Executive Vice President General Counsel in addition to the President of Energy Supply.  The IC consists of AEPSC’s Treasurer, Chief Risk Officer, Director of Trusts and Investments and Manager of Corporate Finance.
 
The Plan utilizes its Trustee’s external pricing service to estimate the fair value of the underlying investments held in the Plan.  The Plan’s investment managers review and validate the prices utilized by the Trustee to determine fair value.  The Company performs its own valuation testing to verify the fair values of the securities, in part by reviewing audit reports of the Trustee’s operating controls and valuation processes.

Assets in the Plan are classified using the following methods.  Equities are classified as Level 1 holdings if they are actively traded on exchanges.  Items classified as Level 1 are investments in money market funds, fixed income and equity mutual funds and domestic equity securities.  They are valued based on observable inputs primarily unadjusted quoted prices in active markets for identical assets.  Items classified as Level 2 are primarily investments in individual fixed income securities and cash equivalents funds.  Fixed income securities do not trade on an exchange and do not have an official closing price but their valuation inputs are based on observable market data.

The Trustee uses multiple pricing vendors for the assets held in trust.  The Trustee’s pricing vendors calculate bond valuations using financial models and matrices.  The models use observable inputs including yields on benchmark securities, quotes by securities brokers, rating agency actions, discounts or premiums on securities compared to par prices, changes in yields for U.S. Treasury securities, corporate actions by bond issuers, prepayment schedules and
 
 
8

 
histories, economic events and, for certain securities, adjustments to yields to reflect changes in the rate of inflation.  Cash equivalent funds are held to provide liquidity and meet short term cash needs.  The underlying holdings in the cash funds consist of commercial paper, certificates of deposit, treasury bills, and other short-term debt securities.  Short-term debt securities are valued based on observable market data by the trust banks pricing vendor.  Other securities with model-derived valuation inputs that are observable are also classified as Level 2 investments.  Investments with unobservable valuation inputs are classified as Level 3 investments.  Plan assets included in Level 3 are primarily real estate and emerging market investments that are valued using methods requiring judgment, including appraisals.

Equities and Registered Investment Companies are valued based on observable inputs, primarily unadjusted quoted prices in active markets for identical assets.

Investment Descriptions

Common Collective Trusts and the Managed Income Fund are valued at the net asset value per share (NAV).  The basis of the reported NAV is the total fair value of all underlying holdings less expenses and liabilities.  The value of each unit is determined by dividing the net asset value of the fund by the number of applicable units outstanding on the valuation date.  These investments are categorized as Level 2 if they can be redeemed at the NAV price.  The JPMorgan Strategic Property Fund has been categorized as a Level 3 investment since the underlying holdings are diversified real estate assets that are difficult to value and rely on unobservable inputs to measure fair value.  The JPMorgan Emerging Markets Fund has been classified as a Level 3 investment since the majority of the holdings are equity securities traded on foreign stock exchanges in emerging nations that have limited liquidity.

JPMorgan Liquidity Fund

The objective of this fund is to provide liquidity and meet short-term cash needs while preserving principal.  The underlying holdings in the fund are investment grade money market instruments including commercial paper, certificates of deposit, treasury bills and other types of investment grade short-term debt securities.  The fund is valued each business day.

JPMorgan US Treasury Plus Money Market Fund

The objective of this fund is to provide liquidity and meet short-term cash needs while preserving principal.  The underlying holdings in the fund include U.S. Treasury obligations, including Treasury bills, bonds and notes and other obligations issued or guaranteed by the U.S. Treasury, and repurchase agreements fully collateralized by U.S. Treasury securities.

Mellon Capital Small Cap Stock Index Fund

The objective of this fund is to track the performance of the Russell 2000 Index.  The underlying equity holdings of this fund are actively traded on major domestic stock exchanges and have readily available market quotes.

Mellon Capital Stock Index Fund

The objective of this fund is to track the performance of the S&P 500 Index.  The underlying equity holdings of this fund are actively traded on major domestic stock exchanges and have readily available market quotes.

Mellon Capital International Stock Index Fund

The objective of this fund is to track the performance of the MSCI Europe, Australia, and Far East (MSCI EAFE) Index.  The underlying equity holdings of this fund are actively traded on the major non-U.S stock exchanges and have readily available market quotes.

JPMorgan US Real Estate Securities Fund

The objective of this fund is to exceed the performance of the MSCI Real Estate Investment Trust (MSCI U.S.
 
 
9

 
REIT) Index.  The underlying real estate investment trust equity holdings of this fund are actively traded on the major domestic stock exchanges and have readily available market quotes.
 
Mellon Capital Aggregate Bond Index Fund

The objective of this fund is to track the performance of the Barclay’s Capital U.S. Aggregate Bond Index.  Fixed income securities do not trade on an exchange and do not have an official closing price.

Mellon Capital Treasury Inflation-Protected Securities Fund

The objective of this fund is to track the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities Index.  Treasury Inflation-Protected Securities are backed by the U.S. government and protect investors from the effects of inflation.  The securities are not actively traded on exchanges and do not have an official closing price.

Metlife Separate Account No. 690

The objective of the fund is to exceed the performance of the Barclays Capital 1-3 year Government/Credit Index.  The fund seeks to preserve principal and an above average level of income with the goal of minimizing overall portfolio risk.  Fixed income securities do not trade on an exchange and do not have an official closing price.

Wells Fargo Fixed Income Fund N

The objective of the fund is to exceed the performance of the Barclays Capital Intermediate Government/Credit Index.  The fund seeks to preserve principal and an above average level of income with the goal of minimizing overall portfolio risk.  Fixed income securities do not trade on an exchange and do not have an official closing price.

JPMorgan Strategic Property Fund

The objective of this fund is to exceed the performance of the National Council of Real Estate Investment Fiduciaries (NCREIF) Property Index.  The underlying holdings in the fund are diversified real estate assets.  This diversified fund consists of multiple properties and no single asset, tenant or location has undue influence over the fund’s value or performance.   The fund’s diversified holdings help mitigate the risk of default and concentration risk.

JPMorgan Emerging Markets Fund

The objective of this fund is to exceed the performance of the MSCI Emerging Markets (MSCI EM) Free Index.  The majority of the underlying holdings of this fund are traded on foreign stock exchanges in emerging markets.  The securities in these economies are typically less efficient and less liquid than those in developed markets.
 
3.   PLAN TERMINATION
 
Although it has not expressed any intent to do so, AEPSC has the right to take such actions as will allow contributions to the Plan to be discontinued at any time and to terminate the Plan subject to the provisions of ERISA.  In the event of Plan termination, participants remain 100 percent vested in their accounts.
 
4.   INVESTMENT CONTRACTS
 
The Managed Income Fund provides a stable value investment option that includes fully benefit-responsive wrap contracts which assure the book value of investments for plan participants.  The fund’s underlying assets, which are held in a trust, utilize wrap contracts issued by four financial institutions as of December 31, 2013 and 2012.  The contracts provide that participants execute plan transactions at contract value.  Contract value represents contributions made to the fund, plus credited interest, less participant withdrawals, without regard to changes in the fair value of the investments and securities underlying the fund.  The rates for crediting interest are reset periodically based on market rates of other similar investments, the current yield of the underlying investments and the spread
 
 
10

 
between the market value and contract value.  The interest crediting rate cannot be less than 0%.  Certain events initiated by the Plan Sponsor, such as plan termination or a plan merger, would limit the ability of the Plan to administer participant-level transactions at contract value or may allow for the termination of the wrap contract at market value, rather than contract value.

The Plan Sponsor does not believe that any events that may limit the ability of the plan to transact at contract value are probable as of December 31, 2013 or the date these financial statements are issued.

During the year ended December 31, 2013, the average yield based on underlying earnings and the average yield based on interest credited to participants were 1.33% and 1.22%, respectively.  During the year ended December 31, 2012, the average yield based on underlying earnings and the average yield based on interest credited to participants were 0.83% and 1.49%, respectively.

5.   INVESTMENTS EXCEEDING FIVE PERCENT OF THE PLAN’S NET ASSETS

Investments exceeding five percent of the Plan’s net assets as of December 31, 2013 and 2012 were as follows:

   
December 31,
   
2013
 
2012
American Electric Power Company, Inc. Common Stock
 
$
294,612,643 
 
$
282,978,430 
Mellon Capital Aggregate Bond Index Fund
   
454,335,541 
   
464,002,734 
Mellon Capital Stock Index Fund
   
637,979,183 
   
481,200,145 
Mellon Capital International Stock Index Fund
   
    382,529,284 
   
     305,480,758 
Mellon Capital Small Cap Stock Index Fund (a)
   
218,730,345 
   
163,278,652 

(a) Investment was less than five percent of the Plan’s net assets as of December 31, 2012.

6.   NET APPRECIATION OF INVESTMENTS

During 2013 and 2012, the Plan's investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:
   
Years Ended December 31,
   
2013
 
2012
American Electric Power Company, Inc. Common Stock
 
$
27,559,707 
 
$
9,617,491 
Common/Collective Trusts
   
281,942,154 
   
165,034,728 
Corporate Stock
   
175,717,078 
   
       70,090,069 
Fixed Income Securities
   
(2,343,892)
   
964,770 
Registered Investment Companies
   
13,484,142 
   
         9,765,177 
Net Appreciation in Fair Value of Investments
 
$
496,359,189 
 
$
255,472,235 
 
7.   PARTY-IN-INTEREST TRANSACTIONS
 
Certain transactions involving the Plan and its assets involved parties in interest with respect to the Plan, but those transactions were not prohibited transactions under ERISA because of the applicability of one or more exemptions.  The exempt party-in-interest transactions involving the Plan included the following:  JPMorgan Chase Bank, N.A. has been acting as trustee and custodian under the Plan, while its affiliates have been acting as (a) investment manager for a number of the Plan’s investment options, (b) the Plan’s record keeper and (c) investment advisor or investment manager for a number of plan participants with respect to the amounts held in their Plan accounts.

