UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-10027

STATE FARM MUTUAL FUND TRUST

(Exact name of registrant as specified in charter)

One State Farm Plaza Bloomington, IL	61710-0001
(Address of principal executive offices)	(Zip code)

	Alan Goldberg
Paul J. Smith One State Farm Plaza Bloomington, Illinois 61710-0001	K&L Gates LLP 70 West Madison St., Suite 3100 Chicago, Illinois 60602

(Names and addresses of agents for service)

Registrant’s telephone number, including area code: 1-800-447-4930

Date of fiscal year end: 12/31/2013

Date of reporting period: 12/31/2013

ITEM 1. REPORTS TO STOCKHOLDERS.

Table of Contents

Message to Shareholders	1
Management’s Discussions (unaudited)
State Farm Equity Fund	4
State Farm Small/Mid Cap Equity Fund	10
State Farm International Equity Fund	16
State Farm S&P 500 Index Fund	22
State Farm Small Cap Index Fund	27
State Farm International Index Fund	32
State Farm Equity and Bond Fund	37
State Farm Bond Fund	44
State Farm Tax Advantaged Bond Fund	48
State Farm Money Market Fund	52
State Farm LifePath Funds	53
Expense Example (unaudited)	76
Schedule of Investments
State Farm Equity Fund	87
State Farm Small/Mid Cap Equity Fund	89
State Farm International Equity Fund	92
State Farm S&P 500 Index Fund	95
State Farm Small Cap Index Fund	101
State Farm International Index Fund	121
State Farm Equity and Bond Fund	132
State Farm Bond Fund	133
State Farm Tax Advantaged Bond Fund	143
State Farm Money Market Fund	156
Financial Statements
Statements of Assets and Liabilities	158
Statements of Operations	162
Statements of Changes in Net Assets	164
Notes to Financial Statements	170
Financial Highlights	196
Report of Independent Registered Public Accounting Firm	226
Federal Income Tax Information (unaudited)	227

Management Information (unaudited)	229
Master Investment Portfolio
LifePath Retirement, LifePath 2020, LifePath 2030, LifePath 2040, and LifePath 2050
Master Portfolio Information	231
Schedules of Investments	233
Statements of Assets and Liabilities	243
Statements of Operations	244
Statements of Changes in Net Assets	245
Financial Highlights	247
Notes to Financial Statements	252
Report of Independent Registered Public Accounting Firm	257
Active Stock Master Portfolio
Master Portfolio Information	258
Schedule of Investments	259
Statement of Assets and Liabilities	265
Statement of Operations	266
Statement of Changes in Net Assets	267
Financial Highlights	268
Notes to Financial Statements	269
Report of Independent Registered Public
Accounting Firm	275
CoreAlpha Bond Master Portfolio
Master Portfolio Information	276
Schedule of Investments	277
Statement of Assets and Liabilities	294
Statement of Operations	295
Statement of Changes in Net Assets	296
Financial Highlights	297
Notes to Financial Statements	298
Report of Independent Registered Public Accounting Firm	309
Officers and Trustees	310

Investment return and principal value will fluctuate and Fund shares, when redeemed, may be worth more or less than their original cost. Recent performance may be less than the figures shown in this report. Obtain total returns for the Funds current to the most recent month-end at statefarm.com^® under the Mutual Funds tab or by calling our Mutual Funds Response Center at 1-800-447-4930.

Before investing, consider the Funds’ investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp. (1-800-447-4930) for a prospectus or summary prospectus containing this and other information. Read it carefully.

Investing involves risk, including potential for loss.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, and information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, are available without charge upon request at 1-800-447-4930 and at http://www.sec.gov.

The Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q.The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov.The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.The Funds make the information on Form N-Q available to shareholders upon request without charge at 1-800-447-4930.

Any website referenced in this report is an inactive textual reference only, and information contained in or otherwise accessible through that website does not form a part of, and is not incorporated by reference into, this report.

The Funds may send one copy of each annual report, semi-annual report, prospectus, and proxy statement to an address shared by more than one shareholder, a practice commonly referred to as “householding” delivery of these documents. If the Fund documents you receive are being householded but you would like to receive individual copies of these documents, contact us to request individual delivery by writing to State Farm Investment Management Corp., P.O. Box 219548, Kansas City, Missouri 64121-9548 or by calling us at 1-800-447-4930.We will begin sending individual copies within 30 days after we receive notice that you have revoked your consent.

State Farm LifePath Funds are target-date portfolios that provide a diversified exposure to equities, fixed income, and/or cash for those investors who have a specific date in mind (in this case years 2020, 2030, 2040, or 2050) for retirement or another goal.The target date is the approximate date when investors plan to start withdrawing assets.The investment objectives of each LifePath Fund are adjusted over time to become more conservative as the target date approaches.The principal value of the LifePath Fund(s) is not guaranteed at any time, including at the target date.

Electronic Delivery

As a State Farm Mutual Funds shareholder, we wish to remind you that you can elect to have future Annual Reports, Semi-Annual Reports, Prospectuses, statements, and tax forms delivered electronically rather than receiving large, bulky paper reports through the mail.This is a great way to help reduce internal fund costs related to printing and mailing these materials as well as a way to be environmentally friendly. Please consider signing up for electronic delivery today by going on statefarm.com or contacting the Mutual Funds Response Center at 1-800-447-4930 for assistance.

Automatic Investment Plan (AIP)¹

State Farm Mutual Funds allow you to make regular investments in a Fund with an Automatic Investment Plan through an electronic transfer of funds from your bank/credit union account. If you wish to begin an Automatic Investment Plan, the minimum amount required for both initial and subsequent investments is $50. Please consider signing up today for AIP by contacting the State Farm Mutual Funds Response Center at 1-800-447-4930 for assistance.

Service is only a phone call away

Contact your local Registered State Farm Agent or call our Mutual Funds Department toll free, at 1-800-447-4930.

Fund prices are available to you 24 hours a day, 7 days a week.

Mutual Funds Response Center Representatives are available 8 a.m.–6 p.m. Central Time Monday through Friday (except holidays)

1-800-447-4930

Visit our website at statefarm.com

1 Automatic investment plans do not assure a profit or protect against loss.

Message to Shareholders of State Farm Mutual Fund Trust

Dear Shareholders,

Thank you for investing with State Farm Mutual Funds. Enclosed is the Annual Report for the 12-month period ended December 31, 2013, for the State Farm Mutual Fund Trust (“the Trust”). We encourage your review and consideration of this entire report.

Market Review

During 2013, the U.S. and international equity markets experienced positive returns while fixed income markets were mixed, with some fixed income indices achieving negative single-digit total returns, due primarily to higher interest rates.

In the U.S., equity markets (as represented by the S&P 500^® Index¹) achieved positive total returns in ten of the past twelve months ended December 31, 2013. Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations. In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Major Market Indices	1-year Total Return as of 12/31/2013
S&P 500 Index		32.39	%
Russell MidCap Index		34.76	%
Russell 2000 Index		38.82	%
MSCI EAFE Free Index		22.78	%
MSCI All Country World Index ex-U.S. Index		15.29	%
MSCI Emerging Markets Index		-2.60	%
Barclays U.S. Aggregate Bond Index		-2.02	%
Barclays Municipal Bond Index		-2.55	%

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

For the year ended December 31, 2013, large cap stocks (as represented by the S&P 500 Index) posted total returns of 32.39%, while mid-cap stocks (as represented by the Russell Midcap Index²) and small cap stocks (as represented by the Russell 2000^® Index³) posted total returns of 34.76% and 38.82%, respectively.

1 Source: Standard & Poor’s. The S&P 500 Index is a capitalization-weighted measure of common stocks of 500 large U.S. companies. It is not possible to invest directly in an index. Past performance does not guarantee future results.

2 Source: Bloomberg. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities of the Russell 1000 Index based on a combination of their market cap and current index membership. The Russell Midcap represents approximately 31% of the total market capitalization of the Russell 1000 companies. It is not possible to invest directly in an index. Past performance does not guarantee future results.

3 Source: Bloomberg. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities of the Russell 3000 Index based on a combination of their market cap and current index membership. The stocks of small companies are more volatile than the stocks of larger, more established companies. It is not possible to invest directly in an index. Past performance does not guarantee future results.

1

Message to Shareholders of State Farm Mutual Fund Trust (continued)

International equities markets, as represented by the MSCI EAFE Free^® Index and the MSCI All Country World Index (ACWI) ex-U.S. Index, posted positive total returns of 22.78% and 15.29%, respectively, for the year in U.S. dollar terms. Within the MSCI EAFE Free Index, developed European markets like Finland and Ireland were among the strongest performing markets, rising 46.04% and 41.15%, respectively, in U.S. dollar terms. Meanwhile, the United Kingdom – the largest country weighting in the MSCI EAFE Free Index at 22.0%, increased 20.67% in U.S. dollar terms. Stock market performance in emerging market countries, however, was negative during the period, with the MSCI Emerging Markets Index posting a total return of –2.60% in U.S. dollar terms⁴.

Within the bond markets, prices of U.S.Treasuries declined as concerns grew that the Federal Reserve might start reducing the amount of its asset-purchase programs sooner than expected by the markets. Over the entire 12-months, the yield on 10-year U.S.Treasuries rose from 1.78% at the beginning of the period to a high of 3.04% on December 31, 2013. Short-term yields remained low, with 3-month U.S. Treasury yields increasing 2 basis points from 0.05% at the beginning of the period to 0.07% on December 31, 2013⁵.

Source: www.treasury.gov

4 Source: Bloomberg. The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE Free) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East. The MSCI All Country World Index (ex-U.S.) (MSCI ACWI ex-U.S. Index) is a free float adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the United States. As of December 31, 2013, the MSCI ACWI ex-U.S. Index consisted of 43 developed and emerging market country indices. The Morgan Stanley Capital International Emerging Markets Index is a float-adjusted market capitalization index designed to measure equity market performance in global emerging markets. Foreign securities involve risks not normally associated with investing in the U.S. including higher trading and custody costs, less stringent accounting, legal and reporting practices, potential for political and economic instability, and the fluctuation and potential regulation of currency exchange and exchange rates, all of which are magnified in emerging markets. It is not possible to invest directly in an index. Past performance does not guarantee future results.

5 Source: The U.S. Department of Treasury. A 10-year U.S. Treasury Bond is a debt obligation issued by the U.S. Treasury that has a term of more than one year, but not more than 10 years. A 3-month U.S. Treasury Bill is a debt obligation issued by the U.S. Treasury that has a term of 92 days or less. U.S. Treasury securities are backed by the full faith and credit of the U.S. government and are guaranteed only as to the prompt payment of principal and interest, and are subject to market risks if sold prior to maturity. Bonds have historically been less volatile than stocks, but are sensitive to changes in interest rates. Past performance does not guarantee future results.

2

Message to Shareholders of State Farm Mutual Fund Trust (continued)

Among major fixed income indices, the Barclays U.S. Aggregate Bond Index provided a total return of –2.02% for the year ended December 31, 2013, while the Barclays Municipal Bond Index posted a total return of –2.55% for the same time period, as bond price declines, due primarily to higher interest rates, offset bond coupon income⁶.

With negative total returns for some bond-oriented indices, it is important to remember the risk that is present when investing, even in bond funds. Investing involves risk, including a potential for loss.

While changes in the markets, either positive or negative, are part of investing, State Farm Investment Management Corp. has consistently maintained a long-term, disciplined approach to managing investment risk⁷.

We believe individuals increase their chance for investment success by remaining focused on their long-term goals and maintaining an appropriate asset allocation mix⁸. As always, your registered State Farm agent is available to discuss your financial needs and risk tolerance.

On behalf of the entire State Farm Mutual Funds team, thank you for your continued business and allowing us to serve your investment needs.

Sincerely,

Joe R. Monk Jr.

Senior Vice President

State Farm Investment Management Corp.

6 The Barclays U.S. Aggregate Bond Index and Barclays Municipal Bond Index returns provided by Barclays Inc. The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate taxable bond market, including government and corporate debt securities, mortgage pass-through debt securities and asset-backed debt securities with maturities greater than one year. The Barclays Municipal Bond Index is representative of the tax-exempt bond market and is made up of investment grade municipal bonds issued after 12/31/90 having a remaining maturity of at least one year. Bonds have historically been less volatile than stocks, but are sensitive to changes in interest rates. It is not possible to invest directly in an index. Past performance does not guarantee future results.

7 Investing involves risk, including potential for loss.

8 Asset allocation cannot guarantee a profit or protect against a loss in a declining market.

3

State Farm Equity Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The State Farm Equity Fund (the “Fund”) is sub-advised by Bridgeway Capital Management, Inc. (“Bridgeway”) and Westwood Management Corp. (“Westwood”). Bridgeway and Westwood each manage approximately one-half of the Fund’s assets. State Farm Investment Management Corp. monitors the performance of the sub-advisers and the split of the Fund’s portfolio between the sub-advisers. The benchmark for the Fund is the S&P 500 Index (the “Index”).

The Fund seeks long-term growth of capital. In doing so, the Fund invests primarily in large capitalization stock issued by U.S. companies. Bridgeway defines “large stocks” as the largest 1,000 U.S. companies as measured by market capitalization (stock market worth).Westwood defines large capitalization companies as those companies with market capitalizations greater than $5 billion at the time of purchase.

Bridgeway selects stocks using its proprietary, quantitative investment models to identify stocks within the large-cap growth category for the Fund. Growth stocks are those that Bridgeway believes have above average prospects for economic growth. Westwood invests in a portfolio of seasoned companies utilizing a value style of investing in which it chooses those stocks that Westwood believes have earnings prospects that are currently undervalued by the market relative to some financial measure of worth such as the ratio of price to earnings, price to sales or price to cash flow. Westwood defines seasoned companies as those that generally have been operating for at least three years.

Describe the relevant market environment as it related to the Fund for the reporting period.

In the U.S., equity markets (as represented by the S&P 500 Index) achieved positive total returns in ten of the past twelve months ended December 31, 2013.Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations. In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

Throughout the year, oil and gold prices were volatile. Oil prices began the period at around $92/barrel and ranged between approximately $87 and $111/barrel during the period, before ending the period December 2013 around $98/barrel, an increase of 7% for the 12-month period. Gold prices began the period at around $1,675 per troy ounce and ranged between approximately $1,182 and $1,695 per troy ounce during the period, before ending the period December 2013 around $1,202/oz., a decrease of –28% for the 12-month period.

The U.S. dollar declined against both the euro and British pound during the period. For the period January 2013 through December 2013, the U.S. dollar decreased by approximately –4% to $1.37/euro. Versus the British pound, the U.S. dollar decreased by approximately –2% during the period to $1.66/ £.

The 12-month total return for the S&P 500 Index was 32.39% for the period ended December 31, 2013.The total return for the period reflected an increase in corporate earnings per share for the S&P 500 Index companies of approximately 8%, an expansion of the price/earnings valuation of the S&P 500 Index of approximately 20%, and a dividend return of approximately 2.3% .

Growth stocks, as represented by the Russell 1000 Growth Index, produced a total return of 33.48%, which outperformed value stocks, as represented by the Russell 1000 Value Index, which experienced a total return of 32.53%¹ .

1 The Russell 1000 Growth Index is an unmanaged market capitalization-weighted index of growth-oriented stocks of the largest U.S. domiciled companies. It includes those Russell 1000 companies with higher price-to-book ratios and higher expected growth values. The Russell 1000 Value Index is an unmanaged market capitalization-weighted index of value-oriented stocks of the largest U.S. domiciled companies. It includes those Russell 1000 companies with lower price-to book ratios and lower expected growth values.

4

Provide an illustration of the Fund’s investments.

Fund Composition*

* Illustrated by Sector and based on total net assets as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

5

How did the Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm Equity Fund had a total return of 32.50% without sales charges compared to a 32.39% total return for the S&P 500 Index. The line graphs and tables below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		26.07	%		14.58	%		2.20	%	$	11,819
Class B		26.55	%		14.70	%		2.15	%	$	11,769

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 The S&P 500 Index tracks the common stock performance of large U.S. companies in the manufacturing, utilities, transportation, and financial industries. In total, the S&P 500 is comprised of 500 common stocks. Unlike an investment in the Equity Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

6

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		28.52	%		15.06	%		3.93	%	$	14,707
Legacy Class B		28.91	%		15.06	%		3.83	%	$	14,561
Institutional		32.74	%		16.02	%		4.54	%	$	15,592
Class R-1		32.16	%		15.39	%		4.10	%*	$	14,531
Class R-2		32.35	%		15.63	%		4.30	%*	$	14,790
Class R-3		32.55	%		15.93	%		4.61	%*	$	15,210

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

1 The S&P 500 Index tracks the common stock performance of large U.S. companies in the manufacturing, utilities, transportation, and financial industries. In total, the S&P 500 is comprised of 500 common stocks. Unlike an investment in the Equity Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

7

Performance Analysis

What factors helped and hindered performance during the reporting period?

During the 1-year period ended December 31, 2013, Bridgeway and Westwood generated portfolio returns (before fees and expenses) of 37.40% and 30.49%, respectively, compared to a 32.39% return for the S&P 500 Index over the same time period. Below are discussions concerning the individual investments made by Bridgeway and Westwood during the course of the reporting period.

Bridgeway Capital Management, Inc. (51.71% of the Fund’s total investments)

The tables below show the securities that were the leading contributors and detractors to Bridgeway’s performance during the year as well as a recap of the top ten holdings within Bridgeway’s portion of the Fund.

Among the largest contributors to Bridgeway’s performance during the year were the following five holdings, with all posting double-digit gains during the period.

Bridgeway - Top 5 Contributors

Security	Sector	% of  Bridgeway’s Total Investments as of 12/31/2013
Regeneron Pharmaceuticals Inc.	Health Care		1.8	%
Western Digital Corp.	Information Technology		1.2	%
Alliance Data Systems Corp.	Information Technology		2.1	%
Seagate Technology PLC	Information Technology		1.5	%
Celgene Corp.*	Health Care		sold
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the largest detractors to Bridgeway’s performance during the year were the following five holdings, with all posting double-digit losses during the period except Exelon Corp., which posted a single-digit loss during the period.

Bridgeway - Top 5 Detractors

Security	Sector	% of  Bridgeway’s Total Investments as of 12/31/2013
Rackspace Hosting Inc.	Information Technology		0.6	%
Cliffs Natural Resources Inc.*	Materials		sold
Tenet Healthcare Corp.*	Health Care		sold
Pioneer Natural Resources Co.	Energy		1.1	%
Exelon Corp.	Utilities		1.0	%
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the top ten largest holdings within Bridgeway’s portion of the Fund, all posted double-digit gains during the period except Apple Inc. and Goodyear Tire & Rubber Co., which each posted single-digit gains during the year.

Bridgeway - Top 10 Holdings

Security	Sector	% of  Bridgeway’s Total Investments as of 12/31/2013
Apple Inc.	Information Technology		2.6	%
Goodyear Tire & Rubber Co., The	Consumer Discretionary		2.1	%
Alliance Data Systems Corp.	Information Technology		2.1	%
Sherwin-Williams Co., The	Materials		1.9	%
Regeneron Pharmaceuticals Inc.	Health Care		1.8	%
Seagate Technology PLC	Information Technology		1.5	%
Delta Air Lines Inc.	Industrials		1.4	%
Delphi Automotive PLC	Consumer Discretionary		1.4	%
Marathon Petroleum Corp.	Energy		1.4	%
Safeway Inc.	Consumer Staples		1.3	%

8

Westwood Management Corp. (48.29% of the Fund’s total investments)

The tables below show the securities that were the leading contributors and detractors to Westwood’s performance during the year as well as a recap of the top ten holdings within Westwood’s portion of the Fund.

Among the largest contributors to Westwood’s performance during the year were the following five holdings, with all posting double-digit gains during the period.

Westwood - Top 5 Contributors

Security	Sector	% of  Westwood’s Total Investments as of 12/31/2013
American International Group Inc.	Financials		2.0	%
Hartford Financial Services Group Inc., The	Financials		2.1	%
Boeing Co., The	Industrials		1.3	%
Advance Auto Parts Inc.	Consumer Discretionary		2.0	%
Viacom Inc. Class B	Consumer Discretionary		2.1	%

Among the largest detractors to Westwood’s performance during the year were the following five holdings, with all posting single-digit losses during the period except Ventas Inc., which posted a double-digit loss during the period.

Westwood - Top 5 Detractors

Security	Sector	% of  Westwood’s Total Investments as of 12/31/2013
Ventas Inc.	Financials		1.0	%
Aflac Inc.*	Financials		sold
DaVita HealthCare Partners Inc.*	Health Care		sold
EOG Resources Inc.	Energy		0.9	%
EMC Corp.*	Information Technology		sold
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the top ten largest holdings within Westwood’s portion of the Fund, all posted double-digit gains during the period except Target Corp., which posted a single-digit gain during the period.

Westwood - Top 10 Holdings

Security	Sector	% of  Westwood’s Total Investments as of 12/31/2013
JPMorgan Chase & Co.	Financials		2.9	%
Target Corp.	Consumer Discretionary		2.9	%
Johnson & Johnson	Health Care		2.8	%
Bank of America Corp.	Financials		2.5	%
Capital One Financial Corp.	Financials		2.3	%
United Technologies Corp.	Industrials		2.2	%
Comcast Corp. Class A	Consumer Discretionary		2.1	%
Hartford Financial Services Group Inc., The	Financials		2.1	%
ACE Limited	Financials		2.1	%
Honeywell International Inc.	Industrials		2.1	%

Financial highlights for this Fund can be found on pages 196-197.

9

State Farm Small/Mid Cap Equity Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The State Farm Small/Mid Cap Equity Fund (the “Fund”) is sub-advised by Bridgeway Capital Management, Inc. (“Bridgeway”) and Rainier Investment Management, LLC (“Rainier”). Bridgeway and Rainier each manage approximately one half of the Fund’s assets.

State Farm Investment Management Corp. monitors the performance of the sub-advisers and the split of the Fund’s portfolio between the sub-advisers.The benchmark for the Fund is the Russell 2500 Index (the “Index”).

The Fund seeks long-term growth of capital. In doing so, the Fund invests primarily in small- and mid-capitalization stocks issued by U.S. companies. An allocation to small- and mid-cap stocks allows for investment exposure to some companies in the earlier stages of development relative to more mature, larger capitalization companies. Bridgeway primarily invests in stocks whose market capitalization (stock market value) falls within the range of the Russell 2000 Index, an unmanaged, market value weighted index, which measures performance of the 2,000 companies that are between the 1,000th and 3,000th largest in the market with dividends reinvested. Rainier primarily invests in U.S. companies with market capitalizations within the range of companies included in the Russell Midcap Index.

Bridgeway selects stocks using its proprietary, quantitative investment models to identify small- and mid-cap “value” stocks. Bridgeway defines a “value” stock as one that it believes is priced cheaply relative to some financial measures of worth, such as the ratio of price to earnings, price to sales, or price to cash flow. In selecting common stock for purchase by the Fund, Rainier emphasizes companies that it believes are likely to demonstrate superior business growth relative to their peers and whose equities are selling at attractive relative valuations.

Describe the relevant market environment as it related to the Fund for the reporting period.

In the U.S., equity markets (as represented by the S&P 500 Index) achieved positive total returns in ten of the past twelve months ended December 31, 2013.Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations . In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

Throughout the year, oil and gold prices were volatile. Oil prices began the period at around $92/barrel and ranged between approximately $87 and $111/barrel during the period, before ending the period December 2013 around $98/barrel, an increase of 7% for the 12-month period. Gold prices began the period at around $1,675 per troy ounce and ranged between approximately $1,182 and $1,695 per troy ounce during the period, before ending the period December 2013 around $1,202/oz., a decrease of –28% for the 12-month period.

The U.S. dollar declined against both the euro and British pound during the period. For the period January 2013 through December 2013, the U.S. dollar decreased by approximately –4% to $1.37/euro. Versus the British pound, the U.S. dollar decreased by approximately –2% during the period to $1.66/ £.

For the year ended December 31, 2013, the Index posted a total return of 36.80% . Growth stocks, as represented by the Russell 2500 Growth Index, produced a total return of 40.65%, which outperformed value stocks, as represented by the Russell 2500 Value Index, which experienced a total return of 33.32% ¹.

1 The Russell 2500 Growth Index measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2500 Value Index measures the performance of the small to midcap value segment of the U.S. equity universe. It includes those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values.

10

Provide an illustration of the Fund’s investments.

Fund Composition*

* Illustrated by Sector and based on total net assets as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

11

How did the Fund perform during the reporting period?

Legacy Class A shares of the State Farm Small/Mid Cap Equity Fund had a total return of 33.92% without sales charges for the 1-year period ended December 31, 2013, compared to a 36.80% total return of the Russell 2500 Index. The line graphs and tables below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR		5 YEAR		Life of Class*		Ending Value of a $10,000 Investment**
Class A		27.36%		17.98%		5.32%	$	14,885
Class B		28.33%		18.24%		5.35%	$	14,919

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 The Russell 2500 Index measures the performance of the 2,500 smallest securities in the Russell 3000 Index, which represents approximately 20% of the total market capitalization of the Russell 3000 Index. Unlike an investment in the Small/Mid Cap Equity Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

12

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10, 000 Investment**
Legacy Class A		29.89	%		18.46	%		6.03	%	$	17,964
Legacy Class B		30.42	%		18.50	%		5.92	%	$	17,780
Institutional		34.25	%		19.47	%		6.63	%	$	19,009
Class R-1		33.53	%		18.82	%		7.44	%*	$	19,492
Class R-2		33.78	%		19.04	%		7.65	%*	$	19,844
Class R-3		34.19	%		19.38	%		7.99	%*	$	20,431

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

1 The Russell 2500 Index measures the performance of the 2,500 smallest securities in the Russell 3000 Index, which represents approximately 20% of the total market capitalization of the Russell 3000 Index. Unlike an investment in the Small/Mid Cap Equity Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

13

Performance Analysis

What factors helped and hindered performance during the reporting period?

During the 1-year period ended December 31, 2013, Bridgeway and Rainier generated portfolio returns (before fees and expenses) of 39.69% and 32.08%, respectively, compared to a 36.80% return for the Index over the same time period. Below are discussions concerning the performance and individual investments made by Bridgeway and Rainier during the course of the reporting period.

Bridgeway Capital Management, Inc. (52.30% of the Fund’s total investments)

The tables below show the securities that were the leading contributors and detractors to Bridgeway’s performance during the year as well as a recap of the top ten holdings within Bridgeway’s portion of the Fund.

Among the largest contributors to Bridgeway’s performance during the year were the following five holdings, with Sinclair Broadcast Group Inc. Class A, Nexstar Broadcasting Group Inc. Class A, and Saia Inc. each posting triple-digit gains and Conn’s Inc. and LIN Media LLC Class A each posting double-digit gains during the period.

Bridgeway - Top 5 Contributors

Security	Sector	% of  Bridgeway’s Total Investments as of 12/31/2013
Sinclair Broadcast Group Inc. Class A*	Consumer Discretionary		sold
Conn’s Inc.*	Consumer Discretionary		sold
Nexstar Broadcasting Group Inc. Class A*	Consumer Discretionary		sold
Saia Inc.	Industrials		1.0	%
LIN Media LLC Class A*	Consumer Discretionary		sold
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the largest detractors to Bridgeway’s performance during the year were the following five holdings, with all posting double-digit losses during the period.

Bridgeway - Top 5 Detractors

Security	Sector	% of  Bridgeway’s Total Investments as of 12/31/2013
Hovnanian Enterprises Inc. Class A*	Consumer Discretionary		sold
American Vanguard Corp.*	Materials		sold
Piper Jaffray Companies Inc.*	Financials		sold
EarthLink Inc.	Information Technology		0.7	%
Silicon Graphics International Corp.*	Information Technology		sold
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the top ten largest holdings within Bridgeway’s portion of the Fund, all posted double-digit gains during the period.

Bridgeway - Top 10 Holdings

Security	Sector	% of  Bridgeway’s Total Investments as of 12/31/2013
AMERCO	Industrials		1.7	%
Kindred Healthcare Inc.	Health Care		1.5	%
Unisys Corp.	Information Technology		1.5	%
Consolidated Graphics Inc.	Industrials		1.5	%
Men’s Wearhouse Inc., The	Consumer Discretionary		1.4	%
Stone Energy Corp.	Energy		1.4	%
Plexus Corp.	Information Technology		1.4	%
Cumulus Media Inc. Class A	Consumer Discretionary		1.3	%
Andersons Inc., The	Consumer Staples		1.3	%
Select Medical Holdings Corp.	Health Care		1.3	%

14

Rainier Investment Management, LLC (47.70% of the Fund’s total investments)

The tables below show the securities that were the leading contributors and detractors to Rainier’s performance during the year as well as a recap of the top ten holdings within Rainier’s portion of the Fund.

Among the largest contributors to Rainier’s performance during the year were the following five holdings, with all posting double-digit gains during the period.

Rainier - Top 5 Contributors

Security	Sector	% of  Rainier’s Total Investments as of 12/31/2013
United Rentals Inc.	Industrials		2.0	%
B/E Aerospace Inc.	Industrials		2.0	%
Actavis Inc.	Health Care		1.3	%
Illumina Inc.	Health Care		0.6	%
Fortune Brands Home & Security Inc.	Industrials		2.2	%

Among the largest detractors to Rainier’s performance during the year were the following five holdings, with all posting double-digit losses during the period.

Rainier - Top 5 Detractors

Security	Sector	% of  Rainier’s Total Investments as of 12/31/2013
ARIAD Pharmaceuticals Inc.*	Health Care		sold
Equinix Inc.*	Information Technology		sold
Mid-America Apartment Communities Inc.	Financials		1.0	%
Expedia Inc.*	Consumer Discretionary		sold
Citrix Systems Inc.*	Information Technology		sold
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the top ten largest holdings within Rainier’s portion of the Fund, all posted double-digit gains during the period.

