APS 2014 Annual Report Download - page 15

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participants to transact in the trusts. The plan has no unfunded commitments to these trusts as of December 31, 2014. The investment
strategies of these trusts are as follows:
US Equity Trusts:
•seeks to replicate the performance of the S&P 500 Index by
investing in common stock of large-cap US companies.
  seeks to replicate the performance of the Russell Small
Cap Completeness Index by investing in common stocks of small to mid-sized US companies.
 seeks long-term capital appreciation by primarily investing in common
stocks of small and mid-cap US companies.
International Equity Trust:
•seeks to replicate the performance of the MSCI
ACWI ex USA IMI Index by investing in other collective investment trusts that hold equity investments in developing
markets.
Fixed-Income Trust:
 seeks to replicate the Barclays US Aggregate Bond Index by investing in
other collective investment trusts that hold fixed-income instruments.
Diversified Trust:
• seeks a long-term total return in excess of inflation by
investing in a mix of fixed-income instruments and common stock.
 Valued and redeemable at the quoted net asset value of shares held by the Plan. The net asset value is based on
the quoted price at the end of the day on the active market in which the individual funds are traded. Mutual funds are open-ended funds
that are registered with the Securities and Exchange Commission.
 Fair value equals the fair value of the underlying assets, plus or minus the wrap contracts. The underlying
assets consist primarily of fixed-income securities that are valued at the closing price reported on the market on which the securities are
traded. The underlying fixed-income securities have observable prices and are considered Level 2 inputs. Underlying assets also
consist of an investment in a common and collective bond trust that seeks to maximize total return in a manner consistent with the
generation of current income, preservation of capital and reduced price volatility by investing in fixed income instruments. This
common and collective trust is valued using net asset value as a practical expedient and is not classified within the fair value hierarchy.
The wrap value represents an insignificant component of the overall investments valuation. The wrap contracts are Level 3 inputs;
however, due to the immaterial nature of the wrap contracts, the synthetic GICs under-lying fixed-income securities are classified as
Level 2 investments.
 Valued at the closing price reported on the active market on which the individual securities are traded.
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