As of December 31, 2013 and 2012, the Plan held 6,303,223 and 6,630,235 shares, respectively, of common stock of American Electric Power Company, Inc., the Plan Sponsor, with a cost basis of $228,985,169 and $234,634,292, respectively.  During the years ended December 31, 2013 and 2012, the Plan recorded dividend income of $12,470,399 and $13,252,757, respectively, related to its investment in that common stock.

The Plan entered into a non-exempt prohibited transaction when it made two overpayments to an investment manager.  ERISA Section 406(a)(1)(D) prohibits the use of plan assets by, or transfer of plan assets to, a party in
 
 
11

 
interest (such as a fiduciary investment manager). Although an exemption under ERISA 408(b)(2) generally is applicable to contracts with parties (such as investment managers) for services necessary for the operation of a plan where no more than reasonable compensation is paid therefor, the described payments represent the amount invoiced and paid by the Plan in excess of the amount  required by the contract as amended.  The investment manager had just agreed in writing to temporary reduction of its fees, but its subsequent invoices were prepared without that agreed reduction, resulting in the effective overcharge for investment management fees. Immediately upon discovery of the overpayment in August 2013, the Plan secured from the investment manager a repayment of the excess amounts plus lost earnings thereon.  Therefore, the Company has completed the steps to remediate the transaction.

The Plan entered into an additional non-exempt prohibited transaction when it made a payment for services not rendered to the Plan.  ERISA Section 406(a)(1)(D) prohibits the use of plan assets by, or transfer of plan assets to, a party in interest (such as an employer whose employees are covered by the plan). The described payments represent amounts invoiced to the Company for services that were not rendered to the Plan.  Immediately upon discovery of the overpayment in August 2013, the Company reimbursed the Plan plus lost interest thereon.  Therefore, the Company has completed the steps to remediate the transaction.

 
12

 
8.   FAIR VALUE MEASUREMENTS

For a discussion of fair value accounting and the classification of assets within the fair value hierarchy, see the “Fair Value Measurements of Assets” section of Note 2.

Plan Assets within the Fair Value Hierarchy as of December 31, 2013
 
     
    Level 1   Level 2   Level 3   Total
Equities                        
Corporate Stocks
 
$
643,479,327 
 
$
 
$
 
$
643,479,327 
AEP Stock
   
294,612,643 
   
   
   
294,612,643 
Subtotal Equities
   
938,091,970 
   
   
   
938,091,970 
                         
Fixed Income
                       
Government Bonds
   
   
99,954,594 
   
   
99,954,594 
Corporate Debt Securities
   
   
173,612,943 
   
   
173,612,943 
Mortgage Backed Securities
   
   
171,693,244 
   
   
171,693,244 
Subtotal Fixed Income
   
   
445,260,781 
   
   
445,260,781 
                         
Common/Collective Trusts
                       
JPMorgan Liquidity Fund
   
   
20,014,690 
   
   
20,014,690 
JPMorgan US Treasury Plus Money Market Fund
   
   
78,372,654 
   
   
78,372,654 
Mellon Capital Small Cap Stock Index Fund
   
   
218,730,345 
   
   
218,730,345 
Mellon Capital Stock Index Fund
   
   
637,979,183 
   
   
637,979,183 
Mellon Capital International Stock Index Fund
   
   
382,529,284 
   
   
382,529,284 
JPMorgan US Real Estate Securities Fund
   
   
21,321,034 
   
   
21,321,034 
Mellon Capital Aggregate Bond Index Fund
   
   
454,335,541 
   
   
454,335,541 
Mellon Capital Treasury Inflation-Protected
     Securities Fund
   
   
14,878,293 
   
   
14,878,293 
Metlife Separate Account No. 690
   
   
160,604,028 
   
   
160,604,028 
Wells Fargo Fixed Income Fund N
   
   
122,945,600 
   
   
122,945,600 
JPMorgan Strategic Property Fund
   
   
   
37,903,552 
   
37,903,552 
JPMorgan Emerging Markets Fund
   
   
   
21,301,049 
   
21,301,049 
Subtotal Common/Collective Trusts
   
   
2,111,710,652 
   
59,204,601 
   
2,170,915,253 
                         
Registered Investment Companies
   
156,155,678
   
   
   
156,155,678 
Cash Equivalents
   
   
16,534,243 
   
   
16,534,243 
Accrued Items and Unsettled Trades
   
(422,240)
   
(9,164,512)
   
   
(9,586,752)
                         
Total Assets Reflecting Investments at Fair Value
 
$
1,093,825,408 
 
$
2,564,341,164 
 
$
59,204,601 
 
$
3,717,371,173 


 
13

 


Plan Assets within the Fair Value Hierarchy as of December 31, 2012
 
   
Level 1
 
Level 2
 
Level 3
 
Total
Equities
   
Corporate Stocks
 
$
494,382,946 
 
$
 
$
 
$
494,382,946 
AEP Stock
   
282,978,430 
   
   
   
282,978,430 
Subtotal Equities
   
777,361,376 
   
   
   
777,361,376 
                         
Fixed Income
                       
Government Bonds
   
   
105,989,433 
   
   
105,989,433 
Corporate Debt Securities
   
   
159,049,975 
   
   
159,049,975 
Mortgage Backed Securities
   
   
204,001,237 
   
   
204,001,237 
Subtotal Fixed Income
   
   
469,040,645 
   
   
469,040,645 
                         
Common/Collective Trusts
                       
JPMorgan Liquidity Fund
   
   
14,005,564 
   
   
14,005,564 
JPMorgan US Treasury Plus Money Market Fund
   
                  - 
   
  109,448,923 
   
   
     109,448,923 
Mellon Capital Small Cap Stock Index Fund
   
   
163,278,652 
   
   
163,278,652 
Mellon Capital Stock Index Fund
   
   
481,200,145 
   
   
481,200,145 
Mellon Capital International Stock Index Fund
   
   
305,480,758 
   
   
305,480,758 
JPMorgan US Real Estate Securities Fund
   
   
17,816,967 
   
   
17,816,967 
Mellon Capital Aggregate Bond Index Fund
   
   
464,002,734 
   
   
464,002,734 
Mellon Capital Treasury Inflation-Protected
     Securities Fund
   
   
14,704,660 
   
   
14,704,660 
Metlife Separate Account No. 690
   
   
  150,986,394 
   
   
     150,986,394 
Wells Fargo Fixed Income Fund N
   
   
  125,425,281 
   
   
     125,425,281 
JPMorgan Strategic Property Fund
   
   
   
31,791,671 
   
31,791,671 
JPMorgan Emerging Markets Fund
   
   
   
18,068,713 
   
18,068,713 
Subtotal Common/Collective Trusts
   
   
1,846,350,078 
   
49,860,384 
   
1,896,210,462 
                         
Registered Investment Companies
   
109,253,314 
   
   
   
109,253,314 
Cash Equivalents
   
   
19,864,466 
   
   
19,864,466 
Accrued Items and Unsettled Trades
   
545,362 
   
(3,765,924)
   
   
(3,220,562)
                         
Total Assets Reflecting Investments at Fair Value
 
$
887,160,052 
 
$
2,331,489,265 
 
$
49,860,384 
 
$
3,268,509,701 
 
 
14

 
The following tables set forth a summary of the Plan's investments with a reported Net Asset Value as of December 31, 2013 and 2012:

Fair Value Estimated Using Net Asset Value per Share as of December 31, 2013
 
   
Fair Value
 
Redemption Frequency
(If currently eligible)
 
Redemption Notice Period
JPMorgan Liquidity Fund
 
$
20,014,690 
 
Daily
 
1 Day
JPMorgan US Treasury Plus Money Market Fund
   
78,372,654 
 
Daily
 
Trade Date + 0
Mellon Capital Small Cap Stock Index Fund
   
218,730,345 
 
Daily
 
Trade Date + 1
Mellon Capital Stock Index Fund
   
637,979,183 
 
Daily
 
Trade Date + 1
Mellon Capital International Stock Index Fund
   
382,529,284 
 
Daily
 
Trade Date + 1
JPMorgan US Real Estate Securities Fund
   
21,321,034 
 
Daily
 
1 Day
Mellon Capital Aggregate Bond Index Fund
   
454,335,541 
 
Daily
 
Trade Date + 1
Mellon Capital Treasury Inflation-Protected
    Securities Fund
   
14,878,293 
 
Daily
 
Trade Date + 1
Metlife Separate Account No. 690
   
160,604,028 
 
Monthly
 
1 Month
Wells Fargo Fixed Income Fund N
   
122,945,600 
 
Monthly
 
1 Month
JPMorgan Strategic Property Fund
   
37,903,552 
 
Quarterly
 
45 Days
JPMorgan Emerging Markets Fund
   
21,301,049 
 
Daily
 
1 Day
Total Assets
 
$
2,170,915,253 
       

Fair Value Estimated Using Net Asset Value per Share as of December 31, 2012
 
   
Fair Value
 
Redemption Frequency
(If currently eligible)
 
Redemption Notice Period
JPMorgan Liquidity Fund
 
$
14,005,564 
 
Daily
 
1 Day
JPMorgan US Treasury Plus Money Market Fund
   
         109,448,923 
 
Daily
 
Trade Date + 0
Mellon Capital Small Cap Stock Index Fund
   
163,278,652 
 
Daily
 
Trade Date + 1
Mellon Capital Stock Index Fund
   
481,200,145 
 
Daily
 
Trade Date + 1
Mellon Capital International Stock Index Fund
   
305,480,758 
 
Daily
 
Trade Date + 1
JPMorgan US Real Estate Securities Fund
   
17,816,967 
 
Daily
 
1 Day
Mellon Capital Aggregate Bond Index Fund
   
464,002,734 
 
Daily
 
Trade Date + 1
Mellon Capital Treasury Inflation-Protected
    Securities Fund
   
14,704,660 
 
Daily
 
Trade Date + 1
Metlife Separate Account No. 690
   
150,986,394 
 
Monthly
 
1 Month
Wells Fargo Fixed Income Fund N
   
125,425,281 
 
Monthly
 
1 Month
JPMorgan Strategic Property Fund
   
31,791,671 
 
Quarterly
 
45 Days
JPMorgan Emerging Markets Fund
   
           18,068,713 
 
Daily
 
1 Day
Total Assets
 
$
1,896,210,462 
       

 
15

 
There have been no transfers between Level 1, Level 2, and Level 3 during the years ended December 31, 2013 and 2012.