Rainier - Top 10 Holdings

Security	Sector	% of Rainier’s Total Investments as of 12/31/2013
Oasis Petroleum Inc.	Energy		2.2	%
Fortune Brands Home & Security Inc.	Industrials		2.2	%
SM Energy Co.	Energy		2.1	%
Mohawk Industries Inc.	Consumer Discretionary		2.1	%
United Rentals Inc.	Industrials		2.0	%
B/E Aerospace Inc.	Industrials		2.0	%
Perrigo Co. PLC	Health Care		1.9	%
NXP Semiconductors NV	Information Technology		1.7	%
BorgWarner Inc.	Consumer Discretionary		1.7	%
Hexcel Corp.	Industrials		1.6	%

Financial highlights for this Fund can be found on pages 198-199.

15

State Farm International Equity Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The State Farm International Equity Fund (the “Fund”) is sub-advised by Marsico Capital Management, LLC. (“Marsico”) and Northern Cross, LLC (“Northern Cross”). Marsico and Northern Cross each manage approximately one-half of the Fund’s assets. State Farm Investment Management Corp. monitors the performance of the sub-advisers and the split of the Fund’s portfolio between the sub-advisers.The benchmark for the Fund is the MSCI All Country World Index (ACWI) ex-U.S. (the “Index”).

The Fund seeks long-term growth of capital and invests primarily in large cap stocks in developed international markets. Marsico invests its portion of the Fund primarily in foreign equity securities issued by companies that it selects for their long-term growth potential. Northern Cross invests its portion of the Fund primarily in foreign equity securities issued by companies that it believes have the potential for long-term margin expansion.

Marsico may invest its portion of the Fund in an unlimited number of companies of any size throughout the world, and normally invests in the securities of issuers that are economically tied to at least four different foreign countries. In selecting investments for the Fund, Marsico uses an approach that combines ‘top-down’ macroeconomic analysis with ‘bottom-up’ stock selection. Northern Cross focuses on equities priced cheaply relative to some financial measure of worth, such as ratios of price to earnings, price to sales or price to cash flow. Under normal market conditions Northern Cross will invest its portion of the Fund in 60-80 companies with a diversified representation of sectors. In selecting securities for the Fund, Northern Cross gives careful consideration to currency, political stability and other effects of international investing.The Fund allows investments in emerging or developing markets.As of December 31, 2013, the Fund had 10.00% of total net assets invested in emerging markets.

Describe the relevant market environment as it relates to the Fund for the reporting period.

International equity markets, as represented by the Index, had a total return of 15.29% for the reporting period, underperforming U.S. equity markets. Despite several challenging factors, including a sovereign debt crisis in parts of Europe and slowing economic growth in China, Brazil, and India, an improvement in equity valuations helped to provide positive returns of overseas markets.All performance information included in this discussion is quoted in U.S. dollars.

Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in global Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

Throughout the year, oil and gold prices were volatile. Oil prices began the period at around $92/barrel and ranged between approximately $87 and $111/barrel during the period, before ending the period December 2013 around $98/barrel, an increase of 7% for the 12-month period. Gold prices began the period at around $1,675 per troy ounce and ranged between approximately $1,182 and $1,695 per troy ounce during the period, before ending the period December 2013 around $1,202/oz., a decrease of –28% for the 12-month period.

The U.S. dollar declined against both the euro and British pound during the period. For the period January 2013 through December 2013, the U.S. dollar decreased by approximately –4% to $1.37/euro. Versus the British pound, the U.S. dollar decreased by approximately –2% during the period to $1.66/ £.

From an individual country perspective, developed European markets like Finland and Ireland were among the strongest performing markets, increasing 46.04% and 41.15%, respectively, in U.S. dollar terms. Meanwhile, Singapore was the weakest performing country in the developed markets, experiencing a gain of 1.7% in U.S. dollar terms. Stock market performance in emerging market countries was weaker than the major developed markets during the period with the MSCI Emerging Markets Index posting a total return of –2.60% in U.S. dollar terms. Emerging market countries such as India and Brazil declined –3.83% and –16.04%, respectively, while China gained 3.64% in U.S. dollar terms during the period.

16

Provide an illustration of the Fund’s investments.

Fund Composition*

* Illustrated by Country and based on total net assets as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

** Represents 14 other countries, each of which represents less than 2% of net assets.

17

How did the Fund perform during the reporting period?

For the 1-year ended December 31, 2013, Legacy Class A shares of the State Farm International Equity Fund had a total return of 17.53% without sales charges compared to a 15.29% total return for the MSCI ACWI ex-U.S. Index.The line graphs and tables below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		11.62	%		11.57	%		1.02	%	$	10,811
Class B		12.16	%		11.83	%		1.09	%	$	10,865

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 The MSCI All Country World Index (ex-U.S.) (MSCI ACWI ex-U.S. Index) is a free float adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the United States. As of December 31, 2013, the MSCI AWCI ex-U.S. Index consisted of 43 developed and emerging market country indices. Unlike an investment in the International Equity Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

18

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		13.97	%		12.10	%		4.86	%		16,067
Legacy Class B		13.99	%		12.04	%		4.75	%		15,907
Institutional		17.81	%		13.06	%		5.47	%		17,025
Class R-1		17.14	%		12.38	%		5.27	%*		16,127
Class R-2		17.40	%		12.59	%		5.49	%*		16,439
Class R-3		17.74	%		12.97	%		5.79	%*		16,879

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

1 The MSCI All Country World Index (ex-U.S.) (MSCI ACWI ex-U.S. Index) is a free float adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the United States. As of December 31, 2013, the MSCI AWCI ex-U.S. Index consisted of 43 developed and emerging market country indices. Unlike an investment in the International Equity Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

19

Performance Analysis

What factors helped and hindered performance during the reporting period?

During the 1-year period ended December 31, 2013, Marsico and Northern Cross each individually generated double-digit total returns, with Marsico’s portion of the Fund outperforming Northern Cross’ portion of the Fund. Below are discussions concerning individual investments made by Marsico and Northern Cross during the course of the reporting period.

Marsico Capital Management, LLC (50.61% of the Fund’s total investments)

The tables below show the securities that were the leading contributors and detractors to Marsico’s performance during the year as well as a recap of the top ten holdings within Marsico’s portion of the Fund.

Among the largest contributors to Marsico’s performance during the year were the following five holdings, with Yandex NV Class A and Rakuten Inc. each posting triple-digit gains, while the remainder posted double-digit gains during the period.

Marsico - Top 5 Contributors

Security	Sector	% of Marsico’s Total Investments as of 12/31/2013
Yandex NV Class A	Information Technology		2.8	%
Rakuten Inc.	Consumer Discretionary		3.0	%
MasterCard Inc. Class A	Information Technology		3.0	%
Roche Holding AG	Health Care		4.0	%
Naspers Ltd. Class N	Consumer Discretionary		2.9	%

Among the largest detractors to Marsico’s performance during the year were the following five holdings, with all posting double-digit losses during the period.

Marsico - Top 5 Detractors

Security	Sector	% of Marsico’s Total Investments as of 12/31/2013
DeNA Co. Ltd.*	Information Technology		sold
BR Malls Participacoes SA	Financials		1.1	%
Tullow Oil PLC*	Energy		sold
Lululemon Athletica Inc.	Consumer Discretionary		3.2	%
Remy Cointreau SA	Consumer Staples		1.5	%
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the top ten largest holdings within Marsico’s portion of the Fund, Liberty Global PLC Series C,ASML Holding NV, Canadian Pacific Railway Ltd., Roche Holding AG, Rolls-Royce Holdings PLC, and The Swatch Group AG all posted double-digit gains during the period. Suncor Energy Inc. posted a single-digit gain while Schlumberger Ltd. and Telecity Group PLC each posted single-digit declines and Lululemon Athletica Inc. posted a double-digit decline during the period.

Marsico - Top 10 Holdings

Security	Sector	% of Marsico’s Total Investment as of 12/31/2013
Liberty Global PLC Series C	Consumer Discretionary		4.2	%
Schlumberger Ltd.	Energy		4.2	%
ASML Holding NV	Information Technology		4.1	%
Canadian Pacific Railway Ltd.	Industrials		4.1	%
Roche Holding AG	Health Care		4.0	%
Telecity Group PLC	Information Technology		3.8	%
Rolls-Royce Holdings PLC	Industrials		3.5	%
Lululemon Athletica Inc.	Consumer Discretionary		3.2	%
Swatch Group AG, The	Consumer Discretionary		3.1	%
Suncor Energy Inc.	Energy		3.1	%

20

Northern Cross, LLC (49.39% of the Fund’s total investments)

The tables below show the securities that were the leading contributors and detractors to Northern Cross’ performance during the year as well as a recap of the top ten holdings within Northern Cross’ portion of the Fund.

Among the largest contributors to Northern Cross’ performance during the year were the following five holdings, with all posting double-digit gains during the period.

Northern Cross - Top 5 Contributors

Security	Sector	% of Northern Cross’ Total Investments as of 12/31/2013
AXA SA	Financials		3.1	%
Lloyds Banking Group PLC	Financials		2.4	%
Roche Holding AG	Health Care		2.8	%
Daimler AG Registered Shares	Consumer Discretionary		1.8	%
Rolls-Royce Holdings PLC	Industrials		2.3	%

Among the largest detractors to Northern Cross’ performance during the year were the following five holdings, with all posting double-digit losses during the period except Fanuc Corp., which posted a single-digit loss during the period.

Northern Cross - Top 5 Detractors

Security	Sector	% of Northern Cross’ Total Investments as of 12/31/2013
Anglo American PLC	Materials		0.7	%
Fanuc Corp.	Industrials		2.5	%
Banco Bradesco SA	Financials		1.0	%
PetroChina Company Ltd. H	Energy		0.6	%
BHP Billiton PLC*	Materials		sold
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the top ten largest holdings within Northern Cross’ portion of the Fund, all posted double-digit gains during the period except SAP AG, which posted a single-digit gain and Fanuc Corp., which posted a single-digit loss during the period.

Northern Cross - Top 10 Holdings

Security	Sector	% of Northern Cross’ Total Investments as of 12/31/2013
AXA SA	Financials		3.1	%
Banco Bilbao Vizcaya Argentaria SA	Financials		2.9	%
Roche Holding AG	Health Care		2.8	%
Fanuc Corp	Industrials		2.5	%
Lloyds Banking Group PLC	Financials		2.4	%
Rolls-Royce Holdings PLC	Industrials		2.3	%
Anheuser-Busch InBev NV	Consumer Staples		2.3	%
SAP AG	Information Technology		2.3	%
Linde AG	Materials		2.2	%
Nestle SA Reg.	Consumer Staples		2.2	%

Financial highlights for this Fund can be found on pages 200-201.

21

State Farm S&P 500 Index Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The State Farm S&P 500 Index Fund (the “Fund”) seeks to approximate as closely as possible, before fees and expenses, the capitalization-weighted total rate of return of the Standard & Poor’s 500 Stock Index¹ (the “Index”).The Index tracks the common stock performance of 500 selected large U.S. companies in leading industries, and most of the common stocks in the Index are listed on the New York Stock Exchange.The weightings of stocks in the Index are based on each stock’s relative total float-adjusted market capitalization (stock price multiplied by the number of investable shares outstanding).The percentage of the Fund’s assets invested in a given stock is approximately the same as the percentage such stock represents in the Index.

BlackRock Fund Advisors (BlackRock) serves as the investment sub-adviser to the Fund. State Farm Investment Management Corp. monitors the performance of BlackRock in sub-advising the Fund.

Describe the relevant market environment as it related to the Fund for the reporting period.

In the U.S., equity markets (as represented by the S&P 500 Index) achieved positive total returns in ten of the past twelve months ended December 31, 2013.Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations. In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

Throughout the year, oil and gold prices were volatile. Oil prices began the period at around $92/barrel and ranged between approximately $87 and $111/barrel during the period, before ending the period December 2013 around $98/barrel, an increase of 7% for the 12-month period. Gold prices began the period at around $1,675 per troy ounce and ranged between approximately $1,182 and $1,695 per troy ounce during the period, before ending the period December 2013 around $1,202/oz., a decrease of –28% for the 12-month period.

The 12-month total return for the S&P 500 Index was 32.39% for the period ended December 31, 2013.The total return for the period reflected an increase in corporate earnings per share for the S&P 500 Index companies of approximately 8%, an expansion of the price/earnings valuation of the S&P 500 Index of approximately 20%, and a dividend return of approximately 2.3% .

1 The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by State Farm Mutual Fund Trust (“Licensee”). Standard & Poor’s^® , S&P^® and S&P 500^® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Licensee. The Licensee’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

22

Provide an illustration of the Fund’s investments.

Fund Composition*

* Illustrated by Sector and based on total net assets as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

23

How did the Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm S&P 500 Index Fund had a total return of 31.42% without sales charges compared to a 32.39% total return for the S&P 500 Index.The line graphs and tables below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		24.93	%		15.93	%		5.44	%	$	15,007
Class B		25.41	%		16.07	%		5.40	%	$	14,972

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 The S&P 500 Index tracks the common stock performance of large U.S. companies in the manufacturing, utilities, transportation, and financial industries. In total, the S&P 500 is comprised of 500 common stocks. Unlike an investment in the S&P 500 Index Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

24

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		27.51	%		16.38	%		6.30	%	$	18,424
Legacy Class B		27.97	%		16.43	%		6.20	%	$	18,252
Institutional		31.73	%		17.44	%		6.92	%	$	19,529
Class R-1		31.01	%		16.76	%		6.58	%*	$	18,087
Class R-2		31.22	%		16.98	%		6.78	%*	$	18,403
Class R-3		31.61	%		17.32	%		7.12	%*	$	18,949

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

1 The S&P 500 Index tracks the common stock performance of large U.S. companies in the manufacturing, utilities, transportation, and financial industries. In total, the S&P 500 is comprised of 500 common stocks. Unlike an investment in the S&P 500 Index Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

25

Performance Analysis

What factors helped and hindered performance during the reporting period?

The Fund satisfactorily tracked the total return of the Index in 2013, before fees and expenses that are not found within the Index. The Index finished the year with a total return of 32.39%. All of the Index’s sectors posted gains greater than 10%.

Index Sector Performance

Sector	Index Weighting as of 12/31/2013	2013 Gain
Information Technology	18.6%		28	%
Financials	16.2%		36	%
Health Care	13.0%		41	%
Consumer Discretionary	12.5%		43	%
Industrials	10.9%		41	%
Energy	10.3%		25	%
Consumer Staples	9.8%		26	%
Materials	3.5%		26	%
Utilities	2.9%		13	%
Telecommunication Services	2.3%		11	%

The Fund’s top ten holdings had a positive year, with 9 holdings posting double-digit gains and 1 holding (Apple Inc.) posting a single-digit gain.

Top 10 Holdings

Security	Sector	% of Net Assets as of 12/31/2013
Apple Inc.	Information Technology		3.0	%
Exxon Mobil Corp.	Energy		2.6	%
Google Inc. Class A	Information Technology		1.8	%
Microsoft Corp.	Information Technology		1.7	%
General Electric Co.	Industrials		1.7	%
Johnson & Johnson	Health Care		1.5	%
Chevron Corp.	Energy		1.4	%
Procter & Gamble Co., The	Consumer Staples		1.3	%
JPMorgan Chase & Co.	Financials		1.3	%
Wells Fargo & Co.	Financials		1.3	%

Financial highlights for this Fund can be found on pages 202-203.

26

State Farm Small Cap Index Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The Small Cap Equity Index Fund (the “Fund”) seeks to approximate as closely as possible, before fees and expenses, the capitalization-weighted total rate of return of the Russell 2000 Index¹ (the “Index”). The Index measures the performance of the small-capitalization sector of the U.S. equity market and consists of the smallest 2,000 companies in the Russell 3000 Index². The weightings of stocks in the Index are based on each stock’s relative total market capitalization (stock price multiplied by the number of shares outstanding).

The Fund is sub-advised by Northern Trust Investments, N.A. (“Northern Trust”). State Farm Investment Management Corp. monitors the investment performance of Northern Trust in sub-advising the Fund.

Describe the relevant market environment as it related to the Fund for the reporting period.

Major U.S. equity market indexes were positive during 2013 as small capitalization stocks, as represented by the Index, finished the reporting period with a total return of 38.82%. Similarly, large capitalization stocks, as represented by the Russell 1000 Index³, had a total return of 33.11% for the year.

Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations. In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

Throughout the year, oil and gold prices were volatile. Oil prices began the period at around $92/barrel and ranged between approximately $87 and $111/barrel during the period, before ending the period December 2013 around $98/barrel, an increase of 7% for the 12-month period. Gold prices began the period at around $1,675 per troy ounce and ranged between approximately $1,182 and $1,695 per troy ounce during the period, before ending the period December 2013 around $1,202/oz., a decrease of –28% for the 12-month period.

1 Russell Investment Group (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell 2000^® Index. Russell^® is a trademark of Russell. The State Farm Small Cap Index Fund (the “Fund”) is not sponsored, endorsed, sold or promoted by, nor in any way affiliated with Russell. Russell is not responsible for and has not reviewed the Fund nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.

2 The Russell 3000 Index is composed of 3000 large U.S. Companies, as determined by market capitalization. The Russell 3000 Index represents approximately 98% of the investable U.S. equity market. The Russell 3000 Index is comprised of stocks within the Russell 1000 and the Russell 2000 Indices.

3 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 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market.

27

Provide an illustration of the Fund’s investments.

Fund Composition*

* Illustrated by Sector and based on total net assets as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

28

How did the Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm Small Cap Index Fund had a total return of 37.63% without sales charges compared to a 38.82% total return for the Russell 2000 Index.The line graphs and tables below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		30.65	%		17.82	%		5.43	%	$	14,995
Class B		31.84	%		18.02	%		5.41	%	$	14,977

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 The Russell 2000 Index tracks the common stock performance of the 2,000 smallest U.S. companies in the Russell 3000 Index, which represents approximately 10% of the total capitalization of the Russell 3000 Index. Unlike an investment in the Small Cap Index Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

29

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		33.48	%		18.28	%		7.72	%	$	21,045
Legacy Class B		34.14	%		18.34	%		7.62	%	$	20,844
Institutional		37.96	%		19.33	%		8.35	%	$	22,303
Class R-1		37.25	%		18.67	%		7.99	%*	$	20,443
Class R-2		37.44	%		18.88	%		8.19	%*	$	20,800
Class R-3		37.86	%		19.22	%		8.53	%*	$	21,406

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

¹  The Russell 2000 Index tracks the common stock performance of the 2,000 smallest U.S. companies in the Russell 3000 Index, which represents approximately 10% of the total capitalization of the Russell 3000 Index. Unlike an investment in the Small Cap Index Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

30

Performance Analysis

What factors helped and hindered performance during the reporting period?

The Fund’s return satisfactorily tracked the return of the Index in 2013, before fees and expenses that are not found within the Index.

Within the Index, all of the ten industry sectors produced double-digit gains as illustrated below.

Index Sector Performance

Sector	Index Weighting as  of 12/31/2013			2013 Gain
Financials		22.77	%		30	%
Information Technology		17.81	%		44	%
Industrials		14.50	%		44	%
Consumer Discretionary		13.75	%		45	%
Health Care		13.24	%		51	%
Energy		5.46	%		30	%
Materials		4.91	%		24	%
Consumer Staples		3.80	%		46	%
Utilities		3.01	%		18	%
Telecommunication Services		0.75	%		28	%

The Fund’s top ten holdings had a positive year, with 3 holdings - Costar Group Inc.,Align Technology Inc. and ISIS Pharmaceuticals Inc. - posting triple-digit gains and the remaining 7 holdings posting gains greater than 50%.

Top 10 Holdings

Security	Sector	% of Net  Assets as of 12/31/2013
Costar Group Inc.	Information Technology		0.3	%
athenahealth Inc.	Healthcare		0.3	%
Acuity Brands Inc.	Industrials		0.3	%
Middleby Corp	Industrials		0.3	%
ISIS Pharmaceuticals Inc.	Healthcare		0.3	%
PTC Inc.	Information Technology		0.3	%
Ultimate Software Group Inc.	Information Technology		0.2	%
Brunswick Corp.	Consumer Discretionary		0.2	%
Align Technology Inc.	Healthcare		0.2	%
CNO Financial Group Inc.	Financials		0.2	%

The annual reconstitution of holdings within the Russell indices occurred on June 28, 2013. For the Index, the one-time 2013 reconstitution resulted in 170 companies being added to the Index while 119 companies were removed from the Index, a turnover of 14.15%.

Financial highlights for this Fund can be found on pages 204-205.

31

State Farm International Index Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The State Farm International Index Fund (the “Fund”) seeks investment results that approximate as closely as possible the price and yield performance, before fees and expenses, of the Morgan Stanley Capital International EAFE Free Index¹ (the “Index”).The Index is a capitalization-weighted index that currently includes stocks of companies located in 15 European countries,Australia, New Zealand, Israel, Hong Kong, Japan and Singapore.

The Fund is sub-advised by Northern Trust Investments, N.A. (“Northern Trust”). State Farm Investment Management Corp. monitors the investment performance of Northern Trust in sub-advising the Fund.

Describe the relevant market environment as it related to the Fund for the reporting period.

International equity markets, as represented by the Index, had a total return of 22.78% for the reporting period, underperforming U.S. equity markets. Despite several challenging factors, including a sovereign debt crisis in parts of Europe and slowing economic growth in China, Brazil, and India, an improvement in equity valuations helped to provide positive returns of overseas markets.All performance information included in this discussion is quoted in U.S. dollars.

Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in global Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

Throughout the year, oil and gold prices were volatile. Oil prices began the period at around $92/barrel and ranged between approximately $87 and $111/barrel during the period, before ending the period December 2013 around $98/barrel, an increase of 7% for the 12-month period. Gold prices began the period at around $1,675 per troy ounce and ranged between approximately $1,182 and $1,695 per troy ounce during the period, before ending the period December 2013 around $1,202/oz., a decrease of –28% for the 12-month period.

The U.S. dollar declined against both the euro and British pound during the period. For the period January 2013 through December 2013, the U.S. dollar decreased by approximately –4% to $1.37/euro. Versus the British pound, the U.S. dollar decreased by approximately –2% during the period to $1.66/ £.

Within the Index, developed European markets like Finland and Ireland were among the strongest performing markets, rising 46.04% and 41.15%, respectively, in U.S. dollar terms. Meanwhile, the United Kingdom – the largest country weighting in the MSCI EAFE Free Index at 22.0%, increased 20.67% in U.S. dollar terms.

1 The EAFE^® Free Index is a trademark, service mark and the exclusive property of Morgan Stanley Capital International, Inc. (“MSCI”) and its affiliates and has been licensed for use by the State Farm Mutual Fund Trust (the “Trust”). The State Farm International Index Fund (the “Fund”), based on the EAFE Free Index, has not been passed on by MSCI as to its legality or suitability, and is not issued, sponsored, endorsed, sold or promoted by MSCI. MSCI makes no warranties and bears no liability with respect to the Fund. MSCI has no responsibility for and does not participate in the management of the Fund assets or sale of the Fund shares. The Trust’s Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with the Trust and the Fund.

32

Provide an illustration of the Fund’s investments.

Fund Composition*

* Illustrated by Country and based on total net assets as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

** Represents 11 other countries, each of which represents less than 2% of net assets.

33

How did the Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm International Index Fund had a total return of 20.43% without sales charges compared to a 22.78% total return for the MSCI EAFE Free Index.The line graphs and tables below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		14.37	%		9.77	%		1.25	%	$	11,000
Class B		14.71	%		9.90	%		1.22	%	$	10,972

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE Free) Index currently measures the performance of stock marketsof Europe, Australia, New Zealand, and the Far East. Historically, the EAFE Free took into account local market restrictions on share ownership by foreigners. Unlike an investment in the International Index Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

34

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR		5 YEAR		10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		16.77%		10.25%		5.56%		$	17,173
Legacy Class B		16.92%		10.18%		5.47%		$	17,026
Institutional		20.63%		11.19%		6.18%		$	18,220
Class R-1		19.97%		10.56%		5.61%	*	$	16,610
Class R-2		20.23%		10.77%		5.81%	*	$	16,900
Class R-3		20.53%		11.08%		6.12%	*	$	17,377

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

1 The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE Free) Index currently measures the performance of stock marketsof Europe, Australia, New Zealand, and the Far East. Historically, the EAFE Free took into account local market restrictions on share ownership by foreigners. Unlike an investment in the International Index Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

35

Performance Analysis

What factors helped and hindered performance during the reporting period?

The Fund’s return satisfactorily tracked the return of the Index in 2013,before fees and expenses that are not found within the Index. Within the Index, all of the industry sectors produced gains as illustrated below.

Index Sector Performance

Sector	Index Weighting as of 12/31/2013			2013 Gain
Financials		25.63	%		24	%
Industrials		12.92	%		25	%
Consumer Discretionary		11.93	%		35	%
Consumer Staples		10.93	%		17	%
Health Care		10.03	%		28	%
Materials		8.02	%		3	%
Energy		6.84	%		12	%
Telecommunication Services		5.69	%		46	%
Information Technology		4.52	%		27	%
Utilities		3.51	%		14	%

Of the top ten countries in the Index, all posted gains in 2013 as illustrated below.

Top 10 Countries

Country	Index Weighting as  of 12/31/2013			2013 Gain
United Kingdom		21.95	%		20.7	%
Japan		20.92	%		27.2	%
France		10.03	%		26.3	%
Germany		9.49	%		31.4	%
Switzerland		8.91	%		26.6	%
Australia		7.45	%		4.2	%
Spain		3.36	%		31.3	%
Sweden		3.24	%		24.5	%
Hong Kong		2.84	%		11.1	%
Netherlands		2.72	%		31.3	%

Among the Fund’s ten largest holdings as of December 31, 2013, performance was positive for the reporting period.All ten holdings posted positive returns, eight of which were double-digit gains.Two holdings (Royal Dutch Shell PLC Class A and HSBC Holdings PLC) posted single-digit gains.

Top 10 Holdings

Security	Sector	% of Net  Assets as of 12/31/2013
Nestle SA Reg.	Consumer Staples		1.8	%
HSBC Holdings PLC	Financials		1.5	%
Roche Holding AG	Health Care		1.5	%
Vodafone Group PLC	Telecommunication Services		1.4	%
Novartis AG	Health Care		1.4	%
Toyota Motor Corp.	Consumer Discretionary		1.3	%
BP PLC	Energy		1.1	%
Royal Dutch Shell PLC Class A	Energy		1.0	%
Total SA	Energy		1.0	%
GlaxoSmithKline PLC	Health Care		1.0	%

Financial highlights for this Fund can be found on pages 206-207.

36

State Farm Equity and Bond Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The State Farm Equity and Bond Fund (the “Fund”) is managed with a combination of stocks and bonds in the pursuit of long-term growth of principal while providing some current income.

The Fund invests all of its assets in shares of the State Farm Equity Fund (the “Equity Fund”) and the State Farm Bond Fund (the “Bond Fund”, and together with the Equity Fund, an “Underlying Fund”). Effort is made to maintain an investment mix of approximately 60% of assets in the Equity Fund and 40% of assets in the Bond Fund. The Fund never invests more than 75% of its net assets in either Underlying Fund.

Describe the relevant market environment as it related to the Fund for the reporting period.

Because the Fund does not invest directly in individual stocks and bonds, the merits of the individual investments are evaluated separately by each Underlying Fund’s managers.You may wish to refer to the Management’s Discussion of Fund Performance for the Equity Fund and the Bond Fund in addition to the commentary provided here.

In the U.S., equity markets (as represented by the S&P 500 Index) achieved positive total returns in ten of the past twelve months ended December 31, 2013.Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations. In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

Throughout the year, oil and gold prices were volatile. Oil prices began the period at around $92/barrel and ranged between approximately $87 and $111/barrel during the period, before ending the period December 2013 around $98/barrel, an increase of 7% for the 12-month period. Gold prices began the period at around $1,675 per troy ounce and ranged between approximately $1,182 and $1,695 per troy ounce during the period, before ending the period December 2013 around $1,202/oz., a decrease of –28% for the 12-month period.

The U.S. dollar declined against both the euro and British pound during the period. For the period January 2013 through December 2013, the U.S. dollar decreased by approximately –4% to $1.37/euro. Versus the British pound, the U.S. dollar decreased by approximately –2% during the period to $1.66/ £.

The 12-month total return for the S&P 500 Index was 32.39% for the period ended December 31, 2013.The total return for the period reflected an increase in corporate earnings per share for the S&P 500 Index companies of approximately 8%, an expansion of the price/earnings valuation of the S&P 500 Index of approximately 20%, and a dividend return of approximately 2.3%.

Growth stocks, as represented by the Russell 1000 Growth Index, produced a total return of 33.48%, which outperformed value stocks, as represented by the Russell 1000 Value Index, which experienced a total return of 32.53%.

Within the bond markets, prices of U.S.Treasuries declined as concerns grew that the Federal Reserve might start reducing the amount of its asset-purchase programs sooner than expected by the markets. Over the entire 12-months, the yield on 10-year U.S. Treasuries rose from 1.78% at the beginning of the period to a high of 3.04% on December 31, 2013. Short-term yields remained low, with 3-month U.S.Treasury yields increasing 2 basis points from 0.05% at the beginning of the period to 0.07% on December 31, 2013.

37

Overall, for the year ended December 31, 2013, while all major components posted negative total returns, securitized credit generally outperformed corporate bonds and U.S.Treasuries in the Barclays U.S.Aggregate Bond Index (the “Aggregate Bond Index”). For the 1-year period, the total return on securitized credit in the Aggregate Bond Index was –1.31%, compared to total returns of –1.53% and –2.75%, respectively, on corporate bonds and U.S.Treasuries in the Aggregate Bond Index.Among corporate bond sectors within the Aggregate Bond Index, financial institution bonds had a total return of 0.93%, while industrial bonds and utility bonds generated total returns of –2.62% and –3.19%, respectively for the year.