The following tables set forth a reconciliation of changes in the fair value of investments classified as Level 3 in the fair value hierarchy.

Changes in Fair Value Measurements for the Year Ended December 31, 2013
 
   
JPMorgan
Strategic
Property
Fund
 
JPMorgan
Emerging
Markets
Fund
 
Total
Balance at Beginning of Year
 
$
31,791,671 
 
$
18,068,713 
 
$
49,860,384 
                   
Realized Gains
   
   
373,032 
   
373,032 
Unrealized Gains
   
5,131,893 
   
(1,020,696)
   
4,111,197 
Purchases
   
979,988 
   
5,475,000 
   
6,454,988 
Sales
   
   
(1,595,000)
   
(1,595,000)
Issuances
   
   
   
Settlements
   
   
   
Balance at End of Year
 
$
37,903,552 
 
$
21,301,049 
 
$
59,204,601 

Changes in Fair Value Measurements for the Year Ended December 31, 2012
   
   
JPMorgan
Strategic
Property
Fund
 
JPMorgan
Emerging
Markets
Fund
 
Wrap
Contracts
 
Total
Balance at Beginning of Year
 
$
34,096,695 
 
$
15,195,847 
 
$
456,104 
 
$
49,748,646 
                         
Realized Gains (Losses)
   
(1,030,618)
   
520,253 
   
(456,104)
   
(966,469)
Unrealized Gains (Losses)
   
(6,980,456)
   
2,274,613 
   
   
(4,705,843)
Purchases
   
(1,513,950)
   
(1,825,000)
   
   
(3,338,950)
Sales
   
7,220,000 
   
1,903,000 
   
   
9,123,000 
Issuances
   
   
   
   
Settlements
   
   
   
   
Balance at End of Year
 
$
31,791,671 
 
$
18,068,713 
 
$
 
$
49,860,384 
 
9.   RISK AND UNCERTAINTIES
 
The Plan utilizes various investment instruments, including common stock, bonds, commingled funds and investment contracts.  Investment securities are exposed to various risks, such as interest rate, credit and market volatility.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the amounts reported in the financial statements.

 
16

 
10.   FEDERAL INCOME TAX

The IRS has issued a favorable determination letter dated September 24, 2013 with respect to the Plan.  A favorable determination letter indicates that, in the opinion of the IRS, the terms of that the Plan meets the requirements of Section 401(a) of the IRC, and thereby recognizes the exempt status of the Plan’s trust pursuant to Section 501(a) of the IRC.

The Plan has not been amended subsequent to the issuance of that IRS determination letter.  Plan management believes that the Plan is currently designed and operated in compliance with the applicable requirements of the IRC and that the Plan’s trust continues to be tax-exempt.  Therefore, no provision for income taxes has been included in the Plan’s financial statements.

GAAP requires Plan management to evaluate tax positions taken by the Plan and to recognize a tax liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2013 and 2012, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions. However, there are currently no audits for any tax periods in progress.  The Plan Administrator believes it is no longer subject to income tax examinations for years prior to 2010.
 
11.   RECONCILIATION OF FINANCIAL STATEMENTS TO THE FORM 5500
 
Due to changes in the IRS Form 5500 filing requirements, the income statement in Schedule H, Part II, is now required to separately report certain deemed distributions of participant loans, whether or not those loans may otherwise remain collectible and would still be (and are) reflected as assets on the accompanying financial statements, which are prepared on the accrual basis of accounting.  Because loans deemed distributed are no longer to be carried as assets of the Plan unless and until the participant actually undertakes the repayment, amounts reported on Schedule H as Participant Loans as of the beginning and ending of the year were adjusted so that prospectively the amounts reported on Schedule H, Part I, Line 1c(8), columns (a) and (b) are in conformity with the Form 5500 filing requirements, but differ from those reported in the accompanying financial statements.

   
January 1,
Participant Loans – Schedule H, Part I, Line 1c(8), Column (a)
 
2013
 
2012
Beginning Balance per Financial Statements
 
$
79,060,932 
 
$
74,987,631 
Less: Loans Deemed Distributed with No Post-Default Payments
   
(2,053,161)
   
(1,695,638)
Balance Reported on Form 5500
 
$
77,007,771 
 
$
73,291,993 

   
December 31,
Participant Loans – Schedule H, Part I, Line 1c(8), Column (b)
 
2013
 
2012
Ending Balance per Financial Statements
 
$
83,912,060 
 
$
79,060,932 
   Less: Assets and Activity Related to Loans Deemed Distributed with No Post-Default Payments
   
(2,135,738)
   
(2,053,161)
Balance Reported on Form 5500
 
$
81,776,322 
 
$
77,007,771 
 
 
17

 
As a result of the changes to Form 5500, beginning and ending Net Assets Available for Benefits as well as Increase (Decrease) in Net Assets will differ between reported amounts on the Financial Statements and Form 5500 as follows:

   
January 1,
Net Assets – Schedule H, Part I, Line 1l, Column (a)
 
2013
 
2012
Beginning Balance per Financial Statements
 
$
3,330,391,964 
 
$
3,018,675,861 
Plus: Adjustment from Contract Value to Fair Value
   
17,178,669 
   
         6,071,315 
Less: Loans Deemed Distributed with No Post-Default Payments
   
(2,053,161)
   
(1,695,638)
Beginning Balance Reported on Form 5500
 
$
3,345,517,472 
 
$
3,023,051,538 

   
December 31,
Net Assets – Schedule H, Part I, Line 1l, Column (b)
 
2013
 
2012
Ending Balance per Financial Statements
 
$
3,800,416,508 
 
$
3,330,391,964 
   Plus: Adjustment from Contract Value to Fair Value
   
866,725 
   
17,178,669 
   Less: Assets and Activity Related to Loans Deemed Distributed with No Post-Default Payments
   
(2,135,738)
   
(2,053,161)
Balance Reported on Form 5500
 
$
3,799,147,495 
 
$
3,345,517,472 

   
December 31,
Increase in Net Assets – Schedule H, Part II, Line 2k
 
2013
 
2012
Per Financial Statements
 
$
470,024,544 
 
$
311,716,103 
Plus (Less): Change in Contract Value to Fair Value
   
  (16,311,944)
   
11,107,354 
Less: Loans Deemed Distributed
   
(82,577)
   
(357,523)
Reported on Form 5500
 
$
453,630,023 
 
$
322,465,934 

 
18

 
AMERICAN ELECTRIC POWER SYSTEM RETIREMENT SAVINGS PLAN
PLAN #002 EIN #13-4922641
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2013
           
   
INVESTMENT CONTRACTS:
     
   
Stable Value Wrap
 
$
                           -
   
  Prudential Insurance Company of America, 1.30%
     
   
  variable annual yield  (1.30% at December 31, 2013)
     
   
  with an indeterminate maturity date
     
   
Stable Value Wrap
   
                           -
   
  Met Life Inc.
     
   
  variable annual yield (0.87% at December 31, 2013)
     
   
  with an indeterminate maturity date
     
   
Stable Value Wrap
   
                           -
   
  ING Life Ins. Co.
     
   
  variable annual yield (1.69% at December 31, 2013)
     
   
  with an indeterminate maturity date
     
   
Stable Value Wrap
   
                           -
   
  American General Life Insurance Co.
     
   
  variable annual yield (1.53% at December 31, 2013)
     
   
  with an indeterminate maturity date
     
   
Subtotal Wrapper Contracts
 
$
                           -
           
Shares
 
Identity of Issuer, Borrower, Lessor or Similar Party
   
 Fair Value
   
Common / Collective Trusts
     
         11,250,821
 
Wells Fargo Fixed Income Fund N
   
          122,945,600
           1,574,467
 
Metlife Separate Account No 690
   
          160,604,028
         71,868,923
 
JPMorgan US Treasury Plus Money Market Fund
   
            78,372,654
   
Total Common / Collective Trusts
 
$
          361,922,282
           
   
Corporate Debt Securities
     
           2,750,000
 
Ally Auto Receivables Trust 2012-4, 0.59%, $2,750,000 par, due 11/16/2015
 
              2,752,448
           3,000,000
 
Ally Auto Receivables Trust 2012-5, 0.62%, $3,000,000 par, due 3/15/2017
 
              3,001,590
              850,000
 
Ally Auto Receivables Trust 2013-2, 0.79%, $850,000 par, due 1/15/2018
 
                 849,227
           1,400,000
 
Altera Corp, 2.5%, $1,400,000 par, due 11/15/2018
   
              1,388,156
           2,700,000
 
American Express Credit Acct Mstr Tr, 0.68%, $2,700,000 par, due 3/15/2018
 
              2,704,860
              470,000
 
American Honda Finance Corp, 1.13%, $470,000 par, due 10/7/2016
   
                 471,922
              700,000
 
American Honda Finance Corp, 2.13%, $700,000 par, due 2/28/2017
   
                 707,882
              697,184
 
AmeriCredit Auto Receivables Trust, 0.51%, $697,184 par, due 1/8/2016
 
                 696,926
              620,000
 
Anheuser-Busch InBev Worldwide Inc, 1.38%, $620,000 par, due 7/15/2017
 
                 618,698
           2,535,000
 
Anheuser-Busch InBev Worldwide Inc, 4.13%, $2,535,000 par, due 1/15/2015
 
              2,630,291
              415,000
 
AT&T Inc, 2.4%, $415,000 par, due 8/15/2016
   
                 426,765
           1,680,000
 
AT&T Inc, 2.95%, $1,680,000 par, due 5/15/2016
   
              1,751,820
           1,085,000
 
Bank of America Corp, 3.63%, $1,085,000 par, due 3/17/2016
   
              1,141,496
              770,000
 
Bank of America Corp, 3.75%, $770,000 par, due 7/12/2016
   
                 818,602
           1,085,000
 
Bank of America Corp, 3.88%, $1,085,000 par, due 3/22/2017
   
              1,158,042
              750,000
 
Bank of New York Mellon Corp/The, 2.1%, $750,000 par, due 8/1/2018
   
                 747,195
           1,875,000
 
Bank of Nova Scotia, 1.75%, $1,875,000 par, due 3/22/2017
   
              1,910,175
           1,245,000
 
Bank of Nova Scotia, 2.05%, $1,245,000 par, due 10/7/2015
   
              1,277,158
           1,120,000
 
Barclays Bank PLC, 5.2%, $1,120,000 par, due 7/10/2014
   
              1,147,966
              700,000
 
BB&T Corp, 2.05%, $700,000 par, due 6/19/2018
   
                 693,028
           1,100,000
 
BMW Vehicle Owner Trust 2013-A, 0.67%, $1,100,000 par, due 11/27/2017
 
              1,101,023
           1,400,000
 
BP Capital Markets PLC, 1.38%, $1,400,000 par, due 5/10/2018
   
              1,358,770
              400,000
 
Branch Banking & Trust Co, 2.3%, $400,000 par, due 10/15/2018
   
                 400,596
           2,000,000
 
Capital Auto Receivables Asset Trust, 0.85%, $2,000,000 par, due 2/21/2017
 
              1,997,720
              580,000
 
Caterpillar Financial Services Corp, 1.35%, $580,000 par, due 9/6/2016
   
                 583,590
           1,000,000
 
Chase Issuance Trust, 0.22%, $1,000,000 par, due 4/15/2019
   
                 991,650
              370,000
 
Chevron Corp, 0.89%, $370,000 par, due 6/24/2016
   
                 370,877
 
 
 
19

 
 
              500,000
 
Chevron Corp, 1.1%, $500,000 par, due 12/5/2017
   
                 488,995
              525,000
 
Citigroup Inc, 0.51%, $525,000 par, due 6/9/2016
   
                 516,485
           1,355,000
 
Citigroup Inc, 3.95%, $1,355,000 par, due 6/15/2016
   
              1,441,585
              700,000
 
Citigroup Inc, 4.59%, $700,000 par, due 12/15/2015
   
                 748,027
              780,000
 
Cooperatieve Centrale Rabobank Nederland, 2.13%, $780,000 par, due 10/13/2015
 
                 800,108
              685,000
 
Cooperatieve Centrale Rabobank Nederland, 3.38%, $685,000 par, due 1/19/2017
 
                 721,230
           2,000,000
 
Covidien International Finance SA, 2.8%, $2,000,000 par, due 6/15/2015
 
              2,056,560
           1,280,000
 
Credit Suisse/New York NY, 3.5%, $1,280,000 par, due 3/23/2015
   
              1,325,222
           1,340,000
 
CVS Caremark Corp, 3.25%, $1,340,000 par, due 5/18/2015
   
              1,385,104
              945,000
 
Deutsche Bank AG/London, 3.88%, $945,000 par, due 8/18/2014
   
                 964,826
           1,220,000
 
Devon Energy Corp, 1.88%, $1,220,000 par, due 5/15/2017
   
              1,228,882
              755,000
 
DIRECTV Holdings LLC / DIRECTV Financing Co Inc, 2.4%, $755,000 par, due 3/15/2017
 
                 768,635
           2,470,000
 
DIRECTV Holdings LLC / DIRECTV Financing Co Inc, 3.5%, $2,470,000 par, due 3/1/2016
 
              2,592,734
           1,550,000
 
Discover Card Execution Note Trust, 0.69%, $1,550,000 par, due 8/15/2018
 
              1,545,800
           1,175,000
 
Duke Realty LP, 5.95%, $1,175,000 par, due 2/15/2017
   
              1,307,517
              992,460
 
Education Loan Asset-Backed Trust I, 0.96%, $992,460 par, due 6/25/2026
 
                 988,025
              930,000
 
EMC Corp/MA, 1.88%, $930,000 par, due 6/1/2018
   
                 919,435
           2,100,000
 
Extended Stay America Trust 2013-ESH, 1.28%, $2,100,000 par, due 12/5/2031
 
              2,058,630
           2,000,000
 
Extended Stay America Trust 2013-ESH, 2.96%, $2,000,000 par, due 12/5/2019
 
              1,940,800
           2,500,000
 
Ford Credit Auto Lease Trust 2013-A, 0.6%, $2,500,000 par, due 3/15/2016
 
              2,499,925
           2,100,000
 
Ford Credit Auto Owner Trust 2013-B, 0.57%, $2,100,000 par, due 10/15/2017
 
              2,102,457
           2,325,000
 
Ford Credit Auto Owner Trust 2013-C, 0.82%, $2,325,000 par, due 12/15/2017
 
              2,333,440
           1,595,000
 
Ford Motor Credit Co LLC, 3%, $1,595,000 par, due 6/12/2017
   
              1,657,715
              435,000
 
Ford Motor Credit Co LLC, 4.25%, $435,000 par, due 2/3/2017
   
                 467,960
              621,514
 
GE Capital Commercial Mortgage Corp, 4.89%, $621,514 par, due 3/10/2040
 
                 622,166
           2,000,000
 
GE Equipment Midticket LLC Series 2013-1, 0.95%, $2,000,000 par, due 4/22/2016
 
              2,004,580
           1,775,000
 
GE Equipment Transportation LLC Series 2012-2, 0.62%, $1,775,000 par, due 7/25/2016
 
              1,774,858
           1,400,000
 
GE Equipment Transportation LLC Series 2013-1, 0.69%, $1,400,000 par, due 11/25/2016
 
              1,399,370
           2,090,000
 
GE Equipment Transportation LLC Series 2013-2, 0.92%, $2,090,000 par, due 9/25/2017
 
              2,089,039
           2,000,000
 
GEDFT 2012-4 A, 0.61%, $2,000,000 par, due 10/20/2015
   
              2,001,640
           2,130,000
 
General Electric Capital Corp, 2.3%, $2,130,000 par, due 4/27/2017
   
              2,189,363
              900,000
 
GlaxoSmithKline Capital PLC, 1.5%, $900,000 par, due 5/8/2017
   
                 900,405
           2,140,000
 
Goldman Sachs Group Inc/The, 3.63%, $2,140,000 par, due 2/7/2016
   
              2,245,887
              860,000
 
Hartford Financial Services Group Inc, 4%, $860,000 par, due 10/15/2017
 
                 914,713
              895,000
 
Hewlett-Packard Co, 3%, $895,000 par, due 9/15/2016
   
                 930,997
              950,000
 
Honda Auto Receivables 2012-4 Owner Trust, 0.52%, $950,000 par, due 8/18/2016
 
                 950,941
           1,200,000
 
Honda Auto Receivables 2013-4 Owner Trust, 0.69%, $1,200,000 par, due 9/18/2017
 
              1,200,936
           2,000,000
 
HSBC Finance Corp, 0.49%, $2,000,000 par, due 1/15/2014
   
              2,000,020
           1,750,000
 
Hyundai Auto Receivables Trust 2013-C, 1.01%, $1,750,000 par, due 2/15/2018
 
              1,760,185
           1,400,000
 
Intel Corp, 1.35%, $1,400,000 par, due 12/15/2017
   
              1,383,676
              500,000
 
JPMorgan Chase & Co, 3.15%, $500,000 par, due 7/5/2016
   
                 524,190
              910,000
 
JPMorgan Chase & Co, 3.45%, $910,000 par, due 3/1/2016
   
                 954,454
           1,889,255
 
Kentucky Higher Education Student Loan Corp, 0.67%, $1,889,255 par, due 6/1/2026
 
              1,869,474
           1,350,000
 
Kraft Foods Group Inc, 2.25%, $1,350,000 par, due 6/5/2017
   
              1,366,970
              555,000
 
Lowe's Cos Inc, 1.63%, $555,000 par, due 4/15/2017
   
                 553,035
           1,500,000
 
M&T Bank Auto Receivables Trust 2013-1, 1.06%, $1,500,000 par, due 11/15/2017
 
              1,508,790
              404,000
 
Macy's Retail Holdings Inc, 5.9%, $404,000 par, due 12/1/2016
   
                 453,159
           1,125,000
 
Massachusetts Health & Educational Facilities Authority, 5.26%, $1,125,000 par, due 10/1/2018
 