From a maturity perspective, short-maturity corporate bonds outperformed both intermediate and longer-maturity bonds in the Aggregate Bond Index during the year.The total return on 1-3 year corporate bonds in the Aggregate Bond Index was 1.71% compared to a total return of 0.36% and –6.45% on 5-7 year corporate bonds in the Aggregate Bond Index and 20+ year corporate bonds in the Aggregate Bond Index, respectively.Among U.S.Treasuries within the Aggregate Bond Index, short-maturity U.S.Treasuries outperformed both intermediate- and longer-maturity U.S.Treasuries. For the 1-year period, the total return on 1-3 year U.S.Treasuries in the Aggregate Bond Index was 0.36% compared to a total return of –3.60% and –13.88% on 5-7 year U.S. Treasuries in the Aggregate Bond Index and 20+ year U.S.Treasuries in the Aggregate Bond Index, respectively.

From a credit quality standpoint, in the Aggregate Bond Index the range of total returns for the year was narrow with Aaa-rated, Aa-rated,A-rated, and Baa-rated securities in the Aggregate Bond Index generating total returns of –2.06%, –2.02%, –1.86%, and –1.96%, respectively, for the year.Among corporate bonds within the Aggregate Bond Index, Baa-rated securities were the best performing credit sector within the Aggregate Bond Index on a relative basis, generating a total return of –0.93% compared to Aaa-rated,Aa-rated, and A-rated securities, which had total returns of –4.69%, –2.42%, and –1.86%, respectively, for the year¹.

Provide an illustration of the Fund’s investments.

Fund Composition*

* Illustrated by Type of Security and based on total net assets as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

1 Source: Barclays Live

38

How did the Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm Equity and Bond Fund had a total return of 17.46% without sales charges. Because of the nature of the Fund (invests solely in the Institutional share class of two Underlying Funds), a blended benchmark is used for comparison purposes.The benchmark used is a combination of 60% S&P 500 Index and 40% Barclays U.S.Aggregate Bond Index (rebalanced on a monthly basis).The total return of the blended benchmark was 17.56% for the 1-year period ended December 31, 2013.The line graphs and tables below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		11.61	%		10.34	%		3.39	%	$	12,915
Class B		11.74	%		10.48	%		3.42	%	$	12,944

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 See footnotes for the Equity Fund and the Bond Fund for a description of their underlying Indices.

²  State Farm Investment Management Corp. computes the Blended Benchmark using 60% S&P 500 Index and 40% Barclays U.S. Aggregate Bond Index. Unlike an investment in the Equity and Bond Fund, a theoretical investment in the Indices or Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

39

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		13.94	%		10.76	%		4.24	%	$	15,150
Legacy Class B		14.06	%		10.75	%		4.14	%	$	15,007
Institutional		17.78	%		11.74	%		4.85	%	$	16,065
Class R-1		17.07	%		11.13	%		4.36	%*	$	14,868
Class R-2		17.33	%		11.34	%		4.56	%*	$	15,139
Class R-3		17.76	%		11.67	%		4.88	%*	$	15,581

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

1 See footnotes for the Equity Fund and the Bond Fund for a description of their underlying Indices.

2 State Farm Investment Management Corp. computes the Blended Benchmark using 60% S&P 500 Index and 40% Barclays U.S. Aggregate Bond Index. Unlike an investment in the Equity and Bond Fund, a theoretical investment in the Indices or Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

40

Performance Analysis

What factors helped and hindered performance during the reporting period?

As discussed above, the Equity and Bond Fund invests solely in the Institutional share class of the Underlying Funds – the Equity Fund and the Bond Fund. Generally, the Equity and Bond Fund attempts to maintain approximately 60% of its net assets in shares of the Equity Fund and approximately 40% of its net assets in shares of the Bond Fund. For the 1-year period ended December 31, 2013, Institutional shares of the Equity Fund and the Bond Fund returned 32.74% and –3.45% after expenses, respectively.

Equity portion of the Fund (approximately 60% throughout the period)

The Equity Fund is sub-advised by Bridgeway Capital Management, Inc. (“Bridgeway”) and Westwood Management Corp.

(“Westwood”). Bridgeway and Westwood each manage approximately one-half of the Equity Fund’s assets. State Farm Investment Management Corp. monitors the performance of the sub-advisers and the split of the Equity Fund’s portfolio between the sub-advisers.The benchmark for the Equity Fund is the S&P 500 Index.

The Equity Fund seeks long-term growth of capital. In doing so, the Equity Fund invests primarily in large capitalization stock issued by U.S. companies. Bridgeway defines “large stocks” as the largest 1,000 U.S. companies as measured by market capitalization (stock market worth).Westwood defines large capitalization companies as those companies with market capitalizations greater than $5 billion at the time of purchase. Bridgeway selects stocks using its proprietary, quantitative investment models to identify stocks within the large-cap growth category for the Equity Fund. Growth stocks are those that Bridgeway believes have above average prospects for economic growth.Westwood invests in a portfolio of seasoned companies utilizing a value style of investing in which it chooses those stocks that Westwood believes have earnings prospects that are currently undervalued by the market relative to some financial measure of worth, such as the ratio of price to earnings, price to sales or price to cash flow.Westwood defines seasoned companies as those that generally have been operating for at least three years.

During the 1-year period ended December 31, 2013, Bridgeway and Westwood generated portfolio returns (before fees and expenses) of 37.40% and 30.49%, respectively, compared to a 32.39% return for the S&P 500 Index over the same time period. Below are discussions concerning the individual investments made by Bridgeway and Westwood during the course of the reporting period.

Bridgeway Capital Management, Inc. (51.71% of the Equity Fund’s total investments)

The tables below show the securities that were the leading contributors and detractors to Bridgeway’s performance during the year as well as a recap of the top ten holdings within Bridgeway’s portion of the Equity Fund.

Among the largest contributors to Bridgeway’s performance during the year were the following five holdings, with all posting double-digit gains during the period.

Bridgeway - Top 5 Contributiors

Security	Sector	% of  Bridgeway’s Total Investments as of 12/31/2013
Regeneron Pharmaceuticals Inc.	Health Care		1.8	%
Western Digital Corp.	Information Technology		1.2	%
Alliance Data Systems Corp.	Information Technology		2.1	%
Seagate Technology PLC	Information Technology		1.5	%
Celgene Corp.*	Health Care		sold
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

41

Among the largest detractors to Bridgeway’s performance during the year were the following five holdings, with all posting double-digit losses during the period except Exelon Corp., which posted a single-digit loss during the period.

Bridgeway - Top 5 Detractors

Security	Sector	% of Bridgeway’s Total Investments as of 12/31/2013
Rackspace Hosting Inc.	Information Technology		0.6	%
Cliffs Natural Resources Inc.*	Materials		sold
Tenet Healthcare Corp.*	Health Care		sold
Pioneer Natural Resources Co.	Energy		1.1	%
Exelon Corp.	Utilities		1.0	%
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the top ten largest holdings within Bridgeway’s portion of the Equity Fund, all posted double-digit gains during the period except Applee Inc. and Goodyear Tire & Rubber Co., which each posted single-digit gains during the year.

Bridgeway - Top 10 Holdings

Security	Sector	% of Bridgeway’s Total Investments as of 12/31/2013
Apple Inc.	Information Technology		2.6	%
Goodyear Tire & Rubber Co., The	Consumer Discretionary		2.1	%
Alliance Data Systems Corp.	Information Technology		2.1	%
Sherwin-Williams Co., The	Materials		1.9	%
Regeneron Pharmaceuticals Inc.	Health Care		1.8	%
Seagate Technology PLC	Information Technology		1.5	%
Delta Air Lines Inc.	Industrials		1.4	%
Delphi Automotive PLC	Consumer Discretionary		1.4	%
Marathon Petroleum Corp.	Energy		1.4	%
Safeway Inc.	Consumer Staples		1.3	%

Westwood Management Corp. (48.29% of the Equity Fund’s total investments)

The tables below show the securities that were the leading contributors and detractors to Westwood’s performance during the year as well as a recap of the top ten holdings within Westwood’s portion of the Equity Fund.

Among the largest contributors to Westwood’s performance during the year were the following five holdings, with all posting double-digit gains during the period.

Westwood - Top 5 Contributors

Security	Sector	% of Westwood’s Total Investments as of 12/31/2013
American International Group Inc.	Financials		2.0	%
Hartford Financial Services Group Inc., The	Financials		2.1	%
Boeing Co., The	Industrials		1.3	%
Advance Auto Parts Inc.	Consumer Discretionary		2.0	%
Viacom Inc. Class B	Consumer Discretionary		2.1	%

42

Among the largest detractors to Westwood’s performance during the year were the following five holdings, with all posting single-digit losses during the period except Ventas Inc., which posted a double-digit loss during the period.

Westwood - Top 5 Detractors

Security	Sector	% of Westwood’s Total Investment as of 12/31/2013
Ventas Inc	Financials		1.0	%
Aflac Inc.*	Financials		sold
DaVita HealthCare Partners Inc.*	Health Care		sold
EOG Resources Inc.	Energy		0.9	%
EMC Corp.*	Information Technology		sold
*      Sold prior to 12/31/2013. Price change referenced is from 1/1/2013 to date sold.

Among the top ten largest holdings within Westwood’s portion of the Equity Fund, all posted double-digit gains during the period except Target Corp., which posted a single-digit gain during the period.

Westwood - Top 10 Holdings

Security	Sector	% of Westwood’s Total Investment as of 12/31/2013
JPMorgan Chase & Co.	Financials		2.9	%
Target Corp.	Consumer Discretionary		2.9	%
Johnson & Johnson	Health Care		2.8	%
Bank of America Corp.	Financials		2.5	%
Capital One Financial Corp.	Financials		2.3	%
United Technologies Corp.	Industrials		2.2	%
Comcast Corp. Class A	Consumer Discretionary		2.1	%
Hartford Financial Services Group Inc., The	Financials		2.1	%
ACE Limited	Financials		2.1	%
Honeywell International Inc.	Industrials		2.1	%

Fixed Income portion of the Fund (approximately 40% throughout the period)

SFIMC manages the Bond Fund in a manner that seeks to achieve over a period of years the highest yield possible that is consistent with investing in high quality, investment grade bonds. In managing the Bond Fund, we generally are buy-and-hold investors who focus primarily on U.S. Government obligations, government agency securities, and high quality corporate bonds.

As an asset class, while all components generated negative total returns, mortgage-backed securities in the Bond Fund outperformed U.S.Treasuries in the Bond Fund, while U.S.Treasuries outperformed corporate bonds in the Bond Fund. On an absolute return basis, the greatest detractor to the Bond Fund’s performance during the year came from the Bond Fund’s allocation to corporate bonds, which experienced a negative low-single digit total return for the period. In addition, the Bond Fund’s allocation to Agency Commercial Mortgage-Backed Securities, which experienced a negative mid-single digit total return for the period, contributed to the Bond Fund’s negative performance.

When comparing the Bond Fund’s total return to the Aggregate Bond Index, the Bond Fund’s higher weighting to corporate bonds relative to the Aggregate Bond Index and an underperformance of corporate bonds in the Bond Fund relative to the corporate bonds within the Aggregate Bond Index hindered relative performance versus the Aggregate Bond Index for the 1-year reporting period. In addition, the Agency Commercial Mortgage-Backed Securities in the Bond Fund hindered the relative performance of the Bond Fund versus the Aggregate Bond Index for the 1-year reporting period.

The option-adjusted duration of the Bond Fund stood at approximately 5.83 years at the end of 2013, up from 5.33 years at the beginning of the year. Duration is a statistical calculation that measures a bond’s (or in this case, a bond fund’s) price sensitivity relative to general movements in interest rates. Option-adjusted duration attempts to incorporate prepayment possibilities into the duration statistic.As interest rates rise, prepayments typically decrease as borrowers typically do not refinance their bonds at higher rates.

Financial highlights for this Fund can be found on pages 208-209.

43

State Farm Bond Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

SFIMC manages the State Farm Bond Fund (the “Fund”) in a manner that seeks to achieve over a period of years the highest yield possible that is consistent with investing in high quality, investment grade bonds. In managing the Fund, we generally are buy-and-hold investors who focus primarily on U.S. Government obligations, government agency securities, and high quality corporate bonds.

Describe the relevant market environment as it related to the Fund for the reporting period.

The market environment was influenced by many positive factors in the U.S., including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP). In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

Within the bond markets, prices of U.S.Treasuries declined as concerns grew that the Federal Reserve might start reducing the amount of its asset-purchase programs sooner than expected by the markets. Over the entire 12-months, the yield on 10-year U.S. Treasuries rose from 1.78% at the beginning of the period to a high of 3.04% on December 31, 2013. Short-term yields remained low, with 3-month U.S.Treasury yields increasing 2 basis points from 0.05% at the beginning of the period to 0.07% on December 31, 2013.

Overall, for the year ended December 31, 2013, while all major components posted negative total returns, securitized credit generally outperformed corporate bonds and U.S.Treasuries in the Barclays U.S.Aggregate Bond Index (the “Index”). For the 1-year period, the total return on securitized credit in the Index was –1.31%, compared to total returns of –1.53% and –2.75%, respectively, on corporate bonds and U.S.Treasuries in the Index.Among corporate bond sectors within the Index, financial institution bonds had a total return of 0.93%, while industrial bonds and utility bonds generated total returns of –2.62% and –3.19%, respectively for the year.

From a maturity perspective, short-maturity corporate bonds outperformed both intermediate and longer-maturity bonds in the Index during the year.The total return on 1-3 year corporate bonds in the Index was 1.71% compared to a total return of 0.36% and –6.45% on 5-7 year corporate bonds in the Index and 20+ year corporate bonds in the Index, respectively.Among U.S. Treasuries within the Index, short-maturity U.S.Treasuries outperformed both intermediate- and longer-maturity U.S.Treasuries. For the 1-year period, the total return on 1-3 year U.S.Treasuries in the Index was 0.36% compared to a total return of –3.60% and –13.88% on 5-7 year U.S.Treasuries in the Index and 20+ year U.S.Treasuries in the Index, respectively.

From a credit quality standpoint, in the Index the range of total returns for the year was narrow with Aaa-rated,Aa-rated,A-rated, and Baa-rated securities in the Index generating total returns of –2.06%, –2.02%, –1.86%, and –1.96%, respectively, for the year. Among corporate bonds within the Index, Baa-rated securities were the best performing credit sector within the Index on a relative basis, generating a total return of –0.93% compared to Aaa-rated,Aa-rated, and A-rated securities, which had total returns of –4.69%, –2.42%, and –1.86%, respectively, for the year¹.

1 Source: Barclays Live

44

Provide an illustration of the Fund’s investments.

Provided below is the security type allocation of the State Farm Bond Fund as of December 31, 2013, along with the security type allocation of the Barclays U.S.Aggregate Bond Index for comparison.

Security Type Allocation: State Farm Bond Fund

compared to the Barclays U.S. Aggregate Bond Index

(unaudited)*

Security Type	State Farm Bond Fund Allocation			Barclays U.S.  Aggregate Bond Index Allocation
Corporate Bonds		64.26	%		22.32	%
U.S. Treasury Obligations		13.57	%		35.69	%
Agency Mortgage-Backed Securities		9.05	%		29.78	%
Agency Commercial Mortgage-Backed Securities		10.71	%		0.00	%
Agency Notes & Bonds		1.13	%		4.03	%
Other Bonds & Foreign non-Corporate Bonds		0.06	%		8.18	%
Short-term Investments and Other Assets, Net of Liabilities		1.22	%		0.00	%
Totals		100.00	%		100.00	%

* Illustrated by Type of Security and based on total net assets for the Fund and total securities for the Index as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

45

How did the Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm Bond Fund had a total return of –3.60% without sales charges compared to a total return of –2.02% for the Barclays U.S.Aggregate Bond Index.The line graph and table below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Class A		-6.46	%		4.01	%		4.42	%*	$	13,936
Class B		-6.87	%		3.90	%		4.41	%*	$	13,919
Legacy Class A		-6.46	%		4.01	%		3.77	%	$	14,473
Legacy Class B		-6.87	%		3.89	%		3.67	%	$	14,341
Institutional		-3.45	%		4.89	%		4.37	%	$	15,336
Class R-1		-3.91	%		4.32	%		3.75	%*	$	14,085
Class R-2		-3.73	%		4.53	%		3.95	%*	$	14,334
Class R-3		-3.51	%		4.84	%		4.27	%*	$	14,750

* Class A and Class B Shares from 05/01/2006. Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Class A and Legacy Class A shares values and Legacy Class A shares performance on the line graph reflect a maximum sales charge of 3% at initial investment. Class A, Class B, Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Class A and Legacy Class A shares and for Class B and Legacy Class B shares at one year; and 2% for Class B and Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate taxable bond market, including government and corporate debt securities, mortgage pass-through debt securities and asset-backed debt securities with maturities greater than one year. Unlike an investment in the Bond Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

46

Performance Analysis

What factors helped and hindered performance during the reporting period?

As an asset class, while all components generated negative total returns, mortgage-backed securities in the Fund outperformed U.S.Treasuries in the Fund, while U.S.Treasuries outperformed corporate bonds in the Fund. On an absolute return basis, the greatest detractor to Fund performance during the year came from the Fund’s allocation to corporate bonds, which experienced a negative low-single digit total return for the period. In addition, the Fund’s allocation to Agency Commercial Mortgage-Backed Securities, which experienced a negative mid-single digit total return for the period, contributed to the Fund’s negative performance.

When comparing the Fund’s total return to the Index, the Fund’s higher weighting to corporate bonds relative to the Index and an underperformance of corporate bonds in the Fund relative to the corporate bonds within the Index hindered relative performance versus the Index for the 1-year reporting period. In addition, the Agency Commercial Mortgage-Backed Securities in the Fund hindered the relative performance of the Fund versus the Index for the 1-year reporting period.

The option-adjusted duration of the Fund stood at approximately 5.83 years at the end of 2013, up from 5.33 years at the beginning of the year. Duration is a statistical calculation that measures a bond’s (or in this case, a bond fund’s) price sensitivity relative to general movements in interest rates. Option-adjusted duration attempts to incorporate prepayment possibilities into the duration statistic.As interest rates rise, prepayments typically decrease as borrowers typically do not refinance their bonds at higher rates.

Financial highlights for this Fund can be found on pages 210-211.

47

State Farm Tax Advantaged Bond Fund Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The State Farm Tax Advantaged Bond Fund (the “Fund”) seeks as high a rate of income exempt from federal income taxes as is consistent with prudent investment management. Income may be subject to state and local taxes and (if applicable) the Alternative Minimum Tax. In managing the Fund, we focus on high credit quality bonds with an investment philosophy that seeks to provide competitive total returns, while managing for federal income tax efficiency within the municipal bond asset class over the long run.

The municipal bond market, while relatively small in total assets compared to the taxable bond market, is very broad by number of issuers. As a result, we believe that fundamental research and professional management is critical to success in this asset class. While we diversify the maturity spectrum of the bonds within the portfolio, we tend to favor the intermediate maturity range (currently maturities of 10-17 years) for the bulk of the Fund’s assets. The Fund also seeks to remain invested mainly in assets of high credit quality in an attempt to reduce the risk of loss to investment principal as a result of credit losses.

While we are conscious of how the Fund’s portfolio differs from its broad-based benchmark, the Barclays Municipal Bond Index, we do not make decisions based upon the Index.

Describe the relevant market environment as it related to the Fund for the reporting period.

Throughout the 1-year period ended December 31, 2013, fixed income markets were influenced by many factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP). In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

During the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

As illustrated in Table 1 below, the municipal bond yield curve steepened as intermediate- and longer-maturity yields increased more than short-maturity yields over the 1-year period ended December 31, 2013.

Table 1: Municipal Market Data (MMD) Yields (%) – AAA-Rated General Obligation Municipal Bonds¹

Date	1-Year			5-Year			10-Year			20-Year
January 1, 2013		0.21	%		0.81	%		1.72	%		2.43	%
December 31, 2013		0.17	%		1.24	%		2.77	%		3.83	%
Increase (Decrease) in Yield		-0.04	%		0.43	%		1.05	%		1.40	%

1 The Municipal Market Data AAA yield curve is indicative of AAA tax-exempt offered-side, institutional yield levels and may vary from actual yields attained. Source: ^© 2013 Lipper, a Thomson Reuters Company. Information provided by Lipper is not intended for trading purposes, nor do they provide any form of advice (investment, tax, legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments or products. Neither Lipper nor its third party content providers shall be liable for any errors, inaccuracies, or for any actions taken in reliance thereon. LIPPER EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE ACCURACY OF THE INFORMATION, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSE.

As illustrated in Table 2 below, annual total returns (as of December 31, 2013) on various components of the Barclays Municipal Bond Index were mixed along the maturity yield curve, with positive returns produced at the shorter-end of the curve and negative returns produced at the longer-end of the curve. The Barclays Municipal Bond Index had a total return of –2.55% for the 1-year period ended December 31, 2013.

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Table 2: Barclays Municipal Bond Index – Component Returns by Maturity²

Maturity	Annual Total  Return (as of December 31, 2013)
1-Year Municipal Bonds		0.80	%
3-Year Municipal Bonds		1.33	%
5-Year Municipal Bonds		0.81	%
7-Year Municipal Bonds		-0.97	%
10-Year Municipal Bonds		-2.17	%
15-Year Municipal Bonds		-3.32	%
20-Year Municipal Bonds		-4.42	%
Long-Bond (22+ Year) Municipal Bonds		-6.01	%

2 Source: Barclays Live. Past performance does not guarantee future results. The data illustrated provides component annual total returns by municipal bond maturities of the Barclays Municipal Bond Index.

From a total return standpoint, the higher end of investment-grade quality municipal bonds (Aaa and Aa rated bonds) outperformed relative to lower investment-grade quality municipal bonds (A and Baa rated bonds) within the Barclays Municipal Bond Index over the reporting period as illustrated by those credit quality component returns in Table 3 below:

Table 3: Barclays Municipal Bond Index - Annual Total Returns by Credit Quality Ratings³

Credit Quality	Annual Total Return (as of December 31, 2013)
Aaa Rated Bonds		-1.61	%
Aa Rated Bonds		-2.12	%
A Rated Bonds		-2.56	%
Baa Rated Bonds		-7.17	%

3 Source: Barclays Live. Past performance does not guarantee future results. The data illustrated provides component annual total returns by credit quality ratings of the Barclays Municipal Bond Index.

As of December 31, 2013, the 3.83% yield on 20-year Aaa-rated municipal bonds exceeded the 3.72% yield offered on comparable 20-year taxable U.S. Treasuries by 11 basis points, which is not a normal yield spread relationship. Typically, long-term municipal bonds offer approximately 75% to 90% of the yields available on comparable U.S. Treasuries because of the income tax benefits associated with municipal bonds. This yield comparison has been typically used as a general gauge within the industry to determine the relative attractiveness of municipal securities.

Provide an illustration of the Fund’s investments.

Provided below is the maturity allocation of the Tax Advantaged Bond Fund as of December 31, 2013, along with the maturity allocation of the Barclays Municipal Bond Index for comparison.

Maturity Allocation: State Farm Tax Advantaged Bond Fund

compared to the Barclays Municipal Bond Index (unaudited)*

Maturity Range	State Farm Tax Advantaged Bond Fund Allocation			Barclays Municipal  Bond Index Allocation
0-6 Years		7.32	%**		25.94	%
6-12 Years		41.14	%		24.41	%
12-22 Years		50.99	%		29.10	%
22+ Years		0.55	%		20.55	%
Totals		100.00	%		100.00	%

* Illustrated by Maturity and based on total investments for the Fund and total securities for the Index as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

** Includes a 2.47% allocation to the JPMorgan Tax Free Money Market Fund.

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How did the Fund perform during the reporting period?

Legacy Class A shares for the State Farm Tax Advantaged Bond Fund had a total return of –3.46% without sales charges for the 12-month period ended December 31, 2013. This is compared to a –2.55% return for the Barclays Municipal Bond Index over the same timeframe. The line graph and table below provide additional perspective on the Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Class A		-6.35	%		3.97	%		3.86	%*	$	13,373
Class B		-6.74	%		3.86	%		3.85	%*	$	13,357
Legacy Class A		-6.37	%		4.00	%		3.53	%	$	14,141
Legacy Class B		-6.67	%		3.87	%		3.42	%	$	14,003

* Class A and Class B shares from 05/01/2006.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Class A and Legacy Class A shares values and Legacy Class A shares performance on the line graph reflect a maximum sales charge of 3% at initial investment. Class A, Class B and Legacy Class B shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Class A and Legacy Class A shares and for Class B and Legacy Class B shares at one year; and 2% for Class B and Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

¹  The Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market and is made up of investment grade municipal bonds issued after 12/31/90 having a remaining maturity of at least one year. Unlike an investment in the Tax Advantaged Bond Fund, a theoretical investment in the Index does not reflect any expenses. It is not possible to invest directly in an index.

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Performance Analysis

What factors helped and hindered performance during the reporting period?

The Fund provided a negative total return over the 1-year period. However, as illustrated in Table 2 above, longer-maturity bonds underperformed intermediate maturities which in turn underperformed short maturities over the 1-year period. Consistent with the Fund’s intermediate-maturity orientation, 0.55% of the Fund’s total investments were in bonds having maturities over 22 years as compared to 20.55% for the Barclays Municipal Bond Index as of December 31, 2013. In addition, relative to the benchmark, the Fund had a higher concentration in bonds having maturities between 6-12 years and 12-22 years which underperformed relative to shorter-maturity bonds during the year. These factors played a role in the Fund underperforming relative to the Barclays Municipal Bond Index during the reporting period.

We seek to maintain the risk profile of the Fund with respect to volatility (duration), interest rate risk and capital (credit risk). Throughout the reporting period, the Fund’s modified duration increased from 5.69 years as of January 1, 2013 to 5.86 years as of December 31, 2013. Modified duration is a statistical calculation that measures a bond’s (or in this case, a bond fund’s) price sensitivity relative to general movements in interest rates. The Fund maintained a high quality credit orientation consistent with the Fund’s historical investment philosophy throughout the reporting period ended December 31, 2013.

Table 4 below provides an illustration of the Fund’s credit quality orientation compared to the Barclays Municipal Bond Index as of December 31, 2013. Over the reporting period, the higher end of investment-grade quality municipal bonds (Aaa and Aa rated bonds) outperformed relative to lower end investment-grade quality municipal bonds (A and Baa rated bonds) as previously illustrated in Table 3 above.

Table 4: Credit Ratings Comparison (as of December 31, 2013)⁴

Credit Ratings	State Farm Tax Advantaged Bond Fund Allocation			Barclays Municipal Bond Index Allocation
Aaa/AAA		16.84	%		11.21	%
Aa/AA		67.02	%		47.82	%
A		12.56	%		31.50	%
Baa/BBB or Lower		0.00	%		8.82	%
NR (Not Rated)		3.58	%*		0.65	%
Totals		100.00	%		100.00	%

4 Illustrated by Credit Quality and based on total investments for the Fund and total securities for the Index as of December 31, 2013. Reflects the lower of Moody’s or Standard and Poor’s issuer specific ratings. The issuer specific ratings do not reflect any bond insurer ratings.

* Includes a 2.47% allocation to the JPMorgan Tax Free Money Market Fund.

The difference in maturity structure between the Fund and benchmark along with the Fund’s higher credit quality orientation than the benchmark both played a role in the Fund’s relative performance versus the benchmark during the reporting period. As highlighted earlier, the objective of the Fund is to seek as high a rate of income exempt from income taxes as is consistent with prudent investment management. The Fund has been invested with a bias towards high credit quality, intermediate maturity bonds. Adopting additional risk by increasing duration significantly and/or increasing the weighting in lower credit quality bonds would not have been consistent with the Fund’s historical investment philosophy.

The number of individual bonds held in the portfolio decreased over the reporting period from 337 to 315 bonds. Turnover for the reporting period was 14.24%. Investments within the State of Arizona represented the largest single allocation in any state representing 8.46% of total net assets, which is up slightly from 7.53% from the beginning of the reporting period. The largest additions to the portfolio included net acquisitions of bonds in South Carolina and Michigan. Bonds secured by a general obligation pledge accounted for approximately 57% of all new acquisitions with revenue bond purchases representing 43% of the total. The average ratings quality of new bond purchases was approximately Aa/AA. The largest net reduction of holdings occurred through sales of bonds in Colorado and Minnesota.

Financial highlights for this Fund can be found on pages 212-213.

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State Farm Money Market Fund Management’s Discussion (unaudited)

Overview

Describe the Fund’s investment objective and philosophy.

The State Farm Money Market Fund (the “Fund”) seeks to maximize current income to the extent consistent with the preservation of capital and maintenance of liquidity. The Fund pursues this objective by investing in high quality commercial paper and other short-term debt securities. It is managed by State Farm Investment Management Corp. (SFIMC). An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Provide an illustration of the Fund’s investments.

Fund Composition*

* Illustrated by Type of Security and based on total net assets as of December 31, 2013. Please refer to the Schedule of Investments later in this report for details concerning Fund holdings.

Financial highlights for this Fund can be found on pages 214-215.

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State Farm LifePath Funds Management’s Discussion of Fund Performance (unaudited)

Overview

Describe the State Farm LifePath Funds investment objective and philosophy.

The State Farm LifePath Funds are organized as “feeder funds” in a “master-feeder” structure. Instead of investing directly in individual securities, the feeder fund, which is offered to the public, invests all its assets in a corresponding LifePath Master Portfolio. References to “the LifePath Funds” are to the feeder funds or the LifePath Master Portfolios, as the context requires, unless otherwise stated. The LifePath Funds, through their investment in the LifePath Master Portfolios, allocate their assets among broad types of asset classes by investing in a combination of equity, fixed income, and money market funds (the “Underlying Funds”) seeking to produce competitive returns consistent with a Fund’s investment objective. BlackRock Fund Advisors (“BlackRock”) is the investment adviser for the LifePath Master Portfolios.

Each LifePath Fund seeks a combination of income and growth of capital consistent with the quantitatively measured risk that investors on average may be willing to accept given their investment time horizon. A LifePath Fund’s time horizon marks the point when the investors plan to start making net withdrawals. Each LifePath Fund has its own time horizon, which affects the acceptable risk level of the LifePath Fund and, in turn, its asset allocation.