              1,280,846
           1,000,000
 
MassMutual Global Funding II, 2.1%, $1,000,000 par, due 8/2/2018
   
                 991,940
              575,000
 
Mercedes-Benz Auto Receivables Trust 2013-1, 0.78%, $575,000 par, due 8/15/2017
 
                 576,098
           2,418,000
 
Micron Semiconductor Asia Pte Ltd, 1.26%, $2,418,000 par, due 1/15/2019
 
              2,409,561
           1,325,000
 
Morgan Stanley Capital I Trust 2007-IQ13, 5.36%, $1,325,000 par, due 3/15/2044
 
              1,458,958
1,600,000
 
Morgan Stanley Capital I Trust 2007-TOP27, 5.65%, $1,600,000 par, due 6/11/2042
 
1,797,648
1,615,000
 
Morgan Stanley, 4%, $1,615,000 par, due 7/24/2015
   
1,686,286
1,380,000
 
Morgan Stanley, 4.75%, $1,380,000 par, due 3/22/2017
   
1,506,022
545,000
 
Morgan Stanley, 5.55%, $545,000 par, due 4/27/2017
   
607,958
2,095,000
 
NBCUniversal Media LLC, 3.65%, $2,095,000 par, due 4/30/2015
   
2,178,800
1,500,021
 
New Hampshire Higher Education Loan Corp, 0.66%, $1,500,021 par, due 10/25/2028
 
1,488,516
 
 
 
20

 
 
1,000,000
 
New York Life Global Funding, 1.3%, $1,000,000 par, due 10/30/2017
   
968,000
1,400,000
 
Nissan Auto Receivables 2013-B Owner Trust, 0.84%, $1,400,000 par, due 11/15/2017
 
1,406,244
1,800,000
 
Ohio Phase-In-Recovery Funding LLC, 2.05%, $1,800,000 par, due 7/1/2019
 
1,791,230
640,000
 
Oracle Corp, 2.38%, $640,000 par, due 1/15/2019
   
645,728
510,000
 
Peco Energy Co, 1.2%, $510,000 par, due 10/15/2016
   
511,469
1,470,000
 
Phillips 66, 2.95%, $1,470,000 par, due 5/1/2017
   
1,529,373
2,000,000
 
Porsche Innovative Lease Owner Trust 2012-1, 0.54%, $2,000,000 par, due 12/21/2015
 
1,998,740
3,445,000
 
Prudential Financial Inc, 5.1%, $3,445,000 par, due 9/20/2014
   
3,555,033
900,000
 
Reckitt Benckiser Treasury Services PLC, 2.13%, $900,000 par, due 9/21/2018
 
895,536
475,000
 
Rio Tinto Finance USA Ltd, 2.25%, $475,000 par, due 9/20/2016
   
488,861
900,000
 
Rio Tinto Finance USA PLC, 2.25%, $900,000 par, due 12/14/2018
   
895,563
1,400,000
 
Royal Bank of Canada, 2%, $1,400,000 par, due 10/1/2018
   
1,392,734
2,135,000
 
Royal Bank of Scotland PLC/The, 4.88%, $2,135,000 par, due 3/16/2015
   
2,232,335
2,100,000
 
Santander Drive Auto Receivables Tr, 0.7%, $2,100,000 par, due 9/15/2017
 
2,098,173
2,120,000
 
Shell International Finance BV, 3.1%, $2,120,000 par, due 6/28/2015
   
2,200,094
1,157,013
 
SLM Student Loan Trust 2012-7, 0.32%, $1,157,013 par, due 2/27/2017
   
1,155,994
1,687,746
 
Small Business Administration Participation Certificates, 2.09%, $1,687,746 par, due 11/1/2032
 
1,566,127
2,331,814
 
Small Business Administration Participation Certificates, 4.14%, $2,331,814 par, due 2/1/2030
 
2,445,513
1,826,843
 
Student Loan Corp, 0.86%, $1,826,843 par, due 7/25/2036
   
1,819,102
1,350,000
 
Toronto-Dominion Bank/The, 2.5%, $1,350,000 par, due 7/14/2016
   
1,400,315
995,000
 
Total Capital International SA, 1.55%, $995,000 par, due 6/28/2017
   
995,209
1,500,000
 
Toyota Auto Receivables 2013-B Owner Trust, 0.89%, $1,500,000 par, due 7/17/2017
 
1,506,975
1,400,000
 
Toyota Motor Credit Corp, 2%, $1,400,000 par, due 10/24/2018
   
1,399,594
480,000
 
UBS AG/Stamford CT, 3.88%, $480,000 par, due 1/15/2015
   
496,248
375,000
 
UBS AG/Stamford CT, 5.88%, $375,000 par, due 12/20/2017
   
430,324
1,400,000
 
Union Pacific Corp, 5.65%, $1,400,000 par, due 5/1/2017
   
1,573,488
385,000
 
United Technologies Corp, 1.8%, $385,000 par, due 6/1/2017
   
390,933
1,080,000
 
Verizon Communications Inc, 2%, $1,080,000 par, due 11/1/2016
   
1,101,989
1,240,000
 
Verizon Communications Inc, 3%, $1,240,000 par, due 4/1/2016
   
1,293,072
2,000,000
 
Volvo Financial Equipment LLC Series 2013-1, 0.74%, $2,000,000 par, due 3/15/2017
 
1,998,340
1,600,000
 
World Omni Auto Lease Sec Trust, 0.73%, $1,600,000 par, due 5/16/2016
 
1,601,568
2,000,000
 
World Omni Auto Receivables Trust 2012-B, 0.61%, $2,000,000 par, due 6/15/2017
 
2,002,540
1,400,000
 
World Omni Auto Receivables Trust 2013-B, 0.83%, $1,400,000 par, due 8/15/2018
 
1,399,552
   
Total Corporate Debt Securities
 
$
161,326,047
           
   
Government Bonds
     
1,300,000
 
Arizona School Facilities Board, 1.75%, $1,300,000 par, due 7/1/2019
 
$
              1,237,704
1,385,000
 
Bear Stearns Commercial Mortgage Securities Trust 2006-PWR11, 5.44%, $1,385,000 par, due 3/11/2039
              1,491,908
2,320,000
 
Bear Stearns Commercial Mortgage Securities Trust 2006-PWR12, 5.71%, $2,320,000 par, due 9/11/2038
              2,535,992
1,000,000
 
Beaver County School District, 1.76%, $1,000,000 par, due 2/1/2018
   
                 983,880
1,200,000
 
Commonwealth of Massachusetts, 0.52%, $1,200,000 par, due 4/1/2016
   
              1,187,772
1,005,000
 
Coos County School District No 13 North Bend, 2.01%, $1,005,000 par, due 6/15/2020
 
                 948,871
400,000
 
County of Baltimore MD, 3.31%, $400,000 par, due 11/1/2019
   
                 415,076
1,650,000
 
County of Harris TX, 1.37%, $1,650,000 par, due 10/1/2018
   
              1,586,228
300,000
 
County of New Castle DE, 1%, $300,000 par, due 7/15/2016
   
                 298,656
110,000
 
County of Travis TX, 0.87%, $1,110,000 par, due 3/1/2016
   
              1,105,904
1,500,000
 
Denver City & County School District No 1, 0.97%, $1,500,000 par, due 12/1/2016
 
              1,481,535
3,030,000
 
European Investment Bank, 1.63%, $3,030,000 par, due 6/15/2017
   
              3,077,874
1,725,000
 
Hashemite Kingdom of Jordan Government AID, 2.5%, $1,725,000 par, due 10/30/2020
 
              1,689,534
135,000
 
Lake County Township High School District No 121 Warren, 0.85%, $135,000 par, due 3/1/2014
 
                 135,058
295,000
 
Lake County Township High School District No 121 Warren, 1%, $295,000 par, due 3/1/2015
 
                 295,348
1,000,000
 
Manhattan Beach Unified School District, 2.01%, $1,000,000 par, due 9/1/2019
 
                 964,090
1,494,672
 
MSN 41079 and 41084 Ltd, 1.72%, $1,494,672 par, due 7/13/2024
   
              1,426,067
925,000
 
New York State Dormitory Authority, 1%, $925,000 par, due 2/15/2016
   
                 921,198
2,747,131
 
North Carolina State Ed Assistance Auth, 0.97%, $2,747,131 par, due 7/25/2039
 
              2,750,400
1,000,000
 
North Orange County Community College District/CA, 0.96%, $1,000,000 par, due 8/1/2016
 
                 996,800
1,400,000
 
Overseas Private Investment Corp, $1,400,000 par, due 7/12/2014
   
              1,415,078
2,700,000
 
Petroleos Mexicanos, 0.67%, $2,700,000 par, due 2/15/2024
   
              2,713,986
 
 
 
21

 
 
1,260,000
 
Petroleos Mexicanos, 2%, $1,260,000 par, due 12/20/2022
   
              1,241,264
2,175,000
 
Petroleos Mexicanos, 2.83%, $2,175,000 par, due 2/15/2024
   
              2,203,297
1,841,565
 
Phoenix 2012 LLC, 1.61%, $1,841,565 par, due 7/3/2024
   
              1,750,666
1,000,000
 
South San Antonio Independent School District/TX, 3.75%, $1,000,000 par, due 8/15/2014
 
              1,019,610
1,250,000
 
State of Maryland, 1.4%, $1,250,000 par, due 8/1/2017
   
              1,247,388
875,000
 
State of Michigan, 1.38%, $875,000 par, due 5/15/2016
   
                 876,111
1,000,000
 
State of New York, 3.75%, $1,000,000 par, due 3/1/2018
   
              1,068,520
500,000
 
State of Ohio, 3.18%, $500,000 par, due 5/1/2018
   
                 520,455
855,000
 
State of Tennessee, 2.33%, $855,000 par, due 8/1/2017
   
                 878,393
1,200,000
 
State of Wisconsin, 5.05%, $1,200,000 par, due 5/1/2018
   
              1,312,188
1,848,440
 
Tagua Leasing LLC, 1.58%, $1,848,440 par, due 11/16/2024
   
              1,741,046
2,975,000
 
United States Small Business Administration, 3.64%, $2,975,000 par, due 9/10/2023
 
              3,067,344
1,775,000
 
United States Treasury Inflation Indexed Bonds, 0.13%, $1,775,000 par, due 7/15/2022
 
              1,726,745
10,291,000
 
United States Treasury Inflation Indexed Bonds, 0.13%, $10,291,000 par, due 4/15/2018
 
            10,604,315
6,460,000
 
United States Treasury Note/Bond, 0.88%, $6,460,000 par, due 4/30/2017
 
              6,440,814
4,350,000
 
United States Treasury Note/Bond, 1.25%, $4,350,000 par, due 10/31/2018
 
              4,264,697
6,100,000
 
United States Treasury Note/Bond, 1.75%, $6,100,000 par, due 10/31/2020
 
              5,852,218
4,000,000
 
United States Treasury Note/Bond, 2.38%, $4,000,000 par, due 12/31/2020
 
              3,984,360
1,000,000
 
Virginia College Building Authority, 4.25%, $1,000,000 par, due 2/1/2018
 
              1,082,590
735,000
  Washington & Multnomah Counties School Dist No 48J Beaverton, 1.72%, $735,000 par, due 6/15/2019   706,203
   
Total Government Bonds
 
$
            81,247,183
           
   
Mortgage Backed Securities
     
2,272,281
 
Citigroup Commercial Mortgage Trust 2004-C2, 4.73%, $2,272,281 par, due 10/15/2041
 
              2,311,864
2,275,000
 
Citigroup Commercial Mortgage Trust 2013-GC11, 2.69%, $2,275,000 par, due 12/10/2022
 
              2,209,002
206,030
 
COMM 2004-LNB2 Mortgage Trust, 4.71%, $206,030 par, due 3/10/2039
 
                 206,032
353,817
 
Commercial Mortgage Trust 2005-GG3, 4.57%, $353,817 par, due 8/10/2042
 
                 353,517
344,028
 
DBRR 2012 - EZ1 A, 0.95%, $344,028 par, due 9/25/2045
   
                 344,045
2,750,000
 
Fannie Mae Pool, 1.27%, $2,750,000 par, due 9/1/2017
   
              2,752,998
1,673,414
 
Fannie Mae Pool, 2%, $1,673,414 par, due 11/1/2022
   
              1,682,785
1,839,529
 
Fannie Mae Pool, 2%, $1,839,529 par, due 5/1/2023
   
              1,849,831
2,018,480
 
Fannie Mae Pool, 2%, $2,018,480 par, due 8/1/2023
   
              2,029,763
1,656,520
 
Fannie Mae Pool, 2.5%, $1,656,520 par, due 10/1/2022
   
              1,691,208
1,928,948
 
Fannie Mae Pool, 2.5%, $1,928,948 par, due 8/1/2023
   
              1,969,321
1,978,120
 
Fannie Mae Pool, 2.5%, $1,978,120 par, due 8/1/2022
   
              2,019,482
1,986,625
 
Fannie Mae Pool, 2.5%, $1,986,625 par, due 1/1/2028
   
              1,968,427
2,070,180
 
Fannie Mae Pool, 2.5%, $2,070,180 par, due 9/1/2022
   
              2,113,508
2,132,976
 
Fannie Mae Pool, 2.5%, $2,132,976 par, due 11/1/2022
   
              2,177,598
2,141,826
 
Fannie Mae Pool, 2.5%, $2,141,826 par, due 10/1/2022
   
              2,186,676
2,261,093
 
Fannie Mae Pool, 2.5%, $2,261,093 par, due 11/1/2022
   
              2,308,463
3,552,548
 
Fannie Mae Pool, 2.5%, $3,552,548 par, due 2/1/2023
   
              3,627,080
3,845,423
 
Fannie Mae Pool, 2.5%, $3,845,423 par, due 6/1/2023
   
              3,925,870
6,243,094
 
Fannie Mae Pool, 2.5%, $6,243,094 par, due 8/1/2022
   
              6,373,700
6,990,802
 
Fannie Mae Pool, 2.5%, $6,890,802 par, due 12/1/2022
   
              7,035,302
960,717
 
Fannie Mae Pool, 2.5%, $960,717 par, due 8/1/2023
   
                 980,825
969,130
 
Fannie Mae Pool, 2.5%, $969,130 par, due 9/1/2023
   
                 989,424
323,694
 
Fannie Mae Pool, 3%, $323,694 par, due 5/1/2027
   
                 330,682
886,167
 
Fannie Mae Pool, 3%, $886,167 par, due 10/1/2027
   
                 896,916
3,084,042
 
Fannie Mae Pool, 4%, $3,084,042 par, due 11/1/2025
   
              3,287,468
3,897,175
 
Fannie Mae Pool, 4%, $3,897,175 par, due 6/1/2026
   
              4,132,565
2,892,428
 
Fannie Mae Pool, 4.5%, $2,892,428 par, due 6/1/2018
   
              3,078,668
985,288
 
Fannie Mae Pool, 4.5%, $985,288 par, due 12/1/2022
   
              1,049,855
1,941,573
 
Fannie Mae Pool, 5%, $1,941,573 par, due 6/1/2023
   
              2,090,820
2,465,604
 
Fannie Mae Pool, 5%, $2,465,604 par, due 3/1/2025
   
              2,672,402
3,796,659
 
Fannie Mae Pool, 5%, $3,796,659 par, due 6/1/2020
   
              4,064,475
2,216,350
 
Fannie Mae Pool, 5.5%, $2,216,350 par, due 9/1/2023
   
              2,435,195
2,025,000
 
Federal Home Loan Mortgage Corp, 1%, $2,025,000 par, due 9/29/2017
   
              2,001,287
2,000,000
 
FH 7/1 HYB 2.91 FEB, 2.91%, $2,000,000 par, due 2/1/2044
   
              2,026,476
 
 
 
22

 
 
2,000,000
 
FHLMC K710 A2 Multifam, 1.88%, $2,000,000 par, due 5/25/2019
   
              1,957,560
2,000,000
 
FHLMC Multifamily Structured Pass Through Certificates, 2.31%, $2,000,000 par, due 3/25/2020
 