With the exceptions of the LifePath Retirement Master Portfolio not containing an allocation to the iShares Cohen& Steers Realty Majors Index Fund and iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index Fund and the LifePath 2050 Master Portfolio not containing an allocation to the iShares Barclays TIPS Bond Fund during 2013, each LifePath Master Portfolio invested in the same Underlying Funds but in differing proportions, depending upon the time horizon and acceptable risk level of the LifePath Master Portfolio.

Several changes were made to the Underlying Funds within the LifePath Master Portfolios during 2013. On November 1, 2013, exposure to the Russell 1000 Index Master Portfolio, International Tilts Master Portfolio, and BlackRock Emerging Markets Fund, Inc. were added to the LifePath Master Portfolios. The intent of these changes is to shift the equity risk of the actively managed portion of the LifePath Master Portfolios from the U.S. large cap stocks component to the international equity and emerging markets actively managed equity components in an effort to improve the diversification and risk-adjusted returns of the portfolios over time. Specifically, allocation to the actively-managed Active Stock Master Portfolio was reduced to allow for an allocation to the passively-managed Russell 1000 Index Master Portfolio. In addition, allocation to the passively-managed ACWI ex-U.S. Master Portfolio was reduced to allow for an allocation to the actively-managed International Tilts Master Portfolio. Furthermore, allocation to the passively-managed iShares MSCI Emerging Markets Index Fund was reduced to allow for an allocation to the actively-managed BlackRock Emerging Markets Fund, Inc.

Describe the relevant market environment as it related to the State Farm LifePath Funds for the reporting period.

In the U.S., equity markets (as represented by the S&P 500 Index) achieved positive total returns in ten of the past twelve months ended December 31, 2013. Throughout the period, equity markets were influenced by many positive factors including: generally subdued inflation, improving corporate earnings, and modest positive growth in Gross Domestic Product (GDP) – all factors that contributed to improved investor confidence and an increase in equity market price-to-earnings (P/E) valuations. In addition, the Federal Reserve maintained an accommodative monetary policy by leaving the Fed Funds Rate unchanged in a target range of 0% to 0.25%, where it remained for the entire 12-month period ended December 31, 2013.

However, the market environment was not without its challenges. In January, equity markets had to evaluate the U.S. congressional budget vote on what was known as the “fiscal cliff” and the impacts of the resulting fiscal decisions. During February and March, several international equity markets turned negative and became increasingly volatile as unresolved concerns about sovereign debt issues in several European countries as well as a banking crisis in the small island nation of Cyprus weighed on investor sentiment.

Throughout the second half of the fiscal year, the markets were focused on commentary from the Federal Reserve about its intentions and timing of potentially reducing its asset-purchase programs known as “quantitative easing.” In addition, in the fall of 2013, the markets digested renewed fears of the fiscal cliff and a two week U.S. government shutdown in October 2013. In mid-December, the Federal Reserve announced that it would begin to reduce (“taper”) its asset-purchase program beginning in January 2014.

The 12-month total return for the S&P 500 Index was 32.39% for the period ended December 31, 2013. The total return for the period reflected an increase in corporate earnings per share for the S&P 500 Index companies of approximately 8%, an expansion of the price/earnings valuation of the S&P 500 Index of approximately 20%, and a dividend return of approximately 2.3%.

iShares, LifePath, and LifePath followed by 2020, 2030, 2040 and 2050 are all registered trademarks of BlackRock Institutional Trust Company, N.A.

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Within the S&P 500 Index, the Information Technology sector held the largest weighting of 18.6% and produced a total return of 28.4% for the reporting period. All ten of the Index’s sectors posted double-digit gains for the year. The Telecommunications Services sector was the smallest weighting at 2.3% and produced the lowest total return of 11.5%.

Mid-cap stocks (as represented by the Russell Midcap Index) and small cap stocks (as represented by the Russell 2000 Index) posted total returns of 34.76% and 38.82%, respectively, for the year ended December 31, 2013. Mid- and small-cap stocks outperformed large cap stocks (as represented by the S&P 500 Index) in 2013.

International equity markets, as represented by the MSCI ACWI ex-U.S. IMI Index¹, posted a total return of 15.82%. Developed European markets like Finland and Ireland were among the strongest performing markets, increasing 46.04% and 41.15%, respectively, in U.S. dollar terms. Meanwhile, Singapore was the weakest performing country in the developed markets, experiencing a gain of 1.7% in U.S. dollar terms. Stock market performance in emerging market countries was weaker than the major developed markets during the period with the MSCI Emerging Markets Index posting a total return of –2.60% in U.S. dollar terms. Emerging market countries such as India and Brazil declined –3.83% and –16.04%, respectively, while China gained 3.64% in U.S. dollar terms during the period.

Within the real estate market, the Cohen & Steers Realty Majors Index² decreased –1.45% due to rising interest rates and lower housing sales. Consistent with the international equity markets, foreign real estate investments produced gains as the FTSE EPRA/ NAREIT Developed Real Estate ex-U.S. Index³ returned 5.79% for the one-year period ending December 31, 2013.

Throughout the year, oil and gold prices were volatile. Oil prices began the period at around $92/barrel and ranged between approximately $87 and $111/barrel during the period, before ending the period December 2013 around $98/barrel, an increase of 7% for the 12-month period. Gold prices began the period at around $1,675 per troy ounce and ranged between approximately $1,182 and $1,695 per troy ounce during the period, before ending the period December 2013 around $1,202/oz., a decrease of –28% for the 12-month period. The Dow Jones-UBS Commodity Index⁴ generated a total return of –9.52% during the one-year period ending December 31, 2013, due in part to economic slowdown in many developing countries.

Within the bond markets, prices of U.S. Treasuries declined as concerns grew that the Federal Reserve might start reducing the amount of its asset-purchase programs sooner than expected by the markets. Over the entire 12-months, the yield on 10-year U.S. Treasuries rose from 1.78% at the beginning of the period to a high of 3.04% on December 31, 2013. With the rise in interest rates occurring during the period without signs of underlying inflation growth, the demand for inflation-protected U.S. Treasury TIPS declined, which helped cause the Barclays U.S. TIPS Index⁵ to post a –8.61% total return for the period ending December 31, 2013. Meanwhile, short-term yields remained low, with 3-month U.S. Treasury yields increasing 2 basis points from 0.05% at the beginning of the period to 0.07% on December 31, 2013. As such, cash holdings, as represented by the Citigroup 3-Month U.S. Treasury Bill Index⁶ returned 0.05%, highlighting the continued low short-term interest rate environment.

Relevant Market Indices	1-year Total  Return as of 12/31/2013
U.S. Equity:
S&P 500 Index		32.39	%
Russell 1000 Index		33.11	%
Russell MidCap Index		34.76	%
Russell 2000 Index		38.82	%
Non-U.S. Equity:
MSCI ACWI ex-U.S. IMI Index		15.82	%
MCSI Emerging Markets Index		-2.60	%
Fixed Income:
Barclays U.S. Aggregate Bond Index		-2.02	%
Barclays High-Yield Bond Index		7.44	%
Barclays U.S. TIPS Index		-8.61	%
Citigroup 3-Month Treasury Bill Index		0.05	%
Specialty:
Cohen & Steers Realty Majors Index		-1.45	%
Dow Jones-UBS Commodity Index		-9.52	%
FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index		5.79	%
FTSE EPRA/NAREIT Developed Real Estate Index		3.67	%
It is not possible to invest directly in an index. Past performance does not guarantee future results.

1 The MSCI ACWI ex-U.S. IMI Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets.

2 The Cohen & Steers Realty Majors Portfolio Index is a modified capitalization weighted total return index of selected United States Equity Real Estate Investment Trusts (REITs).

3 The FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index is designed to measure the stock performance of companies engaged in specific real estate activities of the real estate markets outside of the United States. Relevant real estate activities are defined as the ownership, trading and development of income producing real estate.

4 The Dow Jones-UBS Commodity Index is a broadly diversified index that allows investors to track commodity futures through a single, simple measure. The index currently represents 20 commodities, which are weighted to account for economic significance and market liquidity.

5 The Barclays U.S. TIPS Index is an unmanaged index composed of inflation protected securities issued by the U.S. Treasury.

6 The Citigroup 3-Month Treasury Bill Index is an unmanaged index of three-month Treasury bills.

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Within the Barclays U.S. Aggregate Bond Index (the “Aggregate Bond Index”), all major components posted negative total returns, with securitized credit generally outperforming corporate bonds and U.S. Treasuries in the Aggregate Bond Index. For the 1-year period, the total return on securitized credit in the Aggregate Bond Index was –1.31%, compared to total returns of –1.53% and –2.75%, respectively, on corporate bonds and U.S. Treasuries in the Aggregate Bond Index. Among corporate bond sectors within the Aggregate Bond Index, financial institution bonds had a total return of 0.93%, while industrial bonds and utility bonds generated total returns of –2.62% and –3.19%, respectively for the year.

From a maturity perspective, short-maturity corporate bonds outperformed both intermediate and longer-maturity bonds in the Aggregate Bond Index during the year. The total return on 1-3 year corporate bonds in the Aggregate Bond Index was 1.71% compared to a total return of 0.36% and –6.45% on 5-7 year corporate bonds in the Aggregate Bond Index and 20+ year corporate bonds in the Aggregate Bond Index, respectively. Among U.S. Treasuries within the Aggregate Bond Index, short-maturity U.S. Treasuries outperformed both intermediate- and longer-maturity U.S. Treasuries. For the 1-year period, the total return on 1-3 year U.S. Treasuries in the Aggregate Bond Index was 0.36% compared to a total return of –3.60% and –13.88% on 5-7 year U.S. Treasuries in the Aggregate Bond Index and 20+ year U.S. Treasuries in the Aggregate Bond Index, respectively.

From a credit quality standpoint, in the Aggregate Bond Index the range of total returns for the year was narrow with Aaa-rated, Aa-rated, A-rated, and Baa-rated securities in the Aggregate Bond Index generating total returns of –2.06%, –2.02%, –1.86%, and –1.96%, respectively, for the year. Among corporate bonds within the Aggregate Bond Index, Baa-rated securities were the best performing credit sector within the Aggregate Bond Index on a relative basis, generating a total return of –0.93% compared to Aaa-rated, Aa-rated, and A-rated securities, which had total returns of –4.69%, –2.42%, and –1.86%, respectively, for the year⁷.

Comparably, high-yield bonds outperformed investment grade bonds as represented by the 7.44% total return for the Barclays High-Yield Bond Index⁸ versus the –2.02% total return of the Aggregate Bond Index for the period ending December 31, 2013.

What factors helped and hindered performance of the LifePath Funds during the reporting period?

The LifePath Funds are invested in a combination of the Underlying Funds. With the exceptions of the LifePath Retirement Fund not containing an allocation to the iShares Cohen & Steers Realty Majors Index Fund and iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index Fund and the LifePath 2050 Fund not containing an allocation to the iShares Barclays TIPS Bond Fund during 2013, each LifePath Fund invested in the same Underlying Funds but in differing proportions, depending upon the time horizon and acceptable risk level of the LifePath Fund.

The LifePath Funds with longer time horizons, such as the LifePath 2050 Fund, invested a greater share of their assets in equity oriented Underlying Funds, such as the Active Stock Master Portfolio, the ACWI ex-U.S. Index Master Portfolio and International Tilts Master Portfolio. The more conservative LifePath Funds, such as the LifePath Retirement Fund, allocated more of their assets to fixed income-oriented investments, such as the CoreAlpha Bond Master Portfolio and the iShares Barclays TIPS Bond Fund. Ultimately the performance of any given LifePath Fund is a reflection of its asset allocation.

During 2013, each LifePath Fund (with the exception of the LifePath Retirement and LifePath 2050 Funds as noted previously) invested a portion of their assets in six different Master Portfolios: the Active Stock Master Portfolio, the Russell 1000 Index Master Portfolio (beginning November 1, 2013), the Master Small Cap Index Series, the ACWI ex-U.S. Index Master Portfolio, the International Tilts Master Portfolio (beginning November 1, 2013), and the CoreAlpha Bond Master Portfolio and seven different exchange-traded funds (iShares) managed by BlackRock: the iShares MSCI EAFE Index Fund, the iShares MSCI EAFE Small Cap Index Fund, the iShares MSCI Emerging Markets Index Fund, the iShares MSCI Canada Index Fund, the iShares Cohen & Steers Realty Majors Index Fund, the iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index Fund, the iShares Barclays TIPS Bond Fund. In addition, each LifePath Fund invested a portion of their assets in the BlackRock Commodity Strategies Fund and BlackRock Emerging Markets Fund, Inc. (beginning November 1, 2013).

7 Source: Barclays Live.

8 The Barclays High-Yield Bond Index covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.

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The returns of the Underlying Funds for the period of time they were included in the LifePath Master Portfolios contributed to theoverall returns of the LifePath Funds as shown below.

Underlying Funds	1-Year Return
Active Stock Master Portfolio		34.02	%
Master Small Cap Index Series		39.11	%
iShares MSCI EAFE Index Fund		22.62	%
ACWI ex-U.S. Index Master Portfolio		13.96	%
iShares MSCI EAFE Small Cap Index Fund		29.22	%
iShares MSCI Emerging Markets Index Fund		-3.14	%
iShares MSCI Canada Index Fund		5.41	%
iShares Cohen & Steers Realty Majors Index Fund		-1.80	%
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index Fund		5.29	%
BlackRock Commodity Strategies Fund		-7.09	%
CoreAlpha Bond Master Portfolio		-2.39	%
iShares Barclays TIPS Bond Fund		-8.65	%

New Underlying Fund	2-Month  Return (Nov. 1, 2013-Dec. 31, 2013)
Russell 1000 Index Master Portfolio		5.53	%
International Tilts Master Portfolio		1.50	%
BlackRock Emerging Markets Fund, Inc.		-0.29	%

The LifePath Funds invested a significant amount of their assets in the Active Stock and CoreAlpha Bond Master Portfolios. Both of these Master Portfolios seek to outperform their respective benchmark indices while maintaining similar risk profiles as those benchmarks.

The Active Stock Master Portfolio outperformed its benchmark, the Russell 1000 Index, by 0.91% (34.02% vs. 33.11%, respectively) for the reporting period. At the end of 2013, the Active Stock Master Portfolio invested in 334 stocks of which 91% were from its benchmark Russell 1000 Index. The number of holdings decreased from 688 at the start of the year (which in turn increased the average individual security weightings). Overall, the Active Stock Master Portfolio generally maintained sector weights and a risk profile that was similar to its benchmark during the year.

The CoreAlpha Bond Master Portfolio underperformed the return for its respective benchmark, the Barclays U.S. Aggregate Bond Index during 2013 by 0.37% (–2.39% vs. –2.02%, respectively). As of December 31, 2013, there were 317 issuers and 1,151 securities comprising the CoreAlpha Bond Master Portfolio. During 2013, lower credit quality bonds in the Barclays U.S. Aggregate Bond Index generally outperformed relative to higher credit quality bonds in the Index during the year. In addition, high-yield bonds outperformed investment grade bonds as represented by the 7.44% return for the Barclays High-Yield Bond Index versus the –2.02% return of the Barclays U.S. Aggregate Bond Index for the year ended December 31, 2013.

56

State Farm LifePath Retirement Fund

Provide an illustration of the Fund’s investments.

LifePath Retirement Master Portfolio Composition*

* Illustrated by Security Type and based on the Master Portfolio’s investments in Affiliated Investment Companies of the Master Portfolio as of December 31, 2013. Please refer to the Schedule of Investments for the Master Portfolio for details concerning Master Portfolio holdings and the Master Portfolio Information, both found later in this report.

How did the State Farm LifePath Retirement Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm LifePath Retirement Fund had a total return without sales charges of 5.81%. The total returns for comparative indices of the LifePath Funds during the same time period were as follows: S&P 500 Index 32.39% and the Barclays U.S. Aggregate Bond Index –2.02%.

Because of the multi-asset structure of the LifePath Retirement Fund, a blended benchmark is also used for comparison purposes in the line graphs below. The blended benchmark is comprised of the indices shown below with weightings adjusted at the beginning of each quarter to approximately correspond with the LifePath Retirement Fund’s investments for the upcoming quarter. As of December 31, 2013, the total return of the LifePath Retirement Fund’s blended benchmark was 6.70% for the 1-year period and had the following composition:

Index	LifePath Retirement Fund’s Blended  Benchmark Weighting
Barclays U.S. Aggregate Bond Index		52.94	%
Russell 1000 Index		19.63	%
MSCI ACWI ex-U.S. IMI Index		9.95	%
Barclays U.S. TIPS Index		9.06	%
Russell 2000 Index		4.61	%
Dow Jones-UBS Commodity Index		3.81	%

57

The line graphs and tables below provide additional perspective for the State Farm LifePath Retirement Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		0.53	%		7.61	%		3.98	%	$	13,487
Class B		0.51	%		7.82	%		4.02	%	$	13,532

* From 05/01/2006

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 See footnotes for LifePath 2050 Fund on page 74 for a description of the Indices.

2 On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 52.94% Barclays U.S. Aggregate Bond Index, 19.63% Russell 1000 Index, 4.61% Russell 2000 Index, 9.95% MSCI ACWI ex-U.S. IMI Index, 3.81% Dow Jones-UBS Commodity Index, and 9.06% Barclays U.S. TIPS Index. Unlike an investment in the LifePath Retirement Fund, a theoretical investment in any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

58

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		2.60	%		8.07	%		4.47	%	$	15,485
Legacy Class B		2.39	%		8.02	%		4.35	%	$	15,309
Institutional		6.15	%		9.01	%		5.06	%	$	16,386
Class R-1		5.50	%		8.41	%		4.64	%*	$	15,253
Class R-2		5.64	%		8.62	%		4.85	%*	$	15,532
Class R-3		6.09	%		8.94	%		5.16	%*	$	15,969

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

¹  See footnotes for LifePath 2050 Fund on page 74 for a description of the Indices.

²  On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 52.94% Barclays U.S. Aggregate Bond Index, 19.63% Russell 1000 Index, 4.61% Russell 2000 Index, 9.95% MSCI ACWI ex-U.S. IMI Index, 3.81% Dow Jones-UBS Commodity Index, and 9.06% Barclays U.S. TIPS Index. Unlike an investment in the LifePath Retirement Fund, a theoretical investment in any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

59

Performance Analysis

What factors helped and hindered performance of the LifePath Retirement Fund during the reporting period?

The main driver to performance for the LifePath Retirement Fund was its allocation to the CoreAlpha Bond Master Portfolio – which made up the majority of the bond allocation of the LifePath Retirement Fund’s total net assets in 2013. At the end of December 2013, this weighting stood at 52.28% which was up slightly from 52.20% at the beginning of the year. The CoreAlpha Bond Master Portfolio underperformed the return for its respective benchmark, the Barclays U.S. Aggregate Bond Index by 0.37% (–2.39% vs. –2.02% respectively).

As of December 31, 2013, there were 317 issuers and 1,151 securities comprising the CoreAlpha Bond Master Portfolio. During 2013, lower credit quality bonds in the Barclays U.S. Aggregate Bond Index generally outperformed relative to higher credit quality bonds in the Index during the year. In addition, high-yield bonds outperformed investment grade bonds as represented by the 7.44% return for the Barclays High-Yield Bond Index versus the –2.02% return of the Barclays U.S. Aggregate Bond Index for the year ended December 31, 2013.

The LifePath Retirement Fund also included an allocation to the iShares Barclays TIPS Bond Fund during 2013. This allocation increased from 8.74% of the LifePath Retirement Fund’s total net assets at the beginning of the year to 9.48% of total net assets by December 31, 2013. It’s important to note the LifePath Retirement Fund maintained an exposure to equity investments of approximately 34% of total net assets. The largest equity allocation was to the Active Stock Master Portfolio at 18.98% of the LifePath Retirement Fund’s total net assets. For the year, the Active Stock Master Portfolio outperformed its benchmark, the Russell 1000 Index, by 0.91% (34.02% vs. 33.11%, respectively). Overall, the Active Stock Master Portfolio generally maintained sector weights and a risk profile that was similar to its benchmark during the year.

Exposure to small-cap U.S. equity securities through investment in the Master Small Cap Index Series within the LifePath Retirement Fund at the end of December 2013 was 4.68% of total net assets. Small-cap stocks outperformed relative to large-and mid-cap stocks (as represented by the S&P 500 Index and Russell MidCap Index) for the reporting period. The LifePath Retirement Fund’s exposure to foreign equity securities was 10.16% of total net assets as of December 31, 2013, comprised of the ACWI ex-U.S. Index Master Portfolio, International Tilts Master Portfolio, BlackRock Emerging Markets Fund, Inc., and four underlying iShares exchange-traded funds (ETF): iShares MSCI EAFE Index Fund, iShares MSCI Emerging Markets Index Fund, iShares MSCI Canada Index Fund, and the iShares MSCI EAFE Small Cap Index Fund. International equity markets underperformed large-cap U.S. equity markets during the reporting period.

The LifePath Retirement Fund also included an allocation to the BlackRock Commodity Strategies Fund. Commodity prices generally declined during the period, with the Dow Jones-UBS Commodity Index falling –9.52% for the year ended December 31, 2013. This allocation increased slightly from 3.60% of the LifePath Retirement Fund’s total net assets at the beginning of the year to 3.64% of total net assets by December 31, 2013.

Over the course of the year, the asset allocation adjustments within the LifePath Retirement Fund resulted in an approximate 0.3% decrease to international equity securities. The real estate allocation was reduced by an approximate 0.4% and the fixed income allocation was increased by an approximate 0.8%. The cash allocation was increased by an approximate 1.2%.

Financial highlights for this Fund can be found on pages 216-217.

60

State Farm LifePath 2020 Fund

Provide an illustration of the Fund’s investments.

LifePath 2020 Master Portfolio Composition*

* Illustrated by Security Type and based on the Master Portfolio’s investments in Affiliated Investment Companies of the Master Portfolio as of December 31, 2013. Please refer to the Schedule of Investments for the Master Portfolio for details concerning Master Portfolio holdings and the Master Portfolio Information, both found later in this report.

How did the State Farm LifePath 2020 Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm LifePath 2020 Fund had a total return without sales charges of 9.32%. The total returns for comparative indices of the LifePath Funds during the same time period were as follows: S&P 500 Index 32.39% and the Barclays U.S. Aggregate Bond Index –2.02%.

Because of the multi-asset structure of the LifePath 2020 Fund, a blended benchmark is also used for comparison purposes in the line graphs below. The blended benchmark is comprised of the indices shown below with weightings adjusted at the beginning of each quarter to approximately correspond with the LifePath 2020 Fund’s investments during the upcoming quarter. As of December 31, 2013, the total return of the LifePath 2020 Fund’s blended benchmark was 10.32% for the 1-year period and had the following composition:

Index	LifePath 2020 Fund’s Blended Benchmark Weighting
Barclays U.S. Aggregate Bond Index		41.54	%
Russell 1000 Index		27.19	%
MSCI ACWI ex-U.S. IMI Index		14.25	%
Barclays U.S. TIPS Index		6.72	%
Russell 2000 Index		3.88	%
Dow Jones-UBS Commodity Index		3.82	%
FTSE EPRA/NAREIT Developed Real Estate Index		2.60	%

61

The line graphs and tables below provide additional perspective for the State Farm LifePath 2020 Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		3.88	%		9.41	%		3.36	%	$	12,880
Class B		3.66	%		9.48	%		3.33	%	$	12,856

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 See footnotes for LifePath 2050 Fund on page 74 for a description of the Indices.

2 On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 41.54% Barclays U.S. Aggregate Bond Index, 27.19% Russell 1000 Index, 3.88% Russell 2000 Index, 14.25% MSCI ACWI ex-U.S. IMI Index, 3.82% Dow Jones-UBS Commodity Index, 2.60% FTSE EPRA/NAREIT Developed Real Estate Index, and 6.72% Barclays U.S. TIPS Index. Unlike an investment in the LifePath 2020 Fund, a theoretical investmentin any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

62

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		6.03	%		9.86	%		4.74	%	$	15,884
Legacy Class B		5.90	%		9.81	%		4.65	%	$	15,758
Institutional		9.69	%		10.81	%		5.35	%	$	16,837
Class R-1		9.07	%		10.20	%		4.98	%*	$	15,709
Class R-2		9.21	%		10.41	%		5.16	%*	$	15,967
Class R-3		9.58	%		10.74	%		5.43	%*	$	16,358

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

¹  See footnotes for LifePath 2050 Fund on page 74 for a description of the Indices.

²  On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 41.54% Barclays U.S. Aggregate Bond Index, 27.19% Russell 1000 Index, 3.88% Russell 2000 Index, 14.25% MSCI ACWI ex-U.S. IMI Index, 3.82% Dow Jones-UBS Commodity Index, 2.60% FTSE EPRA/NAREIT Developed Real Estate Index, and 6.72% Barclays U.S. TIPS Index. Unlike an investment in the LifePath 2020 Fund, a theoretical investmentin any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

63

Performance Analysis

What factors helped and hindered performance of the LifePath 2020 Fund during the reporting period?

The main driver to performance for the LifePath 2020 Fund was its allocation to the Active Stock Master Portfolio – which made up over half of the LifePath 2020 Fund’s equity exposure. At the end of December 2013, this weighting stood at 25.94% of the LifePath 2020 Fund’s total net assets which is lower than the 28.74% weighting at the beginning of the year. As highlighted earlier, the Active Stock Master Portfolio is benchmarked to the Russell 1000 Index. At the end of 2013, the Active Stock Master Portfolio invested in 334 stocks of which 91% were from its benchmark Russell 1000 Index. The number of holdings decreased from 688 at the start of the year (which in turn increased the average individual security weightings). For the year, the Active Stock Master Portfolio outperformed its benchmark by 0.91% (34.02% vs. 33.11%, respectively). Overall, the Active Stock Master Portfolio generally maintained sector weights and a risk profile that was similar to its benchmark during the year.

The LifePath 2020 Fund’s exposure to small-cap U.S. equity securities via investment in the Master Small Cap Index Series at the end of December 2013 was 4.07% of total net assets. Small-cap stocks outperformed relative to large- and mid-cap stocks (as represented by the S&P 500 Index and Russell MidCap Index) for the reporting period. The LifePath 2020 Fund’s exposure to foreign equity securities was 14.35% of total net assets as of December 31, 2013, comprised of the ACWI ex-U.S. Index Master Portfolio, International Tilts Master Portfolio, BlackRock Emerging Markets Fund, Inc., and four underlying iShares exchange-traded funds (ETF): iShares MSCI EAFE Index Fund, iShares MSCI Emerging Markets Index Fund, iShares MSCI Canada Index Fund, and the iShares MSCI EAFE Small Cap Index Fund. International equity markets underperformed large-cap U.S. equity markets during the reporting period.

The LifePath 2020 Fund also included an allocation to the BlackRock Commodity Strategies Fund. Commodity prices generally declined during the period, with the Dow Jones-UBS Commodity Index falling –9.52% for the year ended December 31, 2013. This allocation increased slightly from 3.63% of the LifePath 2020 Fund’s total net assets at the beginning of the year to 3.67% of total net assets by December 31, 2013.

From a fixed-income perspective, the LifePath 2020 Fund held 41.99% of its total net assets in the CoreAlpha Bond Master Portfolio which is up from 39.53% at the beginning of the year. As highlighted earlier, the CoreAlpha Bond Master Portfolio underperformed the return for its respective benchmark, the Barclays U.S. Aggregate Bond Index during 2013 by 0.37% (–2.39% vs. –2.02% respectively).

As of December 31, 2013, there were 317 issuers and 1,151 securities comprising the CoreAlpha Bond Master Portfolio. During 2013, lower credit quality bonds in the Barclays U.S. Aggregate Bond Index generally outperformed relative to higher credit quality bonds in the Index during the year. In addition, high-yield bonds outperformed investment grade bonds as represented by the 7.44% return for the Barclays High-Yield Bond Index versus the –2.02% return of the Barclays U.S. Aggregate Bond Index for the year ended December 31, 2013.

Over the course of the year, the asset allocation adjustments within the LifePath 2020 Fund resulted in an approximate 1.7% and 0.6% decrease to domestic equity and international equity securities, respectively. The real estate allocation was reduced by an approximate 0.7% and the fixed income allocation was increased by an approximate 3.0%. The cash allocation was increased by an approximate 0.8%.

Financial highlights for this Fund can be found on pages 218-219.

64

State Farm LifePath 2030 Fund

Provide an illustration of the Fund’s investments.

LifePath 2030 Master Portfolio Composition*

* Illustrated by Security Type and based on the Master Portfolio’s investments in Affiliated Investment Companies of the Master Portfolio as of December 31, 2013. Please refer to the Schedule of Investments for the Master Portfolio for details concerning Master Portfolio holdings and the Master Portfolio Information, both found later in this report.

How did the State Farm LifePath 2030 Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm LifePath 2030 Fund had a total return without sales charges of 13.34%. The total returns for comparative indices of the LifePath Funds during the same time period were as follows: S&P 500 Index 32.39% and the Barclays U.S. Aggregate Bond Index –2.02%.

Because of the multi-asset structure of the LifePath 2030 Fund, a blended benchmark is also used for comparison purposes in the line graphs below. The blended benchmark is comprised of the indices shown below with weightings adjusted at the beginning of each quarter to approximately correspond with the LifePath 2030 Fund’s investments for the upcoming quarter. As of December 31, 2013, the total return of the LifePath 2030 Fund’s blended benchmark was 14.32% for the 1-year period and had the following composition:

Index	LifePath 2030 Fund’s Blended Benchmark Weighting
Russell 1000 Index		35.86	%
Barclays U.S. Aggregate Bond Index		28.30	%
MSCI ACWI ex-U.S. IMI Index		19.15	%
FTSE EPRA/NAREIT Developed Real Estate Index		5.67	%
Barclays U.S. TIPS Index		4.14	%
Dow Jones-UBS Commodity Index		3.85	%
Russell 2000 Index		3.03	%

65

The line graphs and tables below provide additional perspective for the State Farm LifePath 2030 Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		7.72	%		10.88	%		3.16	%	$	12,698
Class B		7.58	%		10.96	%		3.16	%	$	12,690

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

¹  See footnotes for LifePath 2050 Fund on page 74 for a description of the Indices.

²  On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 28.30% Barclays U.S. Aggregate Bond Index, 35.86% Russell 1000 Index, 3.03% Russell 2000 Index, 19.15% MSCI ACWI ex-U.S. IMI Index, 3.85% Dow Jones-UBS Commodity Index, 5.67% FTSE EPRA/NAREIT Developed Real Estate Index, and 4.14% Barclays U.S. TIPS Index. Unlike an investment in the LifePath 2030 Fund, a theoretical investmentin any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

66

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		9.94	%		11.33	%		4.99	%	$	16,271
Legacy Class B		9.91	%		11.30	%		4.90	%	$	16,134
Institutional		13.63	%		12.28	%		5.59	%	$	17,224
Class R-1		12.99	%		11.66	%		5.20	%*	$	16,017
Class R-2		13.23	%		11.88	%		5.41	%*	$	16,316
Class R-3		13.56	%		12.25	%		5.73	%*	$	16,783

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

1 See footnotes for LifePath 2050 Fund on page 74 for a description of the Indices.

2 On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 28.30% Barclays U.S. Aggregate Bond Index, 35.86% Russell 1000 Index, 3.03% Russell 2000 Index, 19.15% MSCI ACWI ex-U.S. IMI Index, 3.85% Dow Jones-UBS Commodity Index, 5.67% FTSE EPRA/NAREIT Developed Real Estate Index, and 4.14% Barclays U.S. TIPS Index. Unlike an investment in the LifePath 2030 Fund, a theoretical investmentin any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

67

Performance Analysis

What factors helped and hindered performance of the LifePath 2030 Fund during the reporting period?

The main driver to performance for the LifePath 2030 Fund was its allocation to the Active Stock Master Portfolio – which made up approximately half of the LifePath 2030 Fund’s equity exposure. At the end of December 2013, this weighting stood at 33.33% of the LifePath 2030 Fund’s total net assets which is lower than the 37.60% weighting at the beginning of the year. As highlighted earlier, the Active Stock Master Portfolio is benchmarked to the Russell 1000 Index. At the end of 2013, the Active Stock Master Portfolio invested in 334 stocks of which 91% were from its benchmark Russell 1000 Index. The number of holdings decreased from 688 at the start of the year (which in turn increased the average individual security weightings). For the year, the Active Stock Master Portfolio outperformed its benchmark by 0.91% (34.02% vs. 33.11%, respectively). Overall, the Active Stock Master Portfolio generally maintained sector weights and a risk profile that was similar to its benchmark during the year.

The LifePath 2030 Fund’s exposure to foreign equity securities was 19.28% of total net assets as of December 31, 2013, comprised of the ACWI ex-U.S. Index Master Portfolio, International Tilts Master Portfolio, BlackRock Emerging Markets Fund, Inc., and four underlying iShares exchange-traded funds (ETF): iShares MSCI EAFE Index Fund, iShares MSCI Emerging Markets Index Fund, iShares MSCI Canada Index Fund, and the iShares MSCI EAFE Small Cap Index Fund. International equity markets underperformed large-cap U.S. equity markets during the reporting period.

The LifePath 2030 Fund also included an allocation to the BlackRock Commodity Strategies Fund. Commodity prices generally declined during the period, with the Dow Jones-UBS Commodity Index falling –9.52% for the year ended December 31, 2013. This allocation increased from 3.62% of the LifePath 2030 Fund’s total net assets at the beginning of the year to 3.85% of total net assets by December 31, 2013.

The LifePath 2030 Fund’s exposure to small-cap U.S. equity securities via investment in the Master Small Cap Index Series at the end of December 2013 was 3.30% of total net assets. Small-cap stocks outperformed relative to large- and mid-cap stocks (as represented by the S&P 500 Index and Russell MidCap Index) for the reporting period.

From a fixed-income perspective, the LifePath 2030 Fund held 29.31% of its total net assets in the CoreAlpha Bond Master Portfolio which is up from 26.51% at the beginning of the year. As highlighted earlier, the CoreAlpha Bond Master Portfolio underperformed the return for its respective benchmark, the Barclays U.S. Aggregate Bond Index during 2013 by 0.37% (–2.39% vs. –2.02% respectively). As of December 31, 2013, there were 317 issuers and 1,151 securities comprising the CoreAlpha Bond Master Portfolio.

During 2013, lower credit quality bonds in the Barclays U.S. Aggregate Bond Index generally outperformed relative to higher credit quality bonds in the Index during the year. In addition, high-yield bonds outperformed investment grade bonds as represented by the 7.44% return for the Barclays High-Yield Bond Index versus the –2.02% return of the Barclays U.S. Aggregate Bond Index for the year ended December 31, 2013.

Over the course of the year, the asset allocation adjustments within the LifePath 2030 Fund resulted in an approximate 2.0% and 0.3% decrease to domestic equity and international equity securities, respectively. The real estate allocation was reduced by an approximate 0.4% and the fixed income allocation was increased by an approximate 2.5%. The cash allocation was increased by an approximate 0.4%.

Financial highlights for this Fund can be found on pages 220-221.

68

State Farm LifePath 2040 Fund

Provide an illustration of the Fund’s investments.

LifePath 2040 Master Portfolio Composition*

* Illustrated by Security Type and based on the Master Portfolio’s investments in Affiliated Investment Companies of the Master Portfolio as of December 31, 2013. Please refer to the Schedule of Investments for the Master Portfolio for details concerning Master Portfolio holdings and the Master Portfolio Information, both found later in this report.

How did the State Farm LifePath 2040 Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Legacy Class A shares of the State Farm LifePath 2040 Fund had a total return without sales charges of 16.56%. The total returns for comparative indices of the LifePath Funds during the same time period were as follows: S&P 500 Index 32.39% and the Barclays U.S. Aggregate Bond Index –2.02%.

Because of the multi-asset structure of the LifePath 2040 Fund, a blended benchmark is also used for comparison purposes in the line graphs below. The blended benchmark is comprised of the indices shown below with weightings adjusted at the beginning of each quarter to approximately correspond with the LifePath 2040 Fund’s investments during the upcoming quarter. As of December 31, 2013, the total return of the LifePath 2040 Fund’s blended benchmark was 17.62% for the 1-year period and had the following composition:

Index	LifePath 2040 Fund’s Blended Benchmark Weighting
Russell 1000 Index		42.76	%
MSCI ACWI ex-U.S. IMI Index		23.04	%
Barclays U.S. Aggregate Bond Index		18.05	%
FTSE EPRA/NAREIT Developed Real Estate Index		8.10	%
Dow Jones-UBS Commodity Index		3.87	%
Russell 2000 Index		2.35	%
Barclays U.S. TIPS Index		1.83	%

69

The line graphs and tables below provide additional perspective for the State Farm LifePath 2040 Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		10.82	%		11.98	%		2.92	%	$	12,472
Class B		10.75	%		12.11	%		2.92	%	$	12,470

* From 05/01/2006.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflects a maximum sales charge of 5% at initial investment. Performance for Class B shares, and for the Fund’s other classes shown on the next page, may be greater than or less than the line shown above for Class A shares because of differing loads and expenses between share classes. Returns in the table above reflect maximum sales charges of: 5% for all Class A shares and for Class B shares at one year; and 2% for Class B shares at five years. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 See footnotes for LifePath 2050 Fund on page 74 for a description of the Indices.

2 On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 18.05% Barclays U.S. Aggregate Bond Index, 42.76% Russell 1000 Index, 2.35% Russell 2000 Index, 23.04% MSCI ACWI ex-U.S. IMI Index, 3.87% Dow Jones-UBS Commodity Index, 8.10% FTSE EPRA/NAREIT Developed Real Estate Index, and 1.83% Barclays U.S. TIPS Index. Unlike an investment in the LifePath 2040 Fund, a theoretical investmentin any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

70

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			10 YEAR or Life of Class (if shorter)*			Ending Value of a $10,000 Investment**
Legacy Class A		13.05	%		12.45	%		5.04	%	$	16,348
Legacy Class B		13.09	%		12.44	%		4.96	%	$	16,226
Institutional		16.90	%		13.43	%		5.65	%	$	17,326
Class R-1		16.27	%		12.76	%		5.28	%*	$	16,130
Class R-2		16.48	%		13.02	%		5.50	%*	$	16,453
Class R-3		16.71	%		13.58	%		5.92	%*	$	17,076

* Class R-1, Class R-2 and Class R-3 shares from 09/13/2004.

** For a 10 YEAR or Life of Class (if shorter) period.

The performance data quoted represents past performance and does not guarantee future results. Legacy Class A shares value and performance on the line graph reflects a maximum sales charge of 3% at initial investment. Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares performance may be greater than or less than the line shown for Legacy Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect maximum sales charges of: 3% for all Legacy Class A shares and for Legacy Class B shares at one year; and 2% for Legacy Class B shares at five years. Legacy Class B shares value and performance at ten years does not reflect conversion to Legacy Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See the preceding page for the performance of Class A and Class B shares.

1 See footnotes for LifePath 2050 Fund on page 74 for a description of the Indices.

2 On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 18.05% Barclays U.S. Aggregate Bond Index, 42.76% Russell 1000 Index, 2.35% Russell 2000 Index, 23.04% MSCI ACWI ex-U.S. IMI Index, 3.87% Dow Jones-UBS Commodity Index, 8.10% FTSE EPRA/NAREIT Developed Real Estate Index, and 1.83% Barclays U.S. TIPS Index. Unlike an investment in the LifePath 2040 Fund, a theoretical investment in any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

71

Performance Analysis

What factors helped and hindered performance of the LifePath 2040 Fund during the reporting period?

The main driver to performance for the LifePath 2040 Fund was its allocation to the Active Stock Master Portfolio – which made up approximately half of the LifePath 2040 Fund’s equity exposure. At the end of December 2013 this weighting stood at 38.70% of the LifePath 2040 Fund’s total net assets which is lower than the 44.71% weighting at the beginning of the year. As highlighted earlier, the Active Stock Master Portfolio is benchmarked to the Russell 1000 Index. At the end of 2013, the Active Stock Master Portfolio invested in 334 stocks of which 91% were from its benchmark Russell 1000 Index. The number of holdings decreased from 688 at the start of the year (which in turn increased the average individual security weightings). For the year, the Active Stock Master Portfolio outperformed its benchmark by 0.91% (34.02% vs. 33.11%, respectively). Overall, the Active Stock Master Portfolio generally maintained sector weights and a risk profile that was similar to its benchmark during the year.

The LifePath 2040 Fund’s exposure to foreign equity securities was 23.11% of total net assets as of December 31, 2013, comprised of the ACWI ex-U.S. Index Master Portfolio, International Tilts Master Portfolio, BlackRock Emerging Markets Fund, Inc., and four underlying iShares exchange-traded funds (ETF): iShares MSCI EAFE Index Fund, iShares MSCI Emerging Markets Index Fund, iShares MSCI Canada Index Fund, and the iShares MSCI EAFE Small Cap Index Fund. International equity markets underperformed large-cap U.S. equity markets during the reporting period.

The LifePath 2040 Fund also included an allocation to the BlackRock Commodity Strategies Fund. Commodity prices generally declined during the period, with the Dow Jones-UBS Commodity Index falling –9.52% for the year ended December 31, 2013. This allocation increased from 3.62% of the LifePath 2040 Fund’s total net assets at the beginning of the year to 3.96% of total net assets by December 31, 2013.

The LifePath 2040 Fund’s exposure to small-cap U.S. equity securities via investment in the Master Small Cap Index Series at the end of December 2013 was 2.66% of total net assets. Small-cap stocks outperformed relative to large- and mid-cap stocks (as represented by the S&P 500 Index and Russell MidCap Index) for the reporting period.

From a fixed-income perspective, the LifePath 2040 Fund held 19.46% of its total net assets in the CoreAlpha Bond Master Portfolio which is up from 16.01% at the beginning of the year. As highlighted earlier, the CoreAlpha Bond Master Portfolio underperformed the return for its respective benchmark, the Barclays U.S. Aggregate Bond Index during 2013 by 0.37% (–2.39% vs. –2.02% respectively). As of December 31, 2013, there were 317 issuers and 1,151 securities comprising the CoreAlpha Bond Master Portfolio.

During 2013, lower credit quality bonds in the Barclays U.S. Aggregate Bond Index generally outperformed relative to higher credit quality bonds in the Index during the year. In addition, high-yield bonds outperformed investment grade bonds as represented by the 7.44% return for the Barclays High-Yield Bond Index versus the –2.02% return of the Barclays U.S. Aggregate Bond Index for the year ended December 31, 2013.

Over the course of the year, the asset allocation adjustments within the LifePath 2040 Fund resulted in an approximate 2.5% and 0.2% decrease to domestic equity and international equity securities, respectively. The real estate allocation was reduced by an approximate 0.3% and the fixed income allocation was increased by an approximate 2.6%. The cash allocation was decreased by an approximate 0.1%.

Financial highlights for this Fund can be found on pages 222-223.

72

State Farm LifePath 2050 Fund

Provide an illustration of the Fund’s investments.

LifePath 2050 Master Portfolio Composition*

* Illustrated by Security Type and based on the Master Portfolio’s investments in Affiliated Investment Companies of the Master Portfolio as of December 31, 2013. Please refer to the Schedule of Investments for the Master Portfolio for details concerning Master Portfolio holdings and the Master Portfolio Information, both found later in this report.

How did the State Farm LifePath 2050 Fund perform during the reporting period?

For the 1-year period ended December 31, 2013, Class A shares of the State Farm LifePath 2050 Fund had a total return without sales charges of 19.34%. The total returns for comparative indices of the LifePath Funds during the same time period were as follows: S&P 500 Index 32.39% and the Barclays U.S. Aggregate Bond Index –2.02%.

Because of the multi- asset structure of the LifePath 2050 Fund, a blended benchmark is also used for comparison purposes in the line graph below. The blended benchmark is comprised of the indices shown below with weightings adjusted at the beginning of each quarter to approximately correspond with the LifePath 2050 Fund’s investments during the upcoming quarter. As of December 31, 2013, the total return of the LifePath 2050 Fund’s blended benchmark was 20.49% for the 1-year period and had the following composition:

Index	LifePath 2050 Fund’s Blended Benchmark Weighting
Russell 1000 Index		48.61	%
MSCI ACWI ex-U.S. IMI Index		26.37	%
FTSE EPRA/NAREIT Developed Real Estate Index		10.23	%
Barclays U.S. Aggregate Bond Index		9.10	%
Dow Jones-UBS Commodity Index		3.90	%
Russell 2000 Index		1.79	%

73

The line graph and table below provide additional perspective for the State Farm LifePath 2050 Fund’s long term results.

Comparison of change in value of $10,000 investment

for the periods ended December 31, including applicable sales charges

Fund’s Average Annual Total Return and Value as of December 31, 2013
	1 YEAR			5 YEAR			Life of Class*			Ending Value of a $10,000 Investment**
Class A		13.34	%		13.05	%		5.00	%	$	13,056
Class R-1		19.02	%		13.87	%		5.70	%	$	13,539
Class R-2		19.21	%		14.08	%		5.90	%	$	13,676

* From 07/14/2008.

** For a Life of Class period.

The performance data quoted represents past performance and does not guarantee future results. Class A shares value and performance on the line graph reflect a maximum sales charge of 5% at initial investment. Class R-1 and Class R-2 shares performance may be greater than or less than the line shown for Class A shares because of differing loads and expenses between the share classes. Returns in the table above reflect a maximum sales charge of 5% for all Class A shares. These figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate taxable bond market, including government and corporate debt securities, mortgage pass-through debt securities and asset-backed debt securities with maturities greater than one year.

2 The S&P 500 Index tracks the common stock performance of large U.S. companies in the manufacturing, utilities, transportation and financial industries. In total, the S&P 500 is comprised of 500 common stocks. The Indices represent unmanaged groups of securities that differ from the composition of the LifePath Funds. Unlike an investment in the LifePath Funds, a theoretical investment in any of the Indices does not reflect any expenses. It is not possible to invest directly in an index.

3 On December 31, 2013, the Blended Benchmark computed by State Farm Investment Management Corp. consisted of 9.10% Barclays U.S. Aggregate Bond Index, 48.61% Russell 1000 Index, 1.79% Russell 2000 Index, 26.37% MSCI ACWI ex-U.S. IMI Index, 3.90% Dow Jones-UBS Commodity Index, and 10.23% FTSE EPRA/NAREIT Developed Real Estate Index. Unlike an investment in the LifePath 2050 Fund, a theoretical investment in any of the Indices and the Blended Benchmark does not reflect any expenses. It is not possible to invest directly in an index or the Blended Benchmark.

74

Performance Analysis

What factors helped and hindered performance of the LifePath 2050 Fund during the reporting period?

The main driver to performance for the LifePath 2050 Fund was its allocation to the Active Stock Master Portfolio – which made up approximately half of the LifePath 2050 Fund’s equity exposure. At the end of December 2013 this weighting stood at 42.57% of the LifePath 2050 Fund’s total net assets which is down from the 50.98% weighting at the beginning of the year. As highlighted earlier, the Active Stock Master Portfolio is benchmarked to the Russell 1000 Index. At the end of 2013, the Active Stock Master Portfolio invested in 334 stocks of which 91% were from its benchmark Russell 1000 Index. The number of holdings decreased from 688 at the start of the year (which in turn increased the average individual security weightings). For the year, the Active Stock Master Portfolio outperformed its benchmark by 0.91% (34.02% vs. 33.11%, respectively). Overall, the Active Stock Master Portfolio generally maintained sector weights and a risk profile that was similar to its benchmark during the year.

The LifePath 2050 Fund’s exposure to foreign equity securities was 26.50% of total net assets as of December 31, 2013, comprised of the ACWI ex-U.S. Index Master Portfolio, International Tilts Master Portfolio, BlackRock Emerging Markets Fund, Inc., and four underlying iShares exchange-traded funds (ETF): iShares MSCI EAFE Index Fund, iShares MSCI Emerging Markets Index Fund, iShares MSCI Canada Index Fund, and the iShares MSCI EAFE Small Cap Index Fund. International equity markets underperformed large-cap U.S. equity markets during the reporting period.

The LifePath 2050 Fund also included an allocation to the BlackRock Commodity Strategies Fund. Commodity prices generally declined during the period, with the Dow Jones-UBS Commodity Index falling –9.52% for the year ended December 31, 2013. This allocation increased from 3.68% of the LifePath 2050 Fund’s total net assets at the beginning of the year to 3.87% of total net assets by December 31, 2013.

The LifePath 2050 Fund’s exposure to small-cap U.S. equity securities via investment in the Master Small Cap Index Series at the end of December 2013 was 2.06% of total net assets. Small-cap stocks outperformed relative to large- and mid-cap stocks (as represented by the S&P 500 Index and Russell MidCap Index) for the reporting period.

From a fixed-income perspective, the LifePath 2050 Fund held 9.69% of its total net assets in the CoreAlpha Bond Master Portfolio which is up from the 7.04% weighting at the beginning of the year. There was no investment allocation to the iShares Barclays TIPS Bond Fund within the LifePath 2050 Fund in 2013.

Over the course of the year, the asset allocation adjustments within the LifePath 2050 Fund resulted in an approximate 3.0% decrease to domestic equity and an approximate 0.4% increase in international equity securities. The commodities allocation was increased by an approximate 0.2% and the fixed income allocation was increased by an approximate 2.6%.

Financial highlights for this Fund can be found on pages 224-225.

75

Expense Example (unaudited)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and certain redemptions; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; shareholder servicing fees; and other Fund expenses. The Example in the following table for each Fund below is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as stated in the table for each Fund.

Actual Expenses

The Actual information in the table under each Fund name below provides information about actual account values and actual expenses for each Class of shares. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value for a Fund Class by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the Actual information line under the heading entitled “Expenses Paid During Period” for the applicable Fund Class to estimate the expenses you paid on your account for that Fund Class during the period. If your account has multiple Fund positions, add up the results calculated for each Fund position by Class within your account to estimate the expenses you paid on your total account value. A potential account fee of $10 per calendar quarter is not included in the expenses shown in the table. This fee will be charged to an account holding Class A, Class B, Legacy Class A, Legacy Class B or Institutional shares (other than a SEP IRA, SIMPLE IRA, Archer Medical Savings Account, Tax Sheltered Account under §403(b)(7) of the Internal Revenue Code or an account held under other employer-sponsored qualified retirement plans) if the balance in the account falls below $5,000 at the close of business on the second business day of the last month of the calendar quarter, unless the account has been open for less than a year as of the second business day of the last month of the calendar quarter. You should consider any account fee you incurred when estimating the total ongoing expenses paid over the period and the impact of this fee on your ending account value. This additional fee has the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

The Hypothetical information in the table under each Fund name below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio by Class and an assumed rate of return of 5% per year before expenses, which is not the actual return of the Class indicated. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A potential account fee of $10 per calendar quarter is not included in the expenses shown in the table. This fee will be charged to an account holding Class A, Class B, Legacy Class A, Legacy Class B or Institutional shares (other than a SEP IRA, SIMPLE IRA, Archer Medical Savings Account, Tax Sheltered Account under §403(b)(7) of the Internal Revenue Code or an account held under other employer-sponsored qualified retirement plans) if the balance in the account falls below $5,000 at the close of business on the second business day of the last month of the calendar quarter, unless the account has been open for less than a year as of the second business day of the last month of the calendar quarter. You should consider any account fee that you incurred when estimating the total ongoing expenses paid over the period and the impact of this fee on your ending account value. This additional fee has the effect of increasing the costs of investing.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) applicable to Class A, Class B, Legacy Class A, and Legacy Class B shares. Therefore, the Hypothetical information in the table under each Fund name is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

76

State Farm Equity Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,159.40		1.16	%	$	6.31
Class B Shares	$	1,000.00	$	1,156.12		1.86	%	$	10.11
Legacy Class A Shares	$	1,000.00	$	1,159.37		1.16	%	$	6.31
Legacy Class B Shares	$	1,000.00	$	1,156.74		1.56	%	$	8.48
Institutional Shares	$	1,000.00	$	1,161.07		0.91	%	$	4.96
Class R-1 Shares	$	1,000.00	$	1,158.39		1.48	%	$	8.05
Class R-2 Shares	$	1,000.00	$	1,158.28		1.28	%	$	6.96
Class R-3 Shares	$	1,000.00	$	1,159.34		0.98	%	$	5.33
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,019.36		1.16	%	$	5.90
Class B Shares	$	1,000.00	$	1,015.83		1.86	%	$	9.45
Legacy Class A Shares	$	1,000.00	$	1,019.36		1.16	%	$	5.90
Legacy Class B Shares	$	1,000.00	$	1,017.34		1.56	%	$	7.93
Institutional Shares	$	1,000.00	$	1,020.62		0.91	%	$	4.63
Class R-1 Shares	$	1,000.00	$	1,017.74		1.48	%	$	7.53
Class R-2 Shares	$	1,000.00	$	1,018.75		1.28	%	$	6.51
Class R-3 Shares	$	1,000.00	$	1,020.27		0.98	%	$	4.99

State Farm Small/Mid Cap Equity Fund²

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,169.77		1.40	%	$	7.66
Class B Shares	$	1,000.00	$	1,167.81		1.72	%	$	9.40
Legacy Class A Shares	$	1,000.00	$	1,169.14		1.40	%	$	7.65
Legacy Class B Shares	$	1,000.00	$	1,166.71		1.80	%	$	9.83
Institutional Shares	$	1,000.00	$	1,170.41		1.15	%	$	6.29
Class R-1 Shares	$	1,000.00	$	1,167.80		1.72	%	$	9.40
Class R-2 Shares	$	1,000.00	$	1,168.56		1.52	%	$	8.31
Class R-3 Shares	$	1,000.00	$	1,169.61		1.22	%	$	6.67
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,018.15		1.40	%	$	7.12
Class B Shares	$	1,000.00	$	1,016.53		1.72	%	$	8.74
Legacy Class A Shares	$	1,000.00	$	1,018.15		1.40	%	$	7.12
Legacy Class B Shares	$	1,000.00	$	1,016.13		1.80	%	$	9.15
Institutional Shares	$	1,000.00	$	1,019.41		1.15	%	$	5.85
Class R-1 Shares	$	1,000.00	$	1,016.53		1.72	%	$	8.74
Class R-2 Shares	$	1,000.00	$	1,017.54		1.52	%	$	7.73
Class R-3 Shares	$	1,000.00	$	1,019.06		1.22	%	$	6.21

77

State Farm International Equity Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,155.30		1.51	%	$	8.20
Class B Shares	$	1,000.00	$	1,153.77		1.86	%	$	10.10
Legacy Class A Shares	$	1,000.00	$	1,155.51		1.51	%	$	8.20
Legacy Class B Shares	$	1,000.00	$	1,153.43		1.91	%	$	10.37
Institutional Shares	$	1,000.00	$	1,157.09		1.26	%	$	6.85
Class R-1 Shares	$	1,000.00	$	1,153.72		1.83	%	$	9.93
Class R-2 Shares	$	1,000.00	$	1,155.11		1.64	%	$	8.91
Class R-3 Shares	$	1,000.00	$	1,157.55		1.33	%	$	7.23
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,017.59		1.51	%	$	7.68
Class B Shares	$	1,000.00	$	1,015.83		1.86	%	$	9.45
Legacy Class A Shares	$	1,000.00	$	1,017.59		1.51	%	$	7.68
Legacy Class B Shares	$	1,000.00	$	1,015.58		1.91	%	$	9.70
Institutional Shares	$	1,000.00	$	1,018.85		1.26	%	$	6.41
Class R-1 Shares	$	1,000.00	$	1,015.98		1.83	%	$	9.30
Class R-2 Shares	$	1,000.00	$	1,016.94		1.64	%	$	8.34
Class R-3 Shares	$	1,000.00	$	1,018.50		1.33	%	$	6.77

State Farm S&P 500 Index Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,158.83		0.75	%	$	4.08
Class B Shares	$	1,000.00	$	1,154.89		1.45	%	$	7.88
Legacy Class A Shares	$	1,000.00	$	1,158.12		0.75	%	$	4.08
Legacy Class B Shares	$	1,000.00	$	1,156.78		1.15	%	$	6.25
Institutional Shares	$	1,000.00	$	1,160.34		0.50	%	$	2.72
Class R-1 Shares	$	1,000.00	$	1,157.26		1.07	%	$	5.82
Class R-2 Shares	$	1,000.00	$	1,157.50		0.87	%	$	4.73
Class R-3 Shares	$	1,000.00	$	1,160.11		0.57	%	$	3.10
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,021.42		0.75	%	$	3.82
Class B Shares	$	1,000.00	$	1,017.90		1.45	%	$	7.37
Legacy Class A Shares	$	1,000.00	$	1,021.42		0.75	%	$	3.82
Legacy Class B Shares	$	1,000.00	$	1,019.41		1.15	%	$	5.85
Institutional Shares	$	1,000.00	$	1,022.68		0.50	%	$	2.55
Class R-1 Shares	$	1,000.00	$	1,019.81		1.07	%	$	5.45
Class R-2 Shares	$	1,000.00	$	1,020.82		0.87	%	$	4.43
Class R-3 Shares	$	1,000.00	$	1,022.33		0.57	%	$	2.91

78

State Farm Small Cap Index Fund³

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,192.80		0.94	%	$	5.20
Class B Shares	$	1,000.00	$	1,189.87		1.36	%	$	7.51
Legacy Class A Shares	$	1,000.00	$	1,192.65		0.94	%	$	5.20
Legacy Class B Shares	$	1,000.00	$	1,190.51		1.34	%	$	7.40
Institutional Shares	$	1,000.00	$	1,194.45		0.69	%	$	3.82
Class R-1 Shares	$	1,000.00	$	1,191.25		1.26	%	$	6.96
Class R-2 Shares	$	1,000.00	$	1,192.34		1.06	%	$	5.86
Class R-3 Shares	$	1,000.00	$	1,193.64		0.76	%	$	4.20
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,020.47		0.94	%	$	4.79
Class B Shares	$	1,000.00	$	1,018.35		1.36	%	$	6.92
Legacy Class A Shares	$	1,000.00	$	1,020.47		0.94	%	$	4.79
Legacy Class B Shares	$	1,000.00	$	1,018.45		1.34	%	$	6.82
Institutional Shares	$	1,000.00	$	1,021.73		0.69	%	$	3.52
Class R-1 Shares	$	1,000.00	$	1,018.85		1.26	%	$	6.41
Class R-2 Shares	$	1,000.00	$	1,019.86		1.06	%	$	5.40
Class R-3 Shares	$	1,000.00	$	1,021.37		0.76	%	$	3.87

State Farm International Index Fund⁴

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,169.99		1.19	%	$	6.51
Class B Shares	$	1,000.00	$	1,168.32		1.53	%	$	8.36
Legacy Class A Shares	$	1,000.00	$	1,170.92		1.19	%	$	6.51
Legacy Class B Shares	$	1,000.00	$	1,168.27		1.59	%	$	8.69
Institutional Shares	$	1,000.00	$	1,171.95		0.94	%	$	5.15
Class R-1 Shares	$	1,000.00	$	1,168.76		1.51	%	$	8.25
Class R-2 Shares	$	1,000.00	$	1,168.98		1.31	%	$	7.16
Class R-3 Shares	$	1,000.00	$	1,171.00		1.01	%	$	5.53
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,019.21		1.19	%	$	6.06
Class B Shares	$	1,000.00	$	1,017.49		1.53	%	$	7.78
Legacy Class A Shares	$	1,000.00	$	1,019.21		1.19	%	$	6.06
Legacy Class B Shares	$	1,000.00	$	1,017.19		1.59	%	$	8.08
Institutional Shares	$	1,000.00	$	1,020.47		0.94	%	$	4.79
Class R-1 Shares	$	1,000.00	$	1,017.59		1.51	%	$	7.68
Class R-2 Shares	$	1,000.00	$	1,018.60		1.31	%	$	6.67
Class R-3 Shares	$	1,000.00	$	1,020.11		1.01	%	$	5.14