              1,966,680
2,175,000
 
FHLMC Multifamily Structured Passthrough, 2.7%, $2,175,000 par, due 5/25/2018
 
              2,247,123
4,125,000
 
FHMS K712 A2, 1.87%, $4,125,000 par, due 11/25/2019
   
              3,987,638
2,500,000
 
FN 7/1 HYB 2.94 FEB, 2.94%, $2,500,000 par, due 2/1/2044
   
              2,534,720
2,000,000
 
FNA 2012 - M14 ASQ2, 1.11%, $2,000,000 par, due 2/25/2017
   
              1,990,280
1,857,092
 
Freddie Mac Gold Pool, 2.5%, $1,857,092 par, due 4/1/2023
   
              1,892,674
1,911,092
 
Freddie Mac Gold Pool, 2.5%, $1,911,092 par, due 4/1/2023
   
              1,947,976
1,966,765
 
Freddie Mac Gold Pool, 2.5%, $1,966,765 par, due 1/1/2028
   
              1,951,365
1,945,815
 
Freddie Mac Gold Pool, 4%, $1,945,815 par, due 7/1/2026
   
              2,055,771
1,856,323
 
Freddie Mac Gold Pool, 4.5%, $1,856,323 par, due 6/1/2025
   
              2,018,777
2,845,721
 
Freddie Mac Gold Pool, 5%, $2,845,721 par, due 10/1/2020
   
              3,020,354
634,791
 
Freddie Mac Gold Pool, 5%, $634,791 par, due 4/1/2023
   
                 685,593
951,557
 
Freddie Mac Gold Pool, 5%, $951,557 par, due 2/1/2025
   
              1,028,490
1,985,074
 
Freddie Mac Non Gold Pool, 2.37%, $1,985,074 par, due 10/1/2043
   
              1,990,116
1,758,252
 
Freddie Mac REMICS, 4.5%, $1,758,252 par, due 7/15/2032
   
              1,826,419
1,619,562
 
Freddie Mac REMICS, 4.75%, $1,619,562 par, due 6/15/2035
   
              1,716,901
1,234,159
 
Freddie Mac REMICS, 5%, $1,234,159 par, due 4/15/2033
   
              1,280,033
174,518
 
Freddie Mac REMICS, 5%, $174,518 par, due 6/15/2033
   
                 177,670
327,625
 
Ginnie Mae I pool, 5%, $327,625 par, due 10/15/2019
   
                 348,953
3,080,447
 
Ginnie Mae II pool, 4.12%, $3,080,447 par, due 8/1/2062
   
              3,311,173
1,123,888
 
Government National Mortgage Association, 3%, $1,123,888 par, due 3/20/2038
 
              1,156,306
1,406,710
 
Government National Mortgage Association, 3.5%, $1,406,710 par, due 1/20/2039
 
              1,424,476
956,197
 
Government National Mortgage Association, 3.5%, $956,197 par, due 2/20/2039
 
                 986,149
1,772,608
 
Government National Mortgage Association, 4%, $1,772,608 par, due 9/20/2038
 
              1,883,750
552,118
 
Government National Mortgage Association, 4%, $552,118 par, due 6/20/2040
 
                 566,389
583,421
 
Government National Mortgage Association, 4%, $583,421 par, due 12/16/2038
 
                 613,998
631,832
 
Government National Mortgage Association, 4%, $631,832 par, due 5/16/2035
 
                 671,992
1,891,224
 
Government National Mortgage Association, 4.25%, $1,891,224 par, due 10/20/2038
 
              2,017,217
277,198
 
Government National Mortgage Association, 4.25%, $277,198 par, due 11/20/2034
 
                 282,504
664,946
 
Government National Mortgage Association, 4.25%, $664,946 par, due 5/20/2039
 
                 704,295
2,212,084
 
Government National Mortgage Association, 4.5%, $2,212,084 par, due 9/20/2036
 
              2,299,227
2,402,855
 
Government National Mortgage Association, 4.5%, $2,402,855 par, due 4/20/2036
 
              2,516,229
423,279
 
Government National Mortgage Association, 4.5%, $423,279 par, due 7/20/2038
 
                 452,291
592,560
 
Government National Mortgage Association, 4.5%, $592,560 par, due 4/20/2040
 
                 631,426
675,371
 
Government National Mortgage Association, 4.5%, $675,371 par, due 5/20/2040
 
                 708,032
1,000,000
 
Government National Mortgage Association, 5%, $1,000,000 par, due 5/20/2038
 
              1,052,209
1,100,000
 
Government National Mortgage Association, 5.5%, $1,100,000 par, due 2/16/2037
 
              1,194,698
904,810
 
Helios Leasing I LLC, 1.56%, $904,810 par, due 9/28/2024
   
                 854,131
2,000,000
 
Hilton USA Trust 2013-HLF, 1.17%, $2,000,000 par, due 11/5/2030
   
              2,002,000
2,000,000
 
JP Morgan Chase Commercial Mortgage Securities Trust 2012-C8, 2.38%, $2,000,000 par, due 4/15/2022
              1,926,680
20,000,000
 
JP Morgan Chase Commercial Mortgage Securities Trust 2013-LC11, 2.55%, $2,000,000 par, due 4/15/2046
              1,923,580
2,297,171
 
LB-UBS Commercial Mortgage Trust 2005-C5, 4.95%, $2,297,171 par, due 9/15/2030
 
              2,399,464
2,164,507
 
Merrill Lynch Mortgage Trust 2005-CKI1, 5.28%, $2,164,507 par, due 11/12/2037
 
              2,296,953
1,593,711
 
Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6, 0.66%, $1,593,711 par, due 11/15/2045
              1,586,013
2,000,000
 
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9, 2.66%, $2,000,000 par, due 1/15/2023
 
              1,925,520
1,330,000
 
SCG Trust 2013-SRP1, 1.57%, $1,330,000 par, due 11/15/2016
   
1,331,530
248,154
 
Wachovia Bank Commercial Mortgage Trust Series 2005-C21, 5.24%, $248,154 par, due 10/15/2044
 
                 263,055
   
Total Mortgage Backed Securities
 
$
          156,779,910
           
   
Net Assets Pending Settlement
   
             (3,290,526)
           
   
Subtotal Stable Value
 
$
     757,984,896
           
   
TOTAL - INVESTMENT CONTRACTS
 
$
     757,984,896
   
ADJUSTMENT FROM FAIR VALUE TO CONTRACT VALUE
 
          (866,725)
   
TOTAL - INVESTMENT CONTRACTS AT CONTRACT VALUE
$
     757,118,171

 
23

 
AMERICAN ELECTRIC POWER SYSTEM RETIREMENT SAVINGS PLAN
PLAN #002 EIN #13-4922641
SCHEDULE OF ASSETS (HELD AT END OF YEAR (continued))
DECEMBER 31, 2013
         
 Shares
 
Identity of Issuer, Borrower, Lessor or Similar Party
Fair Value
   
Cash Equivalents
   
         16,534,243
 
Cash Equivalents
 
                 16,534,243
   
Total Cash Equivalents
$
                 16,534,243
         
   
Common / Collective Trusts
   
         445,116
 
JPMCB US Real Estate Securities Fund
$
                 21,321,034
      3,677,222
 
EB Daily Liquidity Non SL Aggregate Bond Index Fund
 
               454,335,541
      2,771,510
 
EB Daily Liquidity Non SL International Stock Index Fund
 
               382,529,284
      1,095,311
 
EB Daily Liquidity Non SL Small Cap Stock
 
               218,730,345
      3,433,133
 
EB Daily Liquidity Non SL Stock Index Fund
 
               637,979,183
         129,876
 
EB DL Non SL Treasury Inflation Protected Securities Fund
 
                 14,878,293
      1,234,128
 
JPMCB Emerging Markets - Equity Focused
 
                 21,301,049
           17,422
 
JPMCB Strategic Property Fund
 
                 37,903,552
     20,014,690
 
JPMCB Liquidity Fund
 
                 20,014,690
   
Total Common / Collective Trusts
$
            1,808,992,971
         
   
AEP Stock
   
       6,303,223
 
American Electric Power Company, Inc.   Common Stock $6.50 par value
$
               294,612,643
   
Total AEP Stock
$
               294,612,643
         
   
Corporate Stock
   
            9,100
 
3M CO USD0.01
$
                   1,276,275
            5,950
 
AARON'S INC CLASS'A'COM VTG USD0.5
 
                      175,055
           83,692
 
ABBOTT LABORATORIES NPV
 
                   3,207,914
           30,900
 
ABBVIE INC USD0.01
 
                   1,631,829
           20,175
 
ABERCROMBIE & FITCH CO USD0.01 A
 
                      663,959
            6,130
 
ABM INDUSTRIES INC USD0.01
 
                      176,207
            6,025
 
ACTUANT CORP USD0.20 A
 
                      220,756
           36,872
 
ADOBE SYSTEMS INC USD0.0001
 
                   2,207,895
           10,565
 
AEGION CORP USD0.01
 
                      231,268
            8,700
 
AERCAP HOLDINGS N.V. EUR0.01
 
                      333,645
            6,660
 
AEROPOSTALE INC USD0.01
 
                        60,539
           12,549
 
AEROPOSTALE INC USD0.01
 
                      114,070
           22,900
 
AETNA INC NEW USD0.001
 
                   1,570,711
           14,800
 
AFC ENTERPRISES INC USD0.01
 
                      569,800
            7,200
 
AFFILIATED MANAGERS GROUP INC USD0.01
 
                   1,561,536
            8,750
 
AGCO CORP USD0.01
 
                      517,913
           20,600
 
AGCO CORP USD0.01
 
                   1,219,314
           25,400
 
AGCO CORP USD0.01
 
                   1,503,426
            3,200
 
AGRIUM INC COM NPV
 
                      295,136
           15,000
 
AIR METHODS CORP USD0.06
 
                      874,950
            2,600
 
AIR PRODUCTS & CHEMICALS INC COM STK USD1
 
                      292,474
            4,500
 
ALBEMARLE CORP USD0.01
 
                      286,335
           27,603
 
ALEXION PHARMACEUTICAL INC COM NPV USD0.001
 
                   3,672,855
           35,527
 
ALLERGAN INC USD0.01
 
                   3,946,339
            3,700
 
ALLIANCE DATA SYSTEM USD0.01
 
                      972,841
            7,300
 
ALLIANCE DATA SYSTEM USD0.01
 
                   1,919,389
           19,000
 
ALLSTATE CORP USD0.01
 
                   1,041,010
           21,900
 
ALLSTATE CORP USD0.01
 
                   1,199,901
           22,212
 
AMAZON COM INC USD0.01
 
                   8,857,923
           11,375
 
AMC NETWORKS INC USD0.01
 
                      774,751
            9,785
 
AMDOCS LTD COMMON STOCK USD 0.01
 
                      404,805
           20,300
 
AMEREN CORP USD0.01
 
                      734,048
           29,903
 
AMERICAN AIRLINES GROUP INC COMMON STOCK USD 1
 
                      755,051
           12,525
 
AMERICAN CAPITAL AGENCY CORP USD0.01
 
                      249,749
            9,555
 
AMERICAN CAPITAL MTG INV CORP USD0.01
 
                      173,041
           21,460
 
AMERICAN EAGLE OUTFITTER USD0.01
 
                      309,024
           31,700
 
AMERICAN PUBLIC EDUCATION INC USD0.01
 
                   1,377,999
           13,340
 
AMERICAN RESIDENTIAL PPTYS INC USD0.01
 
                      228,914
           33,073
 
AMERICAN TOWER CORPORATION
 
                   2,639,887
 
 
 
24

 
 
            8,200
 
AMERIPRISE FINANCIAL INC USD0.01
 
                      943,410
            9,800
 
AMERIPRISE FINANCIAL INC USD0.01
 
                   1,127,490
           22,100
 
AMERISOURCEBERGEN CORP NPV
 
                   1,553,851
           20,900
 
AMPHENOL CORP USD0.001 A
 
                   1,868,042
            4,120
 
AMSURG CORP NPV
 
                      189,190
           23,532
 
ANADARKO PETROLEUM CORP USD0.10
 
                   1,866,558
            4,600
 
ANN INC USD0.0068
 
                      168,176
           27,835
 
ANWORTH MORTGAGE ASSET CORP USD0.01
 
                      119,412
            8,300
 
APACHE CORP USD0.625
 
                      713,302
           12,805
 
APOLLO INVESTMENT CORP COM STK USD0.001
 
                      111,147
           11,842
 
APPLE INC COMMON STOCK USD 0.00001
 
                   6,644,665
            6,900
 
ARCHER DANIELS MIDLAND CO NPV
 
                      299,460
           12,510
 
ARES CAPITAL CORP USD0.001
 
                      222,303
           18,815
 
ARES COMMERCIAL REAL ESTATE CORP USD0.01
 
                      251,180
            6,730
 
ARGO GROUP INTL HLDGS USD0.01
 
                      312,878
           37,285
 
ARM HLDGS ADS EACH REP 3 ORD
 
                   2,040,981
           90,765
 
ARMOUR RESIDENTIAL REIT INC USD0.0001
 
                      363,968
           92,400
 
ARRAY BIOPHARMA INC USD0.001
 
                      462,924
           77,200
 
ARRIS GROUP INC USD0.01
 
                   1,880,978
           18,880
 
ARROW ELECTRONICS INC USD1
 
                   1,024,240
            1,000
 
ARTISAN PARTNERS ASSET MGMT INC USD0.01 A
 
                        65,190
            3,585
 
ASBURY AUTOMOTIVE GROUP INC USD0.01
 
                      192,658
           18,240
 
ASCENA RETAIL GROUP INC USD0.05
 
                      385,958
           37,400
 
ASCENA RETAIL GROUP INC USD0.05
 
                      791,384
           10,000
 
ASHLAND INC USD1
 
                      970,400
            7,600
 
ASPEN INSURANCE HLDGS USD0.15144558
 
                      313,956
           15,800
 
ASSOCIATED ESTATES REALTY CORP COM NPV
 
                      253,590
            3,360
 
ASSURANT INC USD0.01
 
                      223,003
            7,800
 
ASSURANT INC USD0.01
 
                      517,686
           17,300
 
ASSURANT INC USD0.01
 
                   1,148,201
           30,600
 
ASSURED GUARANTY LTD USD0.01
 
                      721,854
            4,963
 
ATLAS AIR WORLDWIDE HOLDINGS INC USD0.01
 
                      204,227
         311,293
 
ATMEL CORP USD0.001
 
                   2,437,424
           25,900
 
ATWOOD OCEANICS INC USD1
 
                   1,382,801
           14,000
 
AUTOLIV INC USD1
 
                   1,285,200
            2,500
 
AUTOZONE INC USD0.01
 
                   1,194,850
           17,830
 
AVNET INC USD1
 
                      786,481
           37,900
 
AVNET INC USD1
 
                   1,671,769
            5,200
 
AXIALL CORP USD0.01
 
                      247,520
           10,535
 
AXIS CAPITAL HLDGS USD0.0125
 
                      503,994
            5,600
 
BALL CORP NPV
 
                      289,296
           31,500
 
BALL CORP NPV
 
                   1,627,290
            1,100
 
BANCFIRST CORP USD1
 
                        62,007
           12,632
 
BBCN BANCORP INC
 
                      209,565
            9,500
 
BED BATH AND BEYOND USD0.01
 
                      762,850
            3,000
 
BEL FUSE INC CLASS'B'SHS USD0.1
 
                        63,930
            2,815
 
BELDEN INC COM STK USD0.01
 
                      198,458
            3,800
 
BELDEN INC COM STK USD0.01
 
                      267,900
           24,600
 
BELDEN INC COM STK USD0.01
 
                   1,734,300
           15,300
 
BEMIS CO INC USD0.10
 
                      626,688
            2,100
 
BERKSHIRE HILLS BANCORP INC USD0.01
 
                        57,267
            5,900
 
BIG LOTS INC USD0.01
 
                      190,511
           14,548
 
BIOGEN IDEC INC USD0.0005
 
                   4,069,803
           38,233
 
BIOMARIN PHARMACEUTICAL USD0.001
 
                   2,686,633
            9,670
 
BIOMED REALTY TRUST INC USD0.01
 
                      177,638
           14,000
 
BOEING CO/THE COMMON STOCK USD 5
 
                   1,910,860
           35,472
 
BOEING CO/THE COMMON STOCK USD 5
 
                   4,841,573
            8,500
 
BOOZ ALLEN HAMILTON HLDG CORP USD0.01
 
                      162,775
           15,300
 
BP AMOCO P.L.C ADR-EACH CNV INTO 6 ORD USD0.25
 
                      743,733
            4,670
 
BRADY CORP 'A'NON.V USD0.01
 
                      144,443
            9,304
 
BRAVO BRIO RESTAURANT GROUP INC NPV
 
                      151,376
            4,785
 
BRINK'S COMPANY BRINKS GROUP COM USD1
 
                      163,360
           44,168
 
BRISTOL-MYERS SQUIBB CO USD0.10
 
                   2,363,430
            4,155
 
BRISTOW GROUP INC USD0.01
 
                      311,874
           39,420
 
BROCADE COMMUNICATIONS SYSTEMS INC
 
                      349,655
 
 
 
25

 
 
           13,500
 
BROOKFIELD RESIDENTIAL PROPERTIES INC COMMON STOCK
 
                      326,565
           26,498
 
BRUNSWICK CORP USD0.75
 
                   1,220,498
            3,700
 
BUNGE LTD USD0.01
 
                      303,807
           56,500
 
CA INC USD0.10
 
                   1,901,225
           72,000
 
CABLEVISION SYSTEMS CORP NY GROUP USD0.01
 
                   1,290,960
            5,020
 
CABOT CORP USD1
 
                      258,028
            7,559
 
CABOT CORP USD1
 
                      388,533
            3,700
 
CACI INTL INC CLASS A COM
 
                      270,914
         122,300
 
CAE INC COM NPV
 
                   1,558,102
           27,970
 
CALLAWAY GOLF CO USD0.01
 
                      235,787
           77,300
 
CAMECO CORP COM NPV
 
                   1,612,787
           10,800
 
CAMERON INTERNATIONAL CORP USD0.01
 
                      642,924
           17,196
 
CANADIAN PACIFIC RAILWAYS COM NPV
 
                   2,607,734
           14,600
 
CAPITAL ONE FINANCIAL CORP USD0.01
 
                   1,118,506
           45,800
 
CAPSTEAD MTGE.CORP USD0.01
 
                      567,462
           17,350
 
CAREFUSION CORP USD0.01
 
                      690,877
            3,885
 
CARLISLE COS INC USD1
 
                      308,469
           17,869
 
CARLISLE COS INC USD1
 
                   1,418,799
            6,400
 
CATAHY GENERAL BANCORP COM STK USD0.01
 
                      171,072
           12,200
 
CATAMARAN CORP NPV
 
                      579,256
           30,760
 
CBL & ASSOCIATES PROPERTIES INC USD0.01
 
                      559,481
           25,500
 
CBS CORP CLASS'B' COM STK USD0.001
 
                   1,628,430
           20,540
 
CDW CORP USD0.01
 
                      479,814
           49,000
 
CDW CORP USD0.01
 
                   1,144,640
            6,300
 
CEC ENTERTAINMENT INC COMMON STOCK EUR 0.1
 
                      278,964
            5,249
 
CELANESE CORP COMMON STOCK USD 0.0001
 
                      290,322
            9,400
 
CELANESE CORP COMMON STOCK USD 0.0001
 
                      519,914
           18,625
 
CELGENE CORP USD0.01
 
                   3,146,880
            2,950
 
CENTENE CORP(DEL) USD0.001
 
                      173,903
           28,500
 
CENTERPOINT ENERGY INC COM STK NPV
 
                      660,630
            1,200
 
CF INDUSTRIES HOLDINGS INC USD0.01
 
                      279,648
           12,450
 
CHATHAM LODGING TRUST USD0.01
 
                      255,474
           14,300
 
CHECK POINT SOFTWARE TECHNOLOGIES ORD ILS1
 
                      922,636
           10,145
 
CHECKPOINT SYSTEMS USD0.10
 
                      159,987
           10,340
 
CHEMED CORP CAP USD1
 
                      792,251
            6,000
 
CHEVRON CORP USD0.75
 
                      749,460
                 -
 
CHICAGO BRIDGE & IRON CO N.V. EUR0.01 (REG)
 
                             181
           20,400
 
CHICAGO BRIDGE & IRON CO N.V. EUR0.01 (REG)
 
                   1,696,056
            8,389
 
CHICOS FAS INC USD0.01
 
                      158,049
            2,441
 
CHIPOTLE MEXICAN GRILL USD0.01
 
                   1,300,516
           11,300
 
CHUBB CORP USD1
 
                   1,096,891
           15,300
 
CIGNA CORP USD0.25
 
                   1,338,444
           17,900
 
CIGNA CORP USD0.25
 
                   1,565,892
         294,800
 
CINCINNATI BELL NC USD0.01
 
                   1,049,488
            9,400
 
CITY NATIONAL CORP USD1
 
                      744,668
           10,600
 
CLIFFS NATURAL RESOURCES INC COM STK USD0.125
 
                      277,826
           33,800
 
COGNEX CORP USD0.002
 
                   1,290,484
            9,700
 
COGNIZANT TECHNOLOGY SOLUTIONS CORP USD0.01
 
                      979,506
           18,885
 
COLONY FINANCIAL INC USD0.01
 
                      389,786
            4,910
 
COLUMBIA BANKING SYSTEMS INC NPV
 
                      135,074
           29,200
 
COMCAST CORP COMMON STOCK USD 0.01
 
                   1,523,072
            3,775
 
COMERICA INC USD5
 
                      180,105
            5,482
 
COMMERCE BANCSHARES INC USD5
 
                      246,197
           21,700
 
COMMUNITY HEALTH SYSTEMS INC(NEW) NPV
 
                      852,159
           21,310
 
COMPUTER SCIENCES CORP USD1
 
                   1,195,065
           16,889
 
COMSTOCK RESOURCES INC USD0.50
 
                      308,900
           22,697
 
CONCHO RESOURCES INC USD0.001
 
                   2,451,276
           16,100
 
CONNS INC USD0.01
 
                   1,268,519
           10,800
 
CONOCOPHILLIPS USD0.01
 
                      763,020
            8,015
 
CONTANGO OIL & GAS CO USD0.04
 
                      378,789
           14,600
 
CONT