79

State Farm Equity and Bond Fund

	Beginning Account Value July 1,  2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 20135			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,097.70		0.97	%	$	5.13
Class B Shares	$	1,000.00	$	1,095.25		1.37	%	$	7.24
Legacy Class A Shares	$	1,000.00	$	1,097.79		0.97	%	$	5.13
Legacy Class B Shares	$	1,000.00	$	1,096.36		1.37	%	$	7.24
Institutional Shares	$	1,000.00	$	1,100.05		0.72	%	$	3.81
Class R-1 Shares	$	1,000.00	$	1,096.94		1.29	%	$	6.82
Class R-2 Shares	$	1,000.00	$	1,096.91		1.09	%	$	5.76
Class R-3 Shares	$	1,000.00	$	1,099.55		0.79	%	$	4.18
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,020.32		0.97	%	$	4.94
Class B Shares	$	1,000.00	$	1,018.30		1.37	%	$	6.97
Legacy Class A Shares	$	1,000.00	$	1,020.32		0.97	%	$	4.94
Legacy Class B Shares	$	1,000.00	$	1,018.30		1.37	%	$	6.97
Institutional Shares	$	1,000.00	$	1,021.58		0.72	%	$	3.67
Class R-1 Shares	$	1,000.00	$	1,018.70		1.29	%	$	6.56
Class R-2 Shares	$	1,000.00	$	1,019.71		1.09	%	$	5.55
Class R-3 Shares	$	1,000.00	$	1,021.22		0.79	%	$	4.02

State Farm Bond Fund

	Beginning Account Value July 1,  2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,000.75		0.67	%	$	3.38
Class B Shares	$	1,000.00	$	998.71		1.07	%	$	5.39
Legacy Class A Shares	$	1,000.00	$	1,000.77		0.67	%	$	3.38
Legacy Class B Shares	$	1,000.00	$	997.86		1.07	%	$	5.39
Institutional Shares	$	1,000.00	$	1,002.00		0.42	%	$	2.12
Class R-1 Shares	$	1,000.00	$	999.13		0.99	%	$	4.99
Class R-2 Shares	$	1,000.00	$	1,000.13		0.79	%	$	3.98
Class R-3 Shares	$	1,000.00	$	1,001.68		0.49	%	$	2.47
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,021.83		0.67	%	$	3.41
Class B Shares	$	1,000.00	$	1,019.81		1.07	%	$	5.45
Legacy Class A Shares	$	1,000.00	$	1,021.83		0.67	%	$	3.41
Legacy Class B Shares	$	1,000.00	$	1,019.81		1.07	%	$	5.45
Institutional Shares	$	1,000.00	$	1,023.09		0.42	%	$	2.14
Class R-1 Shares	$	1,000.00	$	1,020.21		0.99	%	$	5.04
Class R-2 Shares	$	1,000.00	$	1,021.22		0.79	%	$	4.02
Class R-3 Shares	$	1,000.00	$	1,022.74		0.49	%	$	2.50

80

State Farm Tax Advantaged Bond Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,021.00		0.68	%	$	3.46
Class B Shares	$	1,000.00	$	1,016.93		1.08	%	$	5.49
Legacy Class A Shares	$	1,000.00	$	1,021.01		0.68	%	$	3.46
Legacy Class B Shares	$	1,000.00	$	1,016.91		1.08	%	$	5.49
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,021.78		0.68	%	$	3.47
Class B Shares	$	1,000.00	$	1,019.76		1.08	%	$	5.50
Legacy Class A Shares	$	1,000.00	$	1,021.78		0.68	%	$	3.47
Legacy Class B Shares	$	1,000.00	$	1,019.76		1.08	%	$	5.50

State Farm Money Market Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,000.00		0.07	%	$	0.35
Class B Shares	$	1,000.00	$	1,000.00		0.07	%	$	0.35
Legacy Class A Shares	$	1,000.00	$	1,000.00		0.07	%	$	0.35
Legacy Class B Shares	$	1,000.00	$	1,000.00		0.07	%	$	0.35
Institutional Shares	$	1,000.00	$	1,000.02		0.07	%	$	0.35
Class R-1 Shares	$	1,000.00	$	1,000.00		0.07	%	$	0.35
Class R-2 Shares	$	1,000.00	$	1,000.00		0.07	%	$	0.35
Class R-3 Shares	$	1,000.00	$	1,000.03		0.07	%	$	0.35
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,024.85		0.07	%	$	0.36
Class B Shares	$	1,000.00	$	1,024.85		0.07	%	$	0.36
Legacy Class A Shares	$	1,000.00	$	1,024.85		0.07	%	$	0.36
Legacy Class B Shares	$	1,000.00	$	1,024.85		0.07	%	$	0.36
Institutional Shares	$	1,000.00	$	1,024.85		0.07	%	$	0.36
Class R-1 Shares	$	1,000.00	$	1,024.85		0.07	%	$	0.36
Class R-2 Shares	$	1,000.00	$	1,024.85		0.07	%	$	0.36
Class R-3 Shares	$	1,000.00	$	1,024.85		0.07	%	$	0.36

81

State Farm LifePath Retirement Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 20136			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,058.82		1.09	%	$	5.66
Class B Shares	$	1,000.00	$	1,057.60		1.38	%	$	7.16
Legacy Class A Shares	$	1,000.00	$	1,059.11		1.08	%	$	5.61
Legacy Class B Shares	$	1,000.00	$	1,056.45		1.49	%	$	7.72
Institutional Shares	$	1,000.00	$	1,060.32		0.83	%	$	4.31
Class R-1 Shares	$	1,000.00	$	1,057.59		1.39	%	$	7.21
Class R-2 Shares	$	1,000.00	$	1,058.26		1.20	%	$	6.23
Class R-3 Shares	$	1,000.00	$	1,060.84		0.90	%	$	4.68
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,019.71		1.09	%	$	5.55
Class B Shares	$	1,000.00	$	1,018.25		1.38	%	$	7.02
Legacy Class A Shares	$	1,000.00	$	1,019.76		1.08	%	$	5.50
Legacy Class B Shares	$	1,000.00	$	1,017.69		1.49	%	$	7.58
Institutional Shares	$	1,000.00	$	1,021.02		0.83	%	$	4.23
Class R-1 Shares	$	1,000.00	$	1,018.20		1.39	%	$	7.07
Class R-2 Shares	$	1,000.00	$	1,019.16		1.20	%	$	6.11
Class R-3 Shares	$	1,000.00	$	1,020.67		0.90	%	$	4.58

State Farm LifePath 2020 Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 20136			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,080.16		1.05	%	$	5.51
Class B Shares	$	1,000.00	$	1,076.43		1.75	%	$	9.16
Legacy Class A Shares	$	1,000.00	$	1,079.97		1.05	%	$	5.50
Legacy Class B Shares	$	1,000.00	$	1,077.34		1.46	%	$	7.64
Institutional Shares	$	1,000.00	$	1,081.33		0.80	%	$	4.20
Class R-1 Shares	$	1,000.00	$	1,078.27		1.37	%	$	7.18
Class R-2 Shares	$	1,000.00	$	1,078.85		1.17	%	$	6.13
Class R-3 Shares	$	1,000.00	$	1,081.00		0.88	%	$	4.62
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,019.91		1.05	%	$	5.35
Class B Shares	$	1,000.00	$	1,016.38		1.75	%	$	8.89
Legacy Class A Shares	$	1,000.00	$	1,019.91		1.05	%	$	5.35
Legacy Class B Shares	$	1,000.00	$	1,017.85		1.46	%	$	7.43
Institutional Shares	$	1,000.00	$	1,021.17		0.80	%	$	4.08
Class R-1 Shares	$	1,000.00	$	1,018.30		1.37	%	$	6.97
Class R-2 Shares	$	1,000.00	$	1,019.31		1.17	%	$	5.96
Class R-3 Shares	$	1,000.00	$	1,020.77		0.88	%	$	4.48

82

State Farm LifePath 2030 Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 20136			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,103.73		1.03	%	$	5.46
Class B Shares	$	1,000.00	$	1,100.12		1.74	%	$	9.21
Legacy Class A Shares	$	1,000.00	$	1,103.20		1.04	%	$	5.51
Legacy Class B Shares	$	1,000.00	$	1,101.23		1.45	%	$	7.68
Institutional Shares	$	1,000.00	$	1,104.58		0.79	%	$	4.19
Class R-1 Shares	$	1,000.00	$	1,101.85		1.35	%	$	7.15
Class R-2 Shares	$	1,000.00	$	1,103.53		1.16	%	$	6.15
Class R-3 Shares	$	1,000.00	$	1,104.64		0.87	%	$	4.62
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,020.01		1.03	%	$	5.24
Class B Shares	$	1,000.00	$	1,016.43		1.74	%	$	8.84
Legacy Class A Shares	$	1,000.00	$	1,019.96		1.04	%	$	5.30
Legacy Class B Shares	$	1,000.00	$	1,017.90		1.45	%	$	7.38
Institutional Shares	$	1,000.00	$	1,021.22		0.79	%	$	4.02
Class R-1 Shares	$	1,000.00	$	1,018.40		1.35	%	$	6.87
Class R-2 Shares	$	1,000.00	$	1,019.36		1.16	%	$	5.90
Class R-3 Shares	$	1,000.00	$	1,020.82		0.87	%	$	4.43

State Farm LifePath 2040 Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 20136			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,022.99		1.03	%	$	5.51
Class B Shares	$	1,000.00	$	1,118.66		1.73	%	$	9.24
Legacy Class A Shares	$	1,000.00	$	1,122.22		1.03	%	$	5.51
Legacy Class B Shares	$	1,000.00	$	1,119.95		1.44	%	$	7.69
Institutional Shares	$	1,000.00	$	1,124.20		0.78	%	$	4.18
Class R-1 Shares	$	1,000.00	$	1,121.42		1.35	%	$	7.22
Class R-2 Shares	$	1,000.00	$	1,122.08		1.15	%	$	6.15
Class R-3 Shares	$	1,000.00	$	1,123.54		0.85	%	$	4.55
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,020.01		1.03	%	$	5.24
Class B Shares	$	1,000.00	$	1,016.48		1.73	%	$	8.79
Legacy Class A Shares	$	1,000.00	$	1,020.01		1.03	%	$	5.24
Legacy Class B Shares	$	1,000.00	$	1,017.95		1.44	%	$	7.32
Institutional Shares	$	1,000.00	$	1,021.27		0.78	%	$	3.97
Class R-1 Shares	$	1,000.00	$	1,018.40		1.35	%	$	6.87
Class R-2 Shares	$	1,000.00	$	1,019.41		1.15	%	$	5.85
Class R-3 Shares	$	1,000.00	$	1,020.92		0.85	%	$	4.33

83

State Farm LifePath 2050 Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 20136			Expenses Paid During Period July 1, 2013 to December 31, 20131
Actual
Class A Shares	$	1,000.00	$	1,137.86		1.08	%	$	5.82
Class R-1 Shares	$	1,000.00	$	1,137.24		1.41	%	$	7.60
Class R-2 Shares	$	1,000.00	$	1,137.94		1.22	%	$	6.57
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,019.76		1.08	%	$	5.50
Class R-1 Shares	$	1,000.00	$	1,018.10		1.41	%	$	7.17
Class R-2 Shares	$	1,000.00	$	1,019.06		1.22	%	$	6.21

1 Expenses are equal to the applicable Fund’s annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

2 Restated Expense Example Table for the State Farm Small/Mid Cap Equity Fund: Effective November 11, 2013, the 12b-1 fee for the State Farm Small/Mid Cap Equity Fund, Class B Shares was reduced from 0.60% to 0.50%. The restated example reflects expenses as if the 12b-1 fee reduction had been in place during the entire period from July 1, 2013 to December 31, 2013 as follows:

State Farm Small/Mid Cap Equity Fund

	Beginning Account Value July 1,  2013		Ending Account Value December 31,  2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 2013*
Actual
Class B Shares	$	1,000.00	$	1,168.23		1.65	%	$	9.02
Hypothetical (5% return before expenses)
Class B Shares	$	1,000.00	$	1,016.89		1.65	%	$	8.39

* Expenses are equal to the Fund’s annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

84

3 Restated Expense Example Table for the State Farm Small Cap Index Fund: Effective October 1, 2013, the investment advisory and management services feefor the State Farm Small Cap Index Fund was reduced from 0.35% to 0.33% for all share classes and the 12b-1 fee for Class B shares was also reduced from 0.95% to 0.65%. Effective November 11, 2013, the 12b-1 fee for Class B Shares was reduced from 0.65% to 0.45%. Effective December 9, 2013, the 12b-1 fee for Class B Shares was further reduced from 0.45% to 0.00%. Effective January 1, 2014, the 12b-1 fee for Class B Shares will increase from 0.00% to 0.45%. The restated example reflects expenses as if the reduction in the investment advisory and management services fee for all share classes and the 12b-1 fee increase effective January 1, 2014 for Class B Shares had been in place during the entire period from July 1, 2013 to December 31, 2013 as follows:

State Farm Small Cap Index Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Annualized Expense Ratio Based on the Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 2013*
Actual
Class A Shares	$	1,000.00	$	1,192.86		0.93	%	$	5.14
Class B Shares	$	1,000.00	$	1,191.25		1.13	%	$	6.24
Legacy Class A Shares	$	1,000.00	$	1,192.71		0.93	%	$	5.14
Legacy Class B Shares	$	1,000.00	$	1,190.57		1.33	%	$	7.34
Institutional Shares	$	1,000.00	$	1,194.51		0.68	%	$	3.76
Class R-1 Shares	$	1,000.00	$	1,191.31		1.25	%	$	6.90
Class R-2 Shares	$	1,000.00	$	1,192.40		1.05	%	$	5.80
Class R-3 Shares	$	1,000.00	$	1,197.81		0.75	%	$	4.15
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,020.52		0.93	%	$	4.74
Class B Shares	$	1,000.00	$	1,019.51		1.13	%	$	5.75
Legacy Class A Shares	$	1,000.00	$	1,020.52		0.93	%	$	4.74
Legacy Class B Shares	$	1,000.00	$	1,018.50		1.33	%	$	6.77
Institutional Shares	$	1,000.00	$	1,021.78		0.68	%	$	3.47
Class R-1 Shares	$	1,000.00	$	1,018.90		1.25	%	$	6.36
Class R-2 Shares	$	1,000.00	$	1,019.91		1.05	%	$	5.35
Class R-3 Shares	$	1,000.00	$	1,021.42		0.75	%	$	3.82

* Expenses are equal to the Fund’s annualized expense ratio (provided in the table), multiplied by the average account value over the period, multipliedby184/365 (to reflect the one-half year period).

85

4 Restated Expense Example Table for the State Farm International Index Fund: Effective October 1, 2013, the investment advisory and management services fee for the State Farm International Index Fund was reduced from 0.50% to 0.48% for all share classes. Effective November 11, 2013, the 12b-1 fee for Class B Shares was reduced from 0.65% to 0.45%. The restated example reflects expenses as if the investment advisory and management services fee reduction forall share classes and the 12b-1 fee reduction for Class B Shares had been in place during the entire period from July 1, 2013 to December 31, 2013 as follows:

State Farm International Index Fund

	Beginning Account Value July 1, 2013		Ending Account Value December 31, 2013		Expenses Paid During Period July 1, 2013 to December 31, 2013			Expenses Paid During Period July 1, 2013 to December 31, 2013*
Actual
Class A Shares	$	1,000.00	$	1,170.05		1.18	%	$	6.45
Class B Shares	$	1,000.00	$	1,169.32		1.36	%	$	7.44
Legacy Class A Shares	$	1,000.00	$	1,170.98		1.18	%	$	6.46
Legacy Class B Shares	$	1,000.00	$	1,168.33		1.58	%	$	8.64
Institutional Shares	$	1,000.00	$	1,172.01		0.93	%	$	5.09
Class R-1 Shares	$	1,000.00	$	1,168.82		1.50	%	$	8.20
Class R-2 Shares	$	1,000.00	$	1,169.03		1.30	%	$	7.11
Class R-3 Shares	$	1,000.00	$	1,171.06		1.00	%	$	5.47
Hypothetical (5% return before expenses)
Class A Shares	$	1,000.00	$	1,019.26		1.18	%	$	6.01
Class B Shares	$	1,000.00	$	1,018.35		1.36	%	$	6.92
Legacy Class A Shares	$	1,000.00	$	1,019.26		1.18	%	$	6.01
Legacy Class B Shares	$	1,000.00	$	1,017.24		1.58	%	$	8.03
Institutional Shares	$	1,000.00	$	1,020.52		0.93	%	$	4.74
Class R-1 Shares	$	1,000.00	$	1,017.64		1.50	%	$	7.63
Class R-2 Shares	$	1,000.00	$	1,018.65		1.30	%	$	6.61
Class R-3 Shares	$	1,000.00	$	1,020.16		1.00	%	$	5.09

* Expenses are equal to the Fund’s annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

5 Ratio also reflects 60% of the State Farm Equity Fund Institutional Shares expenses plus 40% of the State Farm Bond Fund Institutional Shares expenses. The State Farm Equity and Bond Fund targets a 60%/40% investment ratio between the State Farm Equity Fund and the State Farm Bond Fund. The ratio may vary slightly from 60%/40% throughout the year.

6 Ratio reflects the expenses of both the Fund and its corresponding Master Portfolio.

86

STATE FARM MUTUAL FUND TRUST EQUITY FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Shares		Value
Common Stocks (98.73%)
Consumer Discretionary (17.02%)
Advance Auto Parts Inc.		35,875	$	3,970,645
Amazon.com Inc. (a)		6,100		2,432,619
Best Buy Co. Inc.		68,500		2,731,780
Chipotle Mexican Grill Inc. (a)		4,100		2,184,398
Comcast Corp. Class A		131,100		6,812,612
Delphi Automotive PLC		50,200		3,018,526
Ford Motor Co.		129,200		1,993,556
Fossil Group Inc. (a)		16,600		1,991,004
GAP Inc., The		43,700		1,707,796
Garmin Ltd.		45,900		2,121,498
Goodyear Tire & Rubber Co., The		187,700		4,476,645
H&R Block Inc.		49,200		1,428,768
Hanesbrands Inc.		33,900		2,382,153
Home Depot Inc., The		31,400		2,585,476
Lear Corp.		27,400		2,218,578
PetSmart Inc.		11,200		814,800
Polaris Industries Inc.		32,600		4,747,864
Priceline.com Inc. (a)		1,900		2,208,560
Starbucks Corp.		26,400		2,069,496
Target Corp.		92,100		5,827,167
Time Warner Inc.		59,700		4,162,284
TJX Companies Inc.		43,000		2,740,390
Twenty-First Century Fox Inc. Class A		71,700		2,522,406
Viacom Inc. Class B		47,500		4,148,650
				71,297,671
Consumer Staples (8.81%)
Colgate-Palmolive Co.		87,200		5,686,312
Costco Wholesale Corp.		18,000		2,142,180
Estee Lauder Companies Inc. Class A, The		32,200		2,425,304
General Mills Inc.		93,800		4,681,558
Herbalife Ltd.		30,900		2,431,830
Hershey Co., The		21,300		2,070,999
Kroger Co., The		53,300		2,106,949
McCormick & Company Inc.		56,500		3,893,980
Monster Beverage Corp. (a)		35,900		2,432,943
Nu Skin Enterprises Inc. Class A		17,800		2,460,316
PepsiCo Inc.		44,700		3,707,418
Safeway Inc.		88,700		2,888,959
				36,928,748
Energy (6.37%)
Chevron Corp.		31,800		3,972,138
ConocoPhillips		20,400		1,441,260
EOG Resources Inc.		10,400		1,745,536
EQT Corp.		22,600		2,029,028
Exxon Mobil Corp.		38,900		3,936,680
Marathon Petroleum Corp.		32,100		2,944,533
Noble Energy Inc.		31,700		2,159,087
Occidental Petroleum Corp.		42,300		4,022,730
Pioneer Natural Resources Co.		12,600		2,319,282
Schlumberger Ltd.		23,300		2,099,563
				26,669,837

	Shares		Value
Common Stocks (Cont.)
Financials (14.77%)
ACE Ltd.		40,900	$	4,234,377
Aflac Inc.		32,600		2,177,680
American International Group Inc.		80,700		4,119,735
American Tower Corp.		21,100		1,684,202
Arch Capital Group Ltd. (a)		37,000		2,208,530
Bank of America Corp.		326,900		5,089,833
Capital One Financial Corp.		88,400		6,772,324
CIT Group Inc.		74,300		3,873,259
Discover Financial Services		50,700		2,836,665
Hartford Financial Services Group Inc., The		117,300		4,249,779
IntercontinentalExchange Group Inc.		9,900		2,226,708
JPMorgan Chase & Co.		135,500		7,924,040
MetLife Inc.		39,200		2,113,664
Prudential Financial Inc.		25,200		2,323,944
U.S. Bancorp		49,200		1,987,680
Ventas Inc.		33,900		1,941,792
Wells Fargo & Co.		135,100		6,133,540
				61,897,752
Health Care (11.27%)
Abbott Laboratories		103,400		3,963,322
Becton, Dickinson and Co.		36,200		3,999,738
Cigna Corp.		25,800		2,256,984
Cooper Companies Inc., The		17,000		2,105,280
Covidien PLC		56,500		3,847,650
Eli Lilly and Co.		42,700		2,177,700
Express Scripts Holding Co. (a)		57,200		4,017,728
GlaxoSmithKline PLC Sponsored ADR		76,400		4,078,996
HCA Holdings Inc. (a)		58,600		2,795,806
Illumina Inc. (a)		21,900		2,422,578
Johnson & Johnson		84,500		7,739,355
Novartis AG ADR		24,500		1,969,310
Regeneron Pharmaceuticals Inc. (a)		14,100		3,880,884
Waters Corp. (a)		19,600		1,960,000
				47,215,331
Industrials (13.43%)
Boeing Co., The		19,000		2,593,310
Cintas Corp.		37,900		2,258,461
Danaher Corp.		29,400		2,269,680
Delta Air Lines Inc.		112,900		3,101,363
Equifax Inc.		56,300		3,889,767
FedEx Corp.		21,500		3,091,055
General Dynamics Corp.		32,800		3,134,040
General Electric Co.		144,800		4,058,744
Honeywell International Inc.		46,000		4,203,020
MSC Industrial Direct Co. Inc. Class A		24,600		1,989,402
Northrop Grumman Corp.		19,700		2,257,817
Snap-on Inc.		20,400		2,234,208
Southwest Airlines Co.		124,400		2,343,696
Union Pacific Corp.		37,700		6,333,600
United Rentals Inc. (a)		28,000		2,182,600
United Technologies Corp.		38,300		4,358,540

See accompanying notes to financial statements. 87

STATE FARM MUTUAL FUND TRUST EQUITY FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Industrials (Cont.)
W.W. Grainger Inc.		7,500	$	1,915,650
WESCO International Inc. (a)		44,600		4,061,722
				56,276,675
Information Technology (19.00%)
Accenture PLC Class A		50,800		4,176,776
Alliance Data Systems Corp. (a)		16,900		4,443,517
Amdocs Ltd.		100,500		4,144,620
Amphenol Corp. Class A		25,200		2,247,336
Apple Inc.		13,800		7,743,318
Automatic Data Processing Inc.		28,800		2,327,328
Cisco Systems Inc.		133,900		3,006,055
Cognizant Technology Solutions Corp. Class A (a)		23,900		2,413,422
Electronic Arts Inc. (a)		82,800		1,899,432
Fiserv Inc. (a)		44,800		2,645,440
Gartner Inc. (a)		36,000		2,557,800
Google Inc. Class A (a)		2,200		2,465,562
IAC/InterActiveCorp		36,100		2,479,709
International Business Machines Corp.		13,400		2,513,438
Intuit Inc.		34,100		2,602,512
LinkedIn Corp. Class A (a)		12,600		2,732,058
MasterCard Inc. Class A		3,300		2,757,018
Microsoft Corp.		73,000		2,732,390
NetSuite Inc. (a)		24,400		2,513,688
Oracle Corp.		55,800		2,134,908
Paychex Inc.		52,100		2,372,113
QUALCOMM Inc.		56,300		4,180,275
Rackspace Hosting Inc. (a)		33,800		1,322,594
Seagate Technology PLC		58,600		3,290,976
Visa Inc. Class A		10,900		2,427,212
Western Digital Corp.		29,900		2,508,610
Western Union Co.		108,900		1,878,525
Xilinx Inc.		23,300		1,069,936
				79,586,568
Materials (4.65%)
CF Industries Holdings Inc.		6,800		1,584,672
LyondellBasell Industries NV Class A		28,400		2,279,952
Praxair Inc.		19,000		2,470,570
Rock Tenn Co. Class A		26,600		2,793,266
Sealed Air Corp.		65,600		2,233,680
Sherwin-Williams Co., The		22,200		4,073,700
Sigma-Aldrich Corp.		43,000		4,042,430
				19,478,270
Telecommunication Services (2.00%)
AT&T Inc.		106,900		3,758,604
Level 3 Communications Inc. (a)		70,900		2,351,753
Verizon Communications Inc.		46,300		2,275,182
				8,385,539
Utilities (1.41%)
Exelon Corp.		77,900		2,133,681

	Shares		Value
Common Stocks (Cont.)
Utilities (Cont.)
NextEra Energy Inc.		44,200	$	3,784,404
				5,918,085
Total Common Stocks
(cost $309,586,893)				413,654,476
Short-term Investments (0.88%)
JPMorgan U.S. Government Money Market Fund		3,667,660		3,667,660
Total Short-term Investments
(cost $3,667,660)				3,667,660
TOTAL INVESTMENTS (99.61%)
(cost $313,254,553)				417,322,136
OTHER ASSETS, NET OF LIABILITIES (0.39%)				1,644,886
NET ASSETS (100.00%)			$	418,967,022

(a) Non-income producing security.

ADR - American Depositary Receipt

88 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL/MID CAP EQUITY FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Shares		Value
Common Stocks (97.92%)
Consumer Discretionary (14.55%)
AMC Networks Inc. Class A (a)		17,160	$	1,168,769
BorgWarner Inc.		37,770		2,111,721
Brown Shoe Company Inc.		62,300		1,753,122
Brunswick Corp.		34,750		1,600,585
Cumulus Media Inc. Class A (a)		241,200		1,864,476
Dillard’s Inc. Class A		13,830		1,344,414
Discovery Communications Inc. Class A (a)		16,270		1,471,133
Dunkin’ Brands Group Inc.		22,030		1,061,846
Five Below Inc. (a)		12,830		554,256
GNC Holdings Inc. Class A		12,040		703,738
Harman International Industries Inc.		23,040		1,885,824
hhgregg Inc. (a)		76,400		1,067,308
HomeAway Inc. (a)		23,920		977,850
Johnson Controls Inc.		25,070		1,286,091
La-Z-Boy Inc.		48,100		1,491,100
Lennar Corp. Class A		25,880		1,023,813
Lions Gate Entertainment Corp.		32,050		1,014,703
Live Nation Entertainment Inc. (a)		32,170		635,679
Men’s Wearhouse Inc., The		37,900		1,935,932
Meritage Homes Corp. (a)		25,200		1,209,348
Mohawk Industries Inc. (a)		17,740		2,641,486
Norwegian Cruise Line Holdings Ltd. (a)		20,320		720,750
PVH Corp.		6,640		903,173
Ralph Lauren Corp.		6,800		1,200,676
Red Robin Gourmet Burgers Inc. (a)		18,100		1,331,074
Ryland Group Inc., The		34,700		1,506,327
Stein Mart Inc.		72,100		969,745
Tractor Supply Co.		15,790		1,224,988
Ulta Salon, Cosmetics & Fragrance Inc. (a)		4,830		466,192
Under Armour Inc. Class A (a)		7,150		624,195
Urban Outfitters Inc. (a)		16,940		628,474
Wynn Resorts Ltd.		3,370		654,488
				39,033,276
Consumer Staples (5.85%)
Andersons Inc., The		20,900		1,863,653
Chiquita Brands International Inc. (a)		108,100		1,264,770
Church & Dwight Co. Inc.		23,140		1,533,719
Fresh Del Monte Produce Inc.		43,400		1,228,220
Green Mountain Coffee Roasters Inc. (a)		11,600		876,728
Hain Celestial Group Inc., The (a)		13,430		1,219,175
Harbinger Group Inc. (a)		128,300		1,520,355
Monster Beverage Corp. (a)		19,680		1,333,714
Pantry Inc., The (a)		83,600		1,402,808
Spartan Stores Inc.		61,200		1,485,936
Tyson Foods Inc. Class A		26,330		881,002
Weis Markets Inc.		20,600		1,082,736
				15,692,816
Energy (8.03%)
Bristow Group Inc.		18,900		1,418,634
Cloud Peak Energy Inc. (a)		51,300		923,400

	Shares		Value
Common Stocks (Cont.)
Energy (Cont.)
Energy XXI (Bermuda) Ltd.		55,800	$	1,509,948
Exterran Holdings Inc. (a)		45,700		1,562,940
FMC Technologies Inc. (a)		19,120		998,255
Green Plains Renewable Energy Inc.		86,700		1,681,113
Marathon Petroleum Corp.		8,530		782,457
Oasis Petroleum Inc. (a)		58,790		2,761,366
Oceaneering International Inc.		14,520		1,145,338
Pioneer Energy Services Corp. (a)		162,500		1,301,625
Renewable Energy Group Inc. (a)		138,100		1,582,626
SM Energy Co.		31,980		2,657,858
Stone Energy Corp. (a)		55,400		1,916,286
W&T Offshore Inc.		80,400		1,286,400
				21,528,246
Financials (26.64%)
Affiliated Managers Group Inc. (a)		8,860		1,921,557
BankUnited Inc.		19,110		629,101
Berkshire Hills Bancorp Inc.		51,200		1,396,224
Brown & Brown Inc.		32,020		1,005,108
Capitol Federal Financial Inc.		103,600		1,254,596
Cash America International Inc.		34,800		1,332,840
Cathay General Bancorp		57,800		1,544,994
CNO Financial Group Inc.		93,000		1,645,170
Community Bank System Inc.		40,800		1,618,944
DCT Industrial Trust Inc.		152,800		1,089,464
Dime Community Bancshares		62,600		1,059,192
Discover Financial Services		35,110		1,964,404
East West Bancorp Inc.		14,010		489,930
Education Realty Trust Inc.		80,300		708,246
EverBank Financial Corp.		94,300		1,729,462
FBL Financial Group Inc. Class A		21,100		945,069
First American Financial Corp.		49,100		1,384,620
First Interstate BancSystem Inc.		54,800		1,554,676
First Republic Bank		9,970		521,930
Flagstar Bancorp Inc. (a)		83,500		1,638,270
Hartford Financial Services Group Inc., The		16,560		599,969
HCI Group Inc.		28,000		1,498,000
Horace Mann Educators Corp.		48,100		1,517,074
IntercontinentalExchange Group Inc.		7,500		1,686,900
International Bancshares Corp.		53,400		1,409,226
Invesco Ltd.		32,700		1,190,280
iStar Financial Inc. (a)		104,300		1,488,361
Jones Lang LaSalle Inc.		19,100		1,955,649
LaSalle Hotel Properties		40,070		1,236,560
Lazard Ltd. Class A		30,660		1,389,511
Mid-America Apartment Communities Inc.		20,770		1,261,570
Nelnet Inc. Class A		33,300		1,403,262
Northwest Bancshares Inc.		101,200		1,495,736
Ocwen Financial Corp. (a)		32,020		1,775,509
OFG Bancorp		68,300		1,184,322
One Liberty Properties Inc.		49,249		991,382
OneBeacon Insurance Group Ltd. Class A		92,200		1,458,604
PHH Corp. (a)		58,900		1,434,215

See accompanying notes to financial statements. 89

STATE FARM MUTUAL FUND TRUST SMALL/MID CAP EQUITY FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Platinum Underwriters Holdings Ltd.		23,900	$	1,464,592
Raymond James Financial Inc.		35,320		1,843,351
RLI Corp.		12,600		1,226,988
Rockville Financial Inc.		38,800		551,348
Selective Insurance Group Inc.		52,900		1,431,474
Signature Bank (a)		17,200		1,847,624
Stewart Information Services Corp.		22,400		722,848
Susquehanna Bancshares Inc.		94,300		1,210,812
Symetra Financial Corp.		78,600		1,490,256
Trustmark Corp.		46,400		1,245,376
UMB Financial Corp.		22,500		1,446,300
United Bankshares Inc.		46,300		1,456,135
Webster Financial Corp.		49,400		1,540,292
Westamerica Bancorporation		25,900		1,462,314
Whitestone REIT		40,600		542,822
Wintrust Financial Corp.		33,500		1,545,020
				71,437,479
Health Care (8.36%)
Actavis PLC (a)		9,720		1,632,961
Addus HomeCare Corp. (a)		57,400		1,288,630
Albany Molecular Research Inc. (a)		118,000		1,189,440
Alliance HealthCare Services Inc. (a)		31,400		776,836
AMN Healthcare Services Inc. (a)		90,800		1,334,760
BioMarin Pharmaceutical Inc. (a)		9,460		664,754
Catamaran Corp. (a)		22,190		1,053,581
Cooper Companies Inc., The		12,270		1,519,517
Illumina Inc. (a)		7,310		808,632
Incyte Corp. (a)		10,210		516,932
Kindred Healthcare Inc.		108,500		2,141,790
Medivation Inc. (a)		7,870		502,263
PDL BioPharma Inc.		131,300		1,108,172
Perrigo Co. PLC		15,380		2,360,215
ResMed Inc.		16,270		765,992
Salix Pharmaceuticals Ltd. (a)		8,860		796,868
Select Medical Holdings Corp.		156,900		1,821,609
Shire PLC ADR		6,280		887,301
Triple-S Management Corp. Class B (a)		22,600		439,344
Zoetis Inc.		25,190		823,461
				22,433,058
Industrials (16.07%)
A.O. Smith Corp.		23,910		1,289,705
AAR Corp.		55,400		1,551,754
Aceto Corp.		8,053		201,406
Air Lease Corp.		31,800		988,344
AMERCO (a)		9,800		2,330,832
ARC Document Solutions Inc. (a)		58,700		482,514
B/E Aerospace Inc. (a)		28,790		2,505,594
CIRCOR International Inc.		21,100		1,704,458
Consolidated Graphics Inc. (a)		30,300		2,043,432
Fortune Brands Home & Security Inc.		60,130		2,747,941
Genesee & Wyoming Inc. Class A (a)		10,800		1,037,340
Hawaiian Holdings Inc. (a)		162,200		1,561,986
Heartland Express Inc.		66,100		1,296,882
Hexcel Corp. (a)		44,690		1,997,196

	Shares		Value
Common Stocks (Cont.)
Industrials (Cont.)
Huron Consulting Group Inc. (a)		24,800	$	1,555,456
Ingersoll-Rand PLC		17,390		1,071,224
Kansas City Southern		12,970		1,606,075
Kennametal Inc.		13,560		706,069
Kirby Corp. (a)		9,010		894,242
MasTec Inc. (a)		26,460		865,771
Pacer International Inc. (a)		70,400		581,504
Precision Castparts Corp.		5,175		1,393,628
Quanta Services Inc. (a)		60,350		1,904,646
Republic Airways Holdings Inc. (a)		140,200		1,498,738
Rockwell Automation Inc.		13,980		1,651,877
Saia Inc. (a)		42,300		1,355,715
Southwest Airlines Co.		60,380		1,137,559
United Rentals Inc. (a)		33,400		2,603,530
Verisk Analytics Inc. Class A (a)		10,740		705,833
WABCO Holdings Inc. (a)		7,530		703,377
Wabtec Corp.		15,260		1,133,360
				43,107,988
Information Technology (13.40%)
Alliance Data Systems Corp. (a)		3,440		904,478
Amkor Technology Inc. (a)		241,400		1,479,782
Amphenol Corp. Class A		15,540		1,385,857
Avago Technologies Ltd.		21,530		1,138,722
CACI International Inc. Class A (a)		15,000		1,098,300
Cadence Design Systems Inc. (a)		54,680		766,614
CommVault Systems Inc. (a)		10,150		760,032
Concur Technologies Inc. (a)		12,240		1,262,923
EarthLink Inc.		201,700		1,022,619
F5 Networks Inc. (a)		11,570		1,051,250
FleetCor Technologies Inc. (a)		3,320		389,004
Fortinet Inc. (a)		31,580		604,125
Gartner Inc. (a)		19,790		1,406,080
Insight Enterprises Inc. (a)		62,700		1,423,917
LinkedIn Corp. Class A (a)		7,540		1,634,898
Mentor Graphics Corp.		63,100		1,518,817
Microchip Technology Inc.		24,190		1,082,502
NCR Corp. (a)		30,280		1,031,337
NXP Semiconductors NV (a)		46,500		2,135,745
PC Connection Inc.		36,700		911,995
Plexus Corp. (a)		44,000		1,904,760
Sanmina Corp. (a)		89,400		1,492,980
ServiceNow Inc. (a)		16,630		931,446
ShoreTel Inc. (a)		175,600		1,629,568
Sykes Enterprises Inc. (a)		73,500		1,603,035
TeleCommunication Systems Inc. Class A (a)		245,900		570,488
TIBCO Software Inc. (a)		27,720		623,146
Ultimate Software Group Inc., The (a)		6,400		980,608
Unisys Corp. (a)		61,800		2,074,626
Vantiv Inc. Class A (a)		34,680		1,130,915
				35,950,569
Materials (3.29%)
Eagle Materials Inc.		17,410		1,348,056
Ecolab Inc.		6,900		719,463

90 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL/MID CAP EQUITY FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Materials (Cont.)
Kaiser Aluminum Corp.		18,500	$	1,299,440
Methanex Corp.		15,390		911,704
Packaging Corporation of America		20,610		1,304,201
Sensient Technologies Corp.		30,700		1,489,564
Sherwin-Williams Co., The		2,670		489,945
Tredegar Corp.		43,300		1,247,473
				8,809,846
Telecommunication Services (0.54%)
Cincinnati Bell Inc. (a)		407,700		1,451,412
				1,451,412
Utilities (1.19%)
ALLETE Inc.		7,500		374,100
American Water Works Company Inc.		42,310		1,788,021
Black Hills Corp.		19,500		1,023,945
				3,186,066
Total Common Stocks
(cost $212,034,557)				262,630,756

	Shares		Value
Registered Investment Companies (0.47%)
Financials (0.47%)
Fifth Street Finance Corp.		135,700	$	1,255,225
				1,255,225
Total Registered Investment Companies
(cost $1,449,561)				1,255,225
Short-term Investments (1.21%)
JPMorgan U.S. Government Money Market Fund		3,256,182		3,256,182
Total Short-term Investments
(cost $3,256,182)				3,256,182
TOTAL INVESTMENTS (99.60%)
(cost $216,740,300)				267,142,163
OTHER ASSETS, NET OF LIABILITIES (0.40%)				1,079,458
NET ASSETS (100.00%)			$	268,221,621

(a) Non-income producing security.

ADR - American Depositary Receipt

See accompanying notes to financial statements. 91

STATE FARM MUTUAL FUND TRUST INTERNATIONAL EQUITY FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Shares		Value
Common Stocks (96.31%)
Argentina (0.47%)
MercadoLibre Inc.		6,427	$	692,766
Austria (0.44%)
Erste Group Bank AG		18,461		643,301
Belgium (1.13%)
Anheuser-Busch InBev NV		15,508		1,648,292
Brazil (0.96%)
BR Malls Participacoes SA		108,800		786,284
Itau Unibanco Holding SA ADR		44,878		608,994
				1,395,278
Canada (7.88%)
Barrick Gold Corp.		16,344		288,145
Canadian Pacific Railway Ltd.		19,694		2,978,434
Catamaran Corp. (a)		33,335		1,582,746
Dollarama Inc.		9,565		794,284
Imax Corp. (a)		26,736		788,177
Lululemon Athletica Inc. (a)		39,799		2,349,335
Potash Corporation of Saskatchewan Inc.		13,463		443,740
Suncor Energy Inc.		64,299		2,254,173
				11,479,034
China (1.46%)
PetroChina Company Ltd. H		405,000		443,425
Qunar Cayman Islands Ltd. ADR (a)		28,067		744,618
Youku Tudou Inc. ADR (a)		31,091		942,057
				2,130,100
Denmark (1.01%)
Novo Nordisk A/S Class B		8,041		1,473,930
France (9.42%)
Accor SA		16,642		785,279
Air Liquide SA		3,452		488,188
AXA SA		78,693		2,187,892
Compagnie de Saint-Gobain		13,732		755,172
Criteo SA Sponsored ADR (a)		8,984		307,253
Danone		13,201		950,163
Essilor International SA		5,906		627,891
JC Decaux SA		16,908		697,112
Legrand SA		13,485		743,165
L’Oreal SA		6,635		1,165,616
LVMH Moet Hennessy Louis Vuitton SA		1,812		330,541
Pernod Ricard SA		9,821		1,118,825
Remy Cointreau SA		13,101		1,099,225
Schneider Electric SA		17,440		1,521,105
Unibail-Rodamco SE		3,697		947,260
				13,724,687
Germany (8.60%)
Adidas AG		14,440		1,840,303

	Shares		Value
Common Stocks (Cont.)
Germany (Cont.)
Allianz SE Reg.		8,256	$	1,480,485
Bayerische Motoren Werke (BMW) AG		12,627		1,480,353
Daimler AG Registered Shares		14,964		1,294,857
Fresenius Medical Care AG & Co. KGaA		6,738		479,509
Fresenius SE & Co. KGaA		4,097		629,004
Linde AG		7,651		1,600,399
SAP AG		19,050		1,632,963
Wirecard AG		53,124		2,098,568
				12,536,441
Hong Kong (3.59%)
AIA Group Ltd.		435,800		2,186,222
Anton Oilfield Services Group		60,000		36,522
Cheung Kong Holdings Ltd.		59,000		932,064
Hang Lung Properties Ltd.		76,000		241,105
Sands China Ltd.		223,600		1,833,945
				5,229,858
India (0.56%)
Tata Motors Ltd. Sponsored ADR		26,688		821,990
Italy (1.27%)
Intesa Sanpaolo		557,470		1,375,839
Pirelli & C. SpA		27,220		471,077
				1,846,916
Japan (8.45%)
Dentsu Inc.		16,400		669,642
Fanuc Corp.		9,700		1,773,098
Japan Exchange Group Inc.		53,100		1,507,130
Japan Tobacco Inc.		42,136		1,368,390
JIN Co. Ltd.		19,400		819,770
Komatsu Ltd.		15,300		310,475
LIXIL Group Corp.		5,200		142,357
Mitsubishi Estate Company Ltd.		1,000		29,864
Rakuten Inc.		147,200		2,186,125
SMC Corp.		4,600		1,157,535
START TODAY Co. Ltd.		54,300		1,346,285
Toyota Motor Corp.		16,500		1,005,887
				12,316,558
Malaysia (1.09%)
Genting Berhad		253,200		793,110
Genting BHD Warrants (a)		63,116		60,312
Sime Darby Berhad		252,100		732,710
				1,586,132
Netherlands (5.91%)
ASML Holding NV		32,081		3,002,865
Heineken NV		15,659		1,057,285
Royal Dutch Shell PLC Class A		28,648		1,020,943
Sensata Technologies Holding NV (a)		38,678		1,499,546

92 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST INTERNATIONAL EQUITY FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Netherlands (Cont.)
Yandex NV Class A (a)		47,227	$	2,037,845
				8,618,484
Panama (0.77%)
Copa Holdings SA Class A		7,014		1,123,012
Portugal (1.27%)
Jeronimo Martins SGPS SA		95,030		1,858,365
Russia (0.52%)
Magnit OJSC Sponsored GDR (b) (c)		11,358		751,900
Singapore (0.84%)
DBS Group Holdings Ltd.		23,068		312,582
United Overseas Bank Ltd.		53,841		906,203
				1,218,785
South Africa (1.45%)
Naspers Ltd. N Shares		20,183		2,108,748
Spain (2.12%)
Banco Bilbao Vizcaya Argentaria SA		167,824		2,065,873
Banco Santander SA		113,751		1,018,106
				3,083,979
Sweden (2.31%)
Atlas Copco AB Class A		46,800		1,297,362
Investor AB B Shares		22,800		784,477
Sandvik AB		42,484		599,096
Volvo AB B Shares		51,785		679,936
				3,360,871
Switzerland (10.77%)
ABB Ltd. Reg.		37,931		998,397
Compagnie Financiere Richemont SA Reg.		14,654		1,458,747
Holcim Ltd. Reg.		11,954		894,490
Nestle SA Reg.		21,369		1,564,257
Novartis AG		16,622		1,326,704
Roche Holding AG		17,789		4,969,473
Swatch Group AG, The		3,485		2,303,018
Syngenta AG Reg.		2,733		1,088,237
UBS AG Reg.		57,884		1,097,917
				15,701,240
Taiwan (2.21%)
Taiwan Semiconductor Manufacturing Company Ltd. Sponsored ADR		184,680		3,220,819
United Kingdom (14.11%)
Anglo American PLC		23,223		507,621
ARM Holdings PLC		46,486		845,994
BG Group PLC		57,759		1,241,007
British American Tobacco PLC		19,795		1,061,401
CRH PLC		27,803		701,195
Diageo PLC		46,420		1,537,384

	Shares		Value
Common Stocks (Cont.)
United Kingdom (Cont.)
Domino’s Pizza Group PLC		179,513	$	1,524,967
Glencore Xstrata PLC		159,374		825,263
Hargreaves Lansdown PLC		54,089		1,212,760
Lloyds Banking Group PLC (a)		1,296,484		1,693,485
Pearson PLC		40,721		904,262
Reckitt Benckiser Group PLC		7,880		625,433
Rightmove PLC		18,548		841,579
Rolls-Royce Holdings PLC		200,089		4,224,551
Rolls-Royce Holdings PLC C Shares - Entitlement Shares (a) (c)		6,773,704		11,217
Telecity Group PLC		233,708		2,807,748
				20,565,867
United States (7.70%)
Freeport-McMoRan Copper & Gold Inc.		38,316		1,446,046
Gilead Sciences Inc. (a)		19,406		1,458,361
Liberty Global PLC Series C (a)		36,432		3,071,946
MasterCard Inc. Class A		2,648		2,212,298
Schlumberger Ltd.		33,753		3,041,483
				11,230,134
Total Common Stocks
(cost $106,097,303)				140,367,487
Preferred Stocks (0.51%)
Brazil (0.51%)
Banco Bradesco SA Pfd.		60,189		742,142
Total Preferred Stocks
(cost $840,307)				742,142
Short-term Investments (2.32%)
State Street Institutional U.S. Government Money Market Fund		3,372,646		3,372,646
Total Short-term Investments
(cost $3,372,646)				3,372,646
TOTAL INVESTMENTS (99.14%)
(cost $110,310,256)				144,482,275
CASH AND OTHER ASSETS, NET OF LIABILITIES (0.86%)				1,258,288
NET ASSETS (100.00%)			$	145,740,563

(a) Non-income producing security.

(b) These shares may only be resold to qualified institutional buyers in transactions exempt from registration.

(c) In accordance with the Trust’s valuation procedures, State Farm Investment Management Corp. (“SFIMC”) determined the fair value for the security considering the facts and circumstances related to the particular security.

ADR - American Depositary Receipt

GDR - Global Depositary Receipt

See accompanying notes to financial statements. 93

STATE FARM MUTUAL FUND TRUST INTERNATIONAL EQUITY FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

FOREIGN CURRENCY DENOMINATIONS

Currency	Value		%
Euro	$	40,115,821		27.76
United States Dollar		32,805,723		22.71
British Pound		20,565,867		14.23
Swiss Franc		15,701,240		10.87
Japanese Yen		12,316,558		8.52
Canadian Dollar		6,026,891		4.17
Hong Kong Dollar		5,673,283		3.93
Swedish Krona		3,360,871		2.33
South African Rand		2,108,748		1.46
Malaysian Ringgit		1,586,132		1.10
Brazilian Real		1,528,426		1.06
Danish Krone		1,473,930		1.02
Singapore Dollar		1,218,785		0.84
Total Investments	$	144,482,275		100.00	%

SECTOR CLASSIFICATIONS

Sector	Value		%
Consumer Discretionary	$	33,326,269		22.87
Financials		22,759,985		15.62
Industrials		20,547,168		14.10
Information Technology		19,801,176		13.58
Consumer Staples		15,806,536		10.84
Health Care		12,547,618		8.61
Energy		8,862,816		6.08
Materials		7,458,061		5.12
Total Stocks		141,109,629		96.82
Short-term Investments		3,372,646		2.32
Cash and Other Assets, Net of Liabilities		1,258,288		0.86
Net Assets	$	145,740,563		100.00	%

OPEN FORWARD FOREIGN CURRENCY CONTRACTS

Currency	Counterparty	Settlement Date		Foreign amount Purchased (Sold)			U.S. Dollar amount Purchased (Sold)			Unrealized Gain		Unrealized (Loss)
Brazilian Real	State Street Bank and Trust     Company		01/03/2014		134,035		$	(56,889	)	$	—	$	(76	)
Hong Kong Dollar	JPMorgan Chase Bank N.A		01/03/2014		283,946			(36,620	)		—		(2	)
Danish Krone	State Street Bank and Trust     Company		01/03/2014		(2,696,283	)		497,451			234		—
Danish Krone	State Street Bank and Trust     Company		01/02/2014		(1,422,552	)		261,282			—		(1,048	)
Total										$	234	$	(1,126	)

94 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST S&P 500 INDEX FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Shares		Value
Common Stocks (96.53%)
Consumer Discretionary (12.10%)
Amazon.com Inc. (a) (b)		19,039	$	7,592,563
AutoNation Inc. (b)		3,335		165,716
AutoZone Inc. (b)		1,748		835,439
Bed Bath & Beyond Inc. (b)		11,025		885,308
Best Buy Co. Inc.		14,048		560,234
BorgWarner Inc.		11,687		653,420
Cablevision Systems Corp. Class A		11,153		199,973
CarMax Inc. (b)		11,510		541,200
Carnival Corp.		22,537		905,311
CBS Corp. Class B		28,657		1,826,597
Chipotle Mexican Grill Inc. (b)		1,590		847,120
Coach Inc.		14,399		808,216
Comcast Corp. Class A		133,832		6,954,580
Darden Restaurants Inc.		6,708		364,714
Delphi Automotive PLC		14,377		864,489
DIRECTV (b)		25,092		1,733,606
Discovery Communications Inc. Class A (b)		11,587		1,047,697
Dollar General Corp. (b)		15,127		912,461
Dollar Tree Inc. (b)		10,682		602,678
DR Horton Inc.		14,626		326,452
Expedia Inc.		5,285		368,153
Family Dollar Stores Inc.		4,973		323,096
Ford Motor Co.		202,522		3,124,914
Fossil Group Inc. (b)		2,521		302,369
GameStop Corp. Class A		6,018		296,447
Gannett Co. Inc.		11,607		343,335
GAP Inc., The		13,597		531,371
Garmin Ltd.		6,335		292,804
General Motors Co. (b)		58,503		2,391,018
Genuine Parts Co.		7,909		657,950
Goodyear Tire & Rubber Co., The		12,663		302,013
Graham Holdings Co. Class B (b)		224		148,584
H&R Block Inc.		14,099		409,435
Harley-Davidson Inc.		11,351		785,943
Harman International Industries Inc.		3,443		281,810
Hasbro Inc.		5,944		326,979
Home Depot Inc., The		72,320		5,954,829
International Game Technology		12,767		231,849
Interpublic Group of Companies Inc., The		21,360		378,072
Johnson Controls Inc.		35,222		1,806,889
Kohl’s Corp.		10,333		586,398
L Brands Inc.		12,537		775,413
Leggett & Platt Inc.		7,189		222,428
Lennar Corp. Class A		8,545		338,040
Lowe’s Companies Inc.		53,705		2,661,083
Macy’s Inc.		18,919		1,010,275
Marriott International Inc. Class A		11,532		569,220
Mattel Inc.		17,375		826,702
McDonald’s Corp.		51,099		4,958,136
Michael Kors Holdings Ltd. (b)		9,199		746,867
Mohawk Industries Inc. (b)		3,136		466,950
Netflix Inc. (b)		3,047		1,121,814
Newell Rubbermaid Inc.		14,666		475,325
News Corp. Class A (b)		25,636		461,961
NIKE Inc. Class B		38,372		3,017,574

	Shares		Value
Common Stocks (Cont.)
Consumer Discretionary (Cont.)
Nordstrom Inc.		7,340	$	453,612
Omnicom Group Inc.		13,241		984,733
O’Reilly Automotive Inc. (b)		5,510		709,192
PetSmart Inc.		5,349		389,140
Priceline.com Inc. (b)		2,641		3,069,898
PulteGroup Inc.		17,690		360,345
PVH Corp.		4,199		571,148
Ralph Lauren Corp.		3,061		540,481
Ross Stores Inc.		11,155		835,844
Scripps Networks Interactive Class A		5,632		486,661
Staples Inc.		34,003		540,308
Starbucks Corp.		38,684		3,032,439
Starwood Hotels & Resorts Worldwide Inc.		9,832		781,152
Target Corp.		32,492		2,055,769
Tiffany & Co.		5,665		525,599
Time Warner Cable Inc.		14,475		1,961,362
Time Warner Inc.		46,460		3,239,191
TJX Companies Inc.		36,521		2,327,483
TripAdvisor Inc. (b)		5,680		470,474
Twenty-First Century Fox Inc. Class A		100,773		3,545,194
Urban Outfitters Inc. (b)		5,654		209,763
VF Corp.		18,108		1,128,853
Viacom Inc. Class B		20,836		1,819,816
Walt Disney Co., The		83,928		6,412,099
Whirlpool Corp.		4,029		631,989
Wyndham Worldwide Corp.		6,688		492,839
Wynn Resorts Ltd.		4,136		803,253
Yum! Brands Inc.		22,867		1,728,974
				106,231,431
Consumer Staples (9.42%)
Altria Group Inc.		102,709		3,942,999
Archer-Daniels-Midland Co.		33,785		1,466,269
Avon Products Inc.		22,325		384,436
Beam Inc.		8,412		572,521
Brown-Forman Corp. Class B		8,296		626,929
Campbell Soup Co.		9,189		397,700
Clorox Co., The		6,624		614,442
Coca-Cola Co., The		195,034		8,056,855
Coca-Cola Enterprises Inc.		12,395		546,991
Colgate-Palmolive Co.		45,136		2,943,319
ConAgra Foods Inc.		21,729		732,267
Constellation Brands Inc. (b)		8,538		600,904
Costco Wholesale Corp.		22,437		2,670,227
CVS Caremark Corp.		61,125		4,374,716
Dr. Pepper Snapple Group Inc.		10,299		501,767
Estee Lauder Companies Inc. Class A, The		13,163		991,437
General Mills Inc.		32,569		1,625,519
Hershey Co., The		7,698		748,477
Hormel Foods Corp.		6,930		313,028
J.M. Smucker Co., The		5,412		560,791
Kellogg Co.		13,165		803,987
Kimberly-Clark Corp.		19,597		2,047,103
Kraft Foods Group Inc.		30,565		1,648,065

See accompanying notes to financial statements. 95

STATE FARM MUTUAL FUND TRUST S&P 500 INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Consumer Staples (Cont.)
Kroger Co., The		26,680	$	1,054,660
Lorillard Inc.		18,913		958,511
McCormick & Company Inc.		6,795		468,311
Mead Johnson Nutrition Co. Class A		10,358		867,586
Molson Coors Brewing Co. Class B		8,122		456,050
Mondelez International Inc. Class A		90,062		3,179,189
Monster Beverage Corp. (b)		6,981		473,102
PepsiCo Inc.		78,759		6,532,271
Philip Morris International Inc.		82,280		7,169,056
Procter & Gamble Co., The		139,599		11,364,755
Reynolds American Inc.		16,093		804,489
Safeway Inc.		12,687		413,216
Sysco Corp.		29,861		1,077,982
Tyson Foods Inc. Class A		13,941		466,466
Walgreen Co.		44,759		2,570,957
Wal-Mart Stores Inc.		83,087		6,538,116
Whole Foods Market Inc.		19,090		1,103,975
				82,669,441
Energy (9.92%)
Anadarko Petroleum Corp.		25,816		2,047,725
Apache Corp.		20,501		1,761,856
Baker Hughes Inc.		22,714		1,255,176
Cabot Oil & Gas Corp.		21,659		839,503
Cameron International Corp. (b)		12,212		726,980
Chesapeake Energy Corp.		25,893		702,736
Chevron Corp.		98,767		12,336,986
ConocoPhillips		62,890		4,443,178
CONSOL Energy Inc.		11,781		448,149
Denbury Resources Inc. (b)		18,815		309,130
Devon Energy Corp.		19,564		1,210,425
Diamond Offshore Drilling Inc.		3,579		203,717
Ensco PLC Class A		12,025		687,590
EOG Resources Inc.		14,025		2,353,956
EQT Corp.		7,753		696,064
Exxon Mobil Corp.		224,354		22,704,625
FMC Technologies Inc. (b)		12,101		631,793
Halliburton Co.		43,532		2,209,249
Helmerich & Payne Inc.		5,482		460,927
Hess Corp.		14,605		1,212,215
Kinder Morgan Inc.		34,513		1,242,468
Marathon Oil Corp.		35,770		1,262,681
Marathon Petroleum Corp.		15,457		1,417,871
Murphy Oil Corp.		9,045		586,840
Nabors Industries Ltd.		13,367		227,105
National-Oilwell Varco Inc.		22,009		1,750,376
Newfield Exploration Co. (b)		6,985		172,041
Noble Corp. PLC		13,044		488,759
Noble Energy Inc.		18,416		1,254,314
Occidental Petroleum Corp.		41,394		3,936,569
Peabody Energy Corp.		13,920		271,858
Phillips 66		30,787		2,374,601
Pioneer Natural Resources Co.		7,327		1,348,681
QEP Resources Inc.		9,230		282,900
Range Resources Corp.		8,412		709,216
Rowan Companies PLC Class A (b)		6,395		226,127
Schlumberger Ltd.		67,632		6,094,320

	Shares		Value
Common Stocks (Cont.)
Energy (Cont.)
Southwestern Energy Co. (b)		17,967	$	706,642
Spectra Energy Corp.		34,459		1,227,430
Tesoro Corp.		6,817		398,794
Transocean Ltd.		17,441		861,934
Valero Energy Corp.		27,705		1,396,332
Williams Companies Inc., The		35,036		1,351,339
WPX Energy Inc. (b)		10,326		210,442
				87,041,620
Financials (15.62%)
ACE Ltd.		17,459		1,807,530
Aflac Inc.		23,944		1,599,459
Allstate Corp., The		23,355		1,273,782
American Express Co.		47,312		4,292,618
American International Group Inc.		75,611		3,859,942
American Tower Corp.		20,264		1,617,472
Ameriprise Financial Inc.		9,989		1,149,234
Aon PLC		15,458		1,296,772
Apartment Investment and Management Co.		7,523		194,921
Assurant Inc.		3,730		247,560
AvalonBay Communities Inc.		6,262		740,356
Bank of America Corp.		547,769		8,528,763
Bank of New York Mellon Corp.		58,977		2,060,656
BB&T Corp.		36,236		1,352,328
Berkshire Hathaway Inc. Class B (b)		92,443		10,960,042
BlackRock Inc.		6,525		2,064,967
Boston Properties Inc.		7,845		787,403
Capital One Financial Corp.		29,607		2,268,192
CBRE Group Inc. (b)		14,274		375,406
Charles Schwab Corp., The		59,535		1,547,910
Chubb Corp., The		12,837		1,240,439
Cincinnati Financial Corp.		7,583		397,122
Citigroup Inc.		155,762		8,116,758
CME Group Inc.		16,178		1,269,326
Comerica Inc.		9,388		446,306
Discover Financial Services		24,595		1,376,090
E*TRADE Financial Corp. (b)		14,778		290,240
Equity Residential		17,252		894,861
Fifth Third Bancorp		45,327		953,227
Franklin Resources Inc.		20,730		1,196,743
General Growth Properites Inc.		27,596		553,852
Genworth Financial Inc. Class A (b)		25,418		394,742
Goldman Sachs Group Inc., The		21,650		3,837,679
Hartford Financial Services Group Inc., The		22,953		831,587
HCP Inc.		23,429		850,941
Healthcare Realty Trust Inc.		14,855		795,782
Host Hotels & Resorts Inc.		38,885		755,924
Hudson City Bancorp Inc.		24,476		230,809
Huntington Bancshares Inc.		42,713		412,180
IntercontinentalExchange Group Inc.		5,910		1,329,277
Invesco Ltd.		22,797		829,811
JPMorgan Chase & Co.		193,058		11,290,032
KeyCorp		46,030		617,723
Kimco Realty Corp.		21,089		416,508
Legg Mason Inc.		5,445		236,749

96 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST S&P 500 INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Leucadia National Corp.		16,135	$	457,266
Lincoln National Corp.		13,468		695,218
Loews Corp.		15,752		759,876
M&T Bank Corp.		6,695		779,432
Macerich Co., The		7,235		426,069
Marsh & McLennan Companies Inc.		28,178		1,362,688
McGraw Hill Financial Inc.		13,904		1,087,293
MetLife Inc.		57,552		3,103,204
Moody’s Corp.		9,718		762,571
Morgan Stanley		71,144		2,231,076
NASDAQ OMX Group Inc., The		5,944		236,571
Northern Trust Corp.		11,532		713,715
People’s United Financial Inc.		16,189		244,778
Plum Creek Timber Co. Inc.		9,125		424,404
PNC Financial Services Group Inc.		27,296		2,117,624
Principal Financial Group Inc.		14,093		694,926
Progressive Corp., The		28,283		771,277
ProLogis Inc.		25,669		948,470
Prudential Financial Inc.		23,775		2,192,530
Public Storage		7,404		1,114,450
Regions Financial Corp.		70,719		699,411
Simon Property Group Inc.		15,936		2,424,822
SLM Corp.		22,456		590,144
State Street Corp.		22,542		1,654,357
SunTrust Banks Inc.		27,483		1,011,649
T. Rowe Price Group Inc.		13,392		1,121,848
Torchmark Corp.		4,640		362,616
Travelers Companies Inc., The		18,694		1,692,555
U.S. Bancorp		93,788		3,789,035
Unum Group		13,405		470,247
Ventas Inc.		15,096		864,699
Vornado Realty Trust		8,953		794,937
Wells Fargo & Co.		246,177		11,176,436
Weyerhaeuser Co.		29,899		943,911
XL Group PLC		14,515		462,158
Zions Bancorporation		9,499		284,590
				137,056,874
Health Care (12.51%)
Abbott Laboratories		79,401		3,043,440
AbbVie Inc.		81,715		4,315,369
Actavis PLC (b)		8,956		1,504,608
Aetna Inc.		18,870		1,294,293
Agilent Technologies Inc.		16,941		968,856
Alexion Pharmaceuticals Inc. (b)		10,068		1,339,648
Allergan Inc.		15,281		1,697,413
AmerisourceBergen Corp.		11,810		830,361
Amgen Inc.		38,728		4,421,188
Baxter International Inc.		27,867		1,938,150
Becton, Dickinson and Co.		9,950		1,099,376
Biogen Idec Inc. (b)		12,131		3,393,647
Boston Scientific Corp. (b)		68,550		823,971
Bristol-Myers Squibb Co.		84,557		4,494,205
Cardinal Health Inc.		17,553		1,172,716
CareFusion Corp. (b)		10,847		431,928
Celgene Corp. (b)		21,173		3,577,390
Cerner Corp. (b)		15,191		846,746

	Shares		Value
Common Stocks (Cont.)
Health Care (Cont.)
Cigna Corp.		14,193	$	1,241,604
Covidien PLC		23,605		1,607,500
CR Bard Inc.		3,998		535,492
DaVita HealthCare Partners Inc. (b)		9,084		575,653
DENTSPLY International Inc.		7,325		355,116
Edwards Lifesciences Corp. (b)		5,614		369,177
Eli Lilly and Co.		50,913		2,596,563
Express Scripts Holding Co. (b)		41,380		2,906,531
Forest Laboratories Inc. (b)		12,161		730,025
Gilead Sciences Inc. (b)		78,728		5,916,409
Hospira Inc. (b)		8,528		352,036
Humana Inc.		8,004		826,173
Intuitive Surgical Inc. (b)		1,955		750,876
Johnson & Johnson		144,899		13,271,299
Laboratory Corp. of America Holdings (b)		4,486		409,886
Life Technologies Corp. (b)		8,889		673,786
McKesson Corp.		11,802		1,904,843
Medtronic Inc.		51,263		2,941,984
Merck & Co. Inc.		150,058		7,510,403
Mylan Inc. (b)		19,656		853,070
Patterson Companies Inc.		4,287		176,624
PerkinElmer Inc.		5,767		237,773
Perrigo Co. PLC		6,847		1,050,741
Pfizer Inc.		332,843		10,194,981
Quest Diagnostics Inc.		7,464		399,623
Regeneron Pharmaceuticals Inc. (b)		4,036		1,110,869
St. Jude Medical Inc.		14,993		928,816
Stryker Corp.		15,184		1,140,926
Tenet Healthcare Corp. (b)		5,089		214,349
Thermo Fisher Scientific Inc.		18,560		2,066,656
UnitedHealth Group Inc.		51,701		3,893,085
Varian Medical Systems Inc. (b)		5,426		421,546
Vertex Pharmaceuticals Inc. (b)		11,986		890,560
Waters Corp. (b)		4,387		438,700
WellPoint Inc.		15,169		1,401,464
Zimmer Holdings Inc.		8,785		818,674
Zoetis Inc.		25,741		841,473
				109,748,591
Industrials (10.56%)
3M Co.		32,847		4,606,792
ADT Corp., The		10,296		416,679
Allegion PLC (b)		4,529		200,137
AMETEK Inc.		12,573		662,220
Boeing Co., The		35,503		4,845,804
Caterpillar Inc.		32,679		2,967,580
CH Robinson Worldwide Inc.		7,783		454,060
Cintas Corp.		5,167		307,902
CSX Corp.		52,050		1,497,478
Cummins Inc.		8,964		1,263,655
Danaher Corp.		30,796		2,377,451
Deere & Co.		19,653		1,794,908
Delta Air Lines Inc.		43,929		1,206,730
Dover Corp.		8,731		842,891
Dun & Bradstreet Corp.		1,953		239,731
Eaton Corp. PLC		24,397		1,857,100

See accompanying notes to financial statements. 97

STATE FARM MUTUAL FUND TRUST S&P 500 INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Industrials (Cont.)
Emerson Electric Co.		36,150	$	2,537,007
Equifax Inc.		6,244		431,398
Expeditors International of Washington Inc.		10,508		464,979
Fastenal Co.		14,061		668,038
FedEx Corp.		15,298		2,199,393
Flowserve Corp.		7,159		564,344
Fluor Corp.		8,393		673,874
General Dynamics Corp.		17,188		1,642,313
General Electric Co.		519,594		14,564,220
Honeywell International Inc.		40,296		3,681,846
Illinois Tool Works Inc.		20,967		1,762,905
Ingersoll-Rand PLC		13,755		847,308
Iron Mountain Inc.		8,756		265,745
Jacobs Engineering Group Inc. (b)		6,768		426,316
Joy Global Inc.		5,471		319,999
Kansas City Southern		5,674		702,611
L-3 Communications Holdings Inc.		4,549		486,106
Lockheed Martin Corp.		13,816		2,053,887
Masco Corp.		18,376		418,422
Nielsen Holdings N.V.		13,004		596,754
Norfolk Southern Corp.		15,862		1,472,469
Northrop Grumman Corp.		11,398		1,306,325
PACCAR Inc.		18,223		1,078,255
Pall Corp.		5,687		485,385
Parker Hannifin Corp.		7,680		987,955
Pentair Ltd. Reg.		10,253		796,351
Pitney Bowes Inc.		10,416		242,693
Precision Castparts Corp.		7,459		2,008,709
Quanta Services Inc. (b)		11,176		352,715
Raytheon Co.		16,404		1,487,843
Republic Services Inc.		13,827		459,056
Robert Half International Inc.		7,148		300,145
Rockwell Automation Inc.		7,139		843,544
Rockwell Collins Inc.		6,950		513,744
Roper Industries Inc.		5,106		708,100
Ryder System Inc.		2,694		198,763
Snap-on Inc.		2,995		328,012
Southwest Airlines Co.		35,767		673,850
Stanley Black & Decker Inc.		7,968		642,938
Stericycle Inc. (b)		4,378		508,592
Textron Inc.		14,441		530,851
Tyco International Ltd.		23,932		982,169
Union Pacific Corp.		23,652		3,973,536
United Parcel Service Inc. Class B		36,709		3,857,382
United Technologies Corp.		43,352		4,933,458
W.W. Grainger Inc.		3,164		808,149
Waste Management Inc.		22,444		1,007,062
Xylem Inc.		9,539		330,049
				92,666,683
Information Technology (17.98%)
Accenture PLC Class A		32,646		2,684,154
Adobe Systems Inc. (b)		23,871		1,429,395
Akamai Technologies Inc. (b)		9,172		432,735
Alliance Data Systems Corp. (b)		2,504		658,377
Altera Corp.		16,447		535,021

	Shares		Value
Common Stocks (Cont.)
Information Technology (Cont.)
Amphenol Corp. Class A		8,126	$	724,677
Analog Devices Inc.		15,995		814,625
Apple Inc.		46,208		25,927,771
Applied Materials Inc.		61,924		1,095,436
Autodesk Inc. (b)		11,594		583,526
Automatic Data Processing Inc.		24,721		1,997,704
Broadcom Corp. Class A		27,703		821,394
CA Inc.		16,678		561,215
Cisco Systems Inc.		274,577		6,164,254
Citrix Systems Inc. (b)		9,560		604,670
Cognizant Technology Solutions Corp. Class A (b)		15,515		1,566,705
Computer Sciences Corp.		7,508		419,547
Corning Inc.		74,309		1,324,186
eBay Inc. (b)		59,834		3,284,288
Electronic Arts Inc. (b)		16,005		367,155
EMC Corp.		105,674		2,657,701
F5 Networks Inc. (b)		3,971		360,805
Facebook Inc. Class A (b)		84,477		4,617,513
Fidelity National Information Services Inc.		14,940		801,979
First Solar Inc. (b)		3,673		200,693
Fiserv Inc. (b)		13,247		782,235
FLIR Systems Inc.		7,314		220,151
Google Inc. Class A (b)		14,414		16,153,914
Harris Corp.		5,505		384,304
Hewlett-Packard Co.		98,690		2,761,346
Intel Corp.		255,288		6,627,276
International Business Machines Corp.		52,420		9,832,419
Intuit Inc.		14,626		1,116,256
Jabil Circuit Inc.		9,494		165,575
Juniper Networks Inc. (b)		25,854		583,525
KLA-Tencor Corp.		8,532		549,973
Lam Research Corp. (b)		8,303		452,098
Linear Technology Corp.		12,005		546,828
LSI Corp.		27,732		305,607
MasterCard Inc. Class A		5,317		4,442,141
Microchip Technology Inc.		10,158		454,570
Micron Technology Inc. (b)		54,037		1,175,845
Microsoft Corp.		390,111		14,601,855
Motorola Solutions Inc.		11,821		797,918
NetApp Inc.		17,509		720,320
NVIDIA Corp.		29,787		477,188
Oracle Corp.		180,218		6,895,141
Paychex Inc.		16,631		757,209
QUALCOMM Inc.		86,762		6,442,078
Red Hat Inc. (b)		9,746		546,166
Salesforce.com Inc. (b)		28,498		1,572,805
SanDisk Corp.		11,597		818,052
Seagate Technology PLC		16,781		942,421
Symantec Corp.		35,735		842,631
TE Connectivity Ltd.		21,071		1,161,223
Teradata Corp. (b)		8,397		381,980
Texas Instruments Inc.		56,208		2,468,093
Total System Services Inc.		8,581		285,576
VeriSign Inc. (b)		6,612		395,265
Visa Inc. Class A		26,153		5,823,750

98 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST S&P 500 INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Information Technology (Cont.)
Western Digital Corp.		10,799	$	906,036
Western Union Co.		28,414		490,142
Xerox Corp.		59,210		720,586
Xilinx Inc.		13,822		634,706
Yahoo! Inc. (b)		48,445		1,959,116
				157,829,846
Materials (3.38%)
Air Products & Chemicals Inc.		10,854		1,213,260
Airgas Inc.		3,406		380,961
Alcoa Inc.		55,062		585,309
Allegheny Technologies Inc.		5,560		198,103
Avery Dennison Corp.		4,947		248,290
Ball Corp.		7,470		385,900
Bemis Company Inc.		5,298		217,006
CF Industries Holdings Inc.		2,949		687,235
Cliffs Natural Resources Inc.		7,883		206,613
Dow Chemical Co., The		62,304		2,766,298
E.I. du Pont de Nemours & Co.		47,540		3,088,674
Eastman Chemical Co.		7,872		635,270
Ecolab Inc.		13,915		1,450,917
FMC Corp.		6,841		516,222
Freeport-McMoRan Copper & Gold Inc.		53,288		2,011,089
International Flavors & Fragrances Inc.		4,208		361,804
International Paper Co.		22,778		1,116,805
LyondellBasell Industries NV Class A		22,432		1,800,841
MeadWestvaco Corp.		9,140		337,540
Monsanto Co.		27,003		3,147,200
Mosaic Co., The		17,538		829,021
Newmont Mining Corp.		25,621		590,052
Nucor Corp.		16,381		874,418
Owens-Illinois Inc. (b)		8,461		302,735
PPG Industries Inc.		7,293		1,383,190
Praxair Inc.		15,116		1,965,533
Sealed Air Corp.		10,085		343,394
Sherwin-Williams Co., The		4,423		811,620
Sigma-Aldrich Corp.		6,134		576,657
United States Steel Corp.		7,487		220,866
Vulcan Materials Co.		6,691		397,581
				29,650,404
Telecommunication Services (2.22%)
AT&T Inc.		270,544		9,512,327
CenturyLink Inc.		30,347		966,552
Crown Castle International Corp. (b)		17,162		1,260,206
Frontier Communications Corp.		51,466		239,317
Verizon Communications Inc.		146,967		7,221,958
Windstream Holdings Inc.		30,518		243,534
				19,443,894
Utilities (2.82%)
AES Corp., The		33,750		489,712
AGL Resources Inc.		6,105		288,339
Ameren Corp.		12,491		451,675

	Shares		Value
Common Stocks (Cont.)
Utilities (Cont.)
American Electric Power Company Inc.		25,060	$	1,171,304
CenterPoint Energy Inc.		22,066		511,490
CMS Energy Corp.		13,687		366,401
Consolidated Edison Inc.		15,078		833,512
Dominion Resources Inc.		29,809		1,928,344
DTE Energy Co.		9,086		603,220
Duke Energy Corp.		36,254		2,501,889
Edison International		16,773		776,590
Entergy Corp.		9,179		580,755
Exelon Corp.		43,916		1,202,859
FirstEnergy Corp.		21,530		710,059
Integrys Energy Group Inc.		4,097		222,918
NextEra Energy Inc.		22,123		1,894,171
NiSource Inc.		16,092		529,105
Northeast Utilities		16,204		686,888
NRG Energy Inc.		16,625		477,470
ONEOK Inc.		10,616		660,103
Pepco Holdings Inc.		12,824		245,323
PG&E Corp.		23,084		929,824
Pinnacle West Capital Corp.		5,663		299,686
PPL Corp.		32,350		973,412
Public Service Enterprise Group Inc.		26,042		834,386
SCANA Corp.		7,207		338,225
Sempra Energy		11,694		1,049,653
Southern Co.		45,293		1,861,995
TECO Energy Inc.		10,333		178,141
Wisconsin Energy Corp.		11,598		479,461
Xcel Energy Inc.		25,616		715,711
				24,792,621
Total Common Stocks
(cost $482,739,629)				847,131,405

See accompanying notes to financial statements. 99

STATE FARM MUTUAL FUND TRUST S&P 500 INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Short-term Investments (3.36%)
State Street Institutional U.S. Government Money Market Fund		29,503,657	$	29,503,657
Total Short-term Investments
(cost $ 29,503,657)				29,503,657
TOTAL INVESTMENTS (99.89%)
(cost $ 512,243,286)				876,635,062
OTHER ASSETS, NET OF LIABILITIES (0.11%)				1,002,885
NET ASSETS (100.00%)			$	877,637,947

(a) At December 31, 2013, this security has been pledged to cover, in whole or in part, initial margin requirements for open futures contracts.

(b) Non-income producing security.

OPEN FUTURES CONTRACTS

Description	Contracts Purchased	Expiration	Notional Value		Market Value		Unrealized Gain (Loss)
S&P 500 Mini Index	331	March 2014	$	29,769,208	$	30,470,205	$	700,997

100 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Shares		Value
Common Stocks (97.76%)
Consumer Discretionary (13.61%)
1-800-FLOWERS.COM Inc. (a)		5,915	$	32,000
Aeropostale Inc. (a)		19,618		178,328
AFC Enterprises Inc. (a)		6,041		232,578
AH Belo Corp. Class A		4,700		35,109
AMC Entertainment Holdings Inc. Class A (a)		518		10,645
American Apparel Inc. (a)		14,400		17,712
American Axle & Manufacturing Holdings Inc. (a)		17,030		348,264
American Public Education Inc. (a)		4,555		198,006
America’s Car-Mart Inc. (a)		2,000		84,460
Ann Inc. (a)		12,032		439,890
Arctic Cat Inc.		3,269		186,268
Asbury Automotive Group Inc. (a)		7,952		427,340
Ascent Capital Group LLC Class A (a)		3,600		308,016
Barnes & Noble Inc. (a)		10,037		150,053
Bassett Furniture Industries Inc.		2,800		42,784
Beasley Broadcast Group Inc. Class A		1,200		10,476
Beazer Homes USA Inc. (a)		6,602		161,221
bebe stores inc.		9,200		48,944
Big 5 Sporting Goods Corp.		4,219		83,621
Biglari Holdings Inc. (a)		362		183,404
BJ’s Restaurants Inc. (a)		6,249		194,094
Black Diamond Inc. (a)		6,139		81,833
Bloomin’ Brands Inc. (a)		14,141		339,525
Blue Nile Inc. (a)		3,256		153,325
Blyth Inc.		2,072		22,543
Bob Evans Farms Inc.		7,145		361,466
Body Central Corp. (a)		4,070		16,036
Bon-Ton Stores Inc., The		3,408		55,482
Boyd Gaming Corp. (a)		18,117		203,997
Bravo Brio Restaurant Group Inc. (a)		4,815		78,340
Bridgepoint Education Inc. (a)		3,563		63,101
Bright Horizons Family Solutions Inc. (a)		2,963		108,861
Brown Shoe Company Inc.		11,005		309,681
Brunswick Corp.		23,100		1,063,986
Buckle Inc., The		7,049		370,495
Buffalo Wild Wings Inc. (a)		4,796		705,971
Burlington Stores Inc. (a)		3,955		126,560
Caesars Entertainment Corp. (a)		10,200		219,708
Callaway Golf Co.		17,714		149,329
Capella Education Co.		2,729		181,315
Career Education Corp. (a)		13,300		75,810
Carmike Cinemas Inc. (a)		5,800		161,472
Carriage Services Inc.		4,000		78,120
Carrols Restaurant Group Inc. (a)		5,900		38,999
Cato Corp. Class A		6,944		220,819
Cavco Industries Inc. (a)		1,742		119,675
CEC Entertainment Inc.		4,606		203,954
Central European Media Enterprises Ltd. Class A (a)		19,051		73,156
Cheesecake Factory Inc., The		13,489		651,114
Children’s Place Retail Stores Inc., The (a)		5,956		339,313
Christopher & Banks Corp. (a)		9,000		76,860
Churchill Downs Inc.		3,545		317,809

	Shares		Value
Common Stocks (Cont.)
Consumer Discretionary (Cont.)
Chuy’s Holdings Inc. (a)		4,292	$	154,598
Citi Trends Inc. (a)		3,800		64,600
ClubCorp Holdings Inc.		5,341		94,749
Columbia Sportswear Co.		3,248		255,780
Conn’s Inc. (a)		5,692		448,473
Container Store Group Inc., The (a)		3,726		173,669
Cooper Tire & Rubber Co.		16,350		393,054
Core-Mark Holding Co. Inc.		2,928		222,323
Corinthian Colleges Inc. (a)		19,116		34,026
Costa Inc. (a)		2,338		50,805
Cracker Barrel Old Country Store Inc.		4,982		548,369
Crocs Inc. (a)		22,600		359,792
Crown Media Holdings Inc. (a)		10,362		36,578
CSS Industries Inc.		2,118		60,744
Culp Inc.		2,200		44,990
Cumulus Media Inc. Class A (a)		21,889		169,202
Daily Journal Corp. (a)		200		36,998
Dana Holding Corp.		37,084		727,588
Del Frisco’s Restaurant Group Inc. (a)		2,663		62,767
Denny’s Corp. (a)		23,453		168,627
Destination Maternity Corp.		3,400		101,592
Destination XL Group Inc. (a)		10,474		68,814
Dex Media Inc. (a)		4,300		29,154
Diamond Resorts International Inc. (a)		4,425		81,686
Digital Generation Inc. (a)		6,497		82,837
DineEquity Inc.		4,175		348,821
Diversified Restaurant Holdings Inc. (a)		2,700		12,879
Dorman Products Inc. (a)		6,400		358,848
Drew Industries Inc.		5,919		303,053
E.W. Scripps Co Class A (a)		8,090		175,715
Education Management Corp. (a)		6,200		62,558
Einstein Noah Restaurant Group Inc.		1,400		20,300
Entercom Communications Corp. Class A (a)		5,869		61,683
Entravision Communications Corp. Class A		13,745		83,707
Ethan Allen Interiors Inc.		6,522		198,399
EveryWare Global Inc. (a)		2,500		20,700
Express Inc. (a)		21,562		402,563
Federal-Mogul Corp. (a)		5,200		102,336
Fiesta Restaurant Group Inc. (a)		5,700		297,768
Fifth & Pacific Companies Inc. (a)		30,652		983,010
Finish Line Inc. Class A, The		12,606		355,111
Five Below Inc. (a)		8,390		362,448
Flexsteel Industries Inc.		1,500		46,095
Fox Factory Holding Corp. (a)		2,447		43,116
Francesca’s Holdings Corp. (a)		10,960		201,774
Fred’s Inc. Class A		9,440		174,829
FTD Companies Inc. (a)		4,651		151,530
Fuel Systems Solutions Inc. (a)		3,754		52,068
Genesco Inc. (a)		6,132		448,004
Gentherm Inc. (a)		8,700		233,247
G-III Apparel Group Ltd. (a)		4,271		315,157
Global Sources Ltd. (a)		4,764		38,731
Gordmans Stores Inc.		2,200		16,874
Grand Canyon Education Inc. (a)		11,533		502,839

See accompanying notes to financial statements. 101

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Consumer Discretionary (Cont.)
Gray Television Inc. (a)		12,500	$	186,000
Group 1 Automotive Inc.		5,549		394,090
Harte-Hanks Inc.		10,900		85,238
Haverty Furniture Companies Inc.		5,035		157,596
Helen of Troy Ltd. (a)		8,179		404,942
Hemisphere Media Group Inc. (a)		2,100		24,927
hhgregg Inc. (a)		3,114		43,503
Hibbett Sports Inc. (a)		6,612		444,393
Hillenbrand Inc.		14,053		413,439
Hooker Furniture Corp.		2,700		45,036
Houghton Mifflin Harcourt Co. (a)		5,400		91,584
Hovnanian Enterprises Inc. Class A (a)		29,924		198,097
HSN Inc.		8,600		535,780
Iconix Brand Group Inc. (a)		13,183		523,365
Ignite Restaurant Group Inc. (a)		1,700		21,250
International Speedway Corp. Class A		7,285		258,545
Interval Leisure Group Inc.		10,100		312,090
iRobot Corp. (a)		7,100		246,867
Isle of Capri Casinos Inc. (a)		5,109		45,981
ITT Educational Services Inc. (a)		6,100		204,838
Jack in the Box Inc. (a)		11,229		561,675
JAKKS Pacific Inc.		4,527		30,467
Jamba Inc. (a)		4,295		53,387
Johnson Outdoors Inc. Class A		1,230		33,148
Jones Group Inc., The		20,557		307,533
Jos. A. Bank Clothiers Inc. (a)		7,055		386,120
Journal Communications Inc. Class A (a)		11,342		105,594
JTH Holding Inc. Class A (a)		1,200		29,160
K12 Inc. (a)		6,773		147,313
KB Home		21,315		389,638
Kirkland’s Inc. (a)		3,700		87,579
Krispy Kreme Doughnuts Inc. (a)		16,706		322,259
La-Z-Boy Inc.		13,422		416,082
Leapfrog Enterprises Inc. (a)		15,820		125,611
LGI Homes Inc. (a)		2,494		44,368
Libbey Inc. (a)		5,323		111,783
Life Time Fitness Inc. (a)		11,078		520,666
LifeLock Inc. (a)		15,800		259,278
Lifetime Brands Inc.		2,381		37,453
Lincoln Educational Services Corp.		5,600		27,888
Lithia Motors Inc. Class A		5,639		391,459
Live Nation Entertainment Inc. (a)		36,053		712,407
Loral Space & Communications Inc. (a)		3,300		267,234
Luby’s Inc. (a)		4,712		36,377
Lumber Liquidators Holdings Inc. (a)		6,974		717,555
M.D.C. Holdings Inc.		9,947		320,691
M/I Homes Inc. (a)		6,065		154,354
Mac-Gray Corp.		3,300		70,059
Marcus Corp., The		5,037		67,697
Marine Products Corp.		2,692		27,055
MarineMax Inc. (a)		6,231		100,194
Marriott Vacations Worldwide Corp. (a)		7,400		390,424
Martha Stewart Living Omnimedia Inc. Class A (a)		6,778		28,468
Matthews International Corp.		7,208		307,133
Mattress Firm Holding Corp. (a)		3,400		146,336

	Shares		Value
Common Stocks (Cont.)
Consumer Discretionary (Cont.)
McClatchy Co. Class A, The (a)		14,927	$	50,752
MDC Partners Inc. Class A		9,724		248,059
Media General Inc. Class A (a)		4,900		110,740
Men’s Wearhouse Inc., The		12,158		621,031
Meredith Corp.		9,088		470,758
Meritage Homes Corp. (a)		9,200		441,508
Modine Manufacturing Co. (a)		12,320		157,942
Monarch Casino & Resort Inc. (a)		1,966		39,477
Monro Muffler Brake Inc.		8,002		450,993
Morgans Hotel Group Co. (a)		6,586		53,544
Movado Group Inc.		4,539		199,761
Multimedia Games Holding Company Inc. (a)		7,300		228,928
NACCO Industries Inc. Class A		1,148		71,394
Nathan’s Famous Inc. (a)		700		35,287
National CineMedia Inc.		15,472		308,821
Nautilus Inc. (a)		7,700		64,911
New York & Co. Inc. (a)		7,819		34,169
New York Times Co. Class A, The		32,752		519,774
Nexstar Broadcasting Group Inc. Class A		7,484		417,083
Noodles & Company (a)		1,529		54,922
NutriSystem Inc.		7,407		121,771
Office Depot Inc. (a)		121,512		642,798
Orbitz Worldwide Inc. (a)		6,215		44,624
Orient-Express Hotels Ltd. Class A (a)		24,403		368,729
Outerwall Inc. (a)		7,199		484,277
Overstock.com Inc. (a)		2,899		89,260
Oxford Industries Inc.		3,447		278,069
Pacific Sunwear of California Inc. (a)		11,400		38,076
Papa John’s International Inc.		8,098		367,649
Penske Automotive Group Inc.		10,829		510,696
Pep Boys-Manny, Moe & Jack, The (a)		13,227		160,576
Perry Ellis International Inc. (a)		3,140		49,581
PetMed Express Inc.		5,300		88,139
Pier 1 Imports Inc.		24,011		554,174
Pinnacle Entertainment Inc. (a)		14,748		383,301
Pool Corp.		11,696		680,005
Potbelly Corp. (a)		2,250		54,630
Quiksilver Inc. (a)		33,800		296,426
R.G. Barry Corp.		2,681		51,743
RadioShack Corp. (a)		25,300		65,780
ReachLocal Inc. (a)		2,409		30,618
Reading International Inc. Class A (a)		4,300		32,207
Red Robin Gourmet Burgers Inc. (a)		3,574		262,832
Regis Corp.		11,875		172,306
Remy International Inc.		3,500		81,620
Rent-A-Center Inc.		13,528		451,024
Rentrak Corp. (a)		2,800		106,092
Restoration Hardware Holdings Inc. (a)		4,500		302,850
RetailMeNot Inc. (a)		2,332		67,138
Ruby Tuesday Inc. (a)		16,211		112,342
Ruth’s Hospitality Group Inc.		9,085		129,098
Ryland Group Inc., The		11,789		511,760
Saga Communications Inc. Class A		1,196		60,159
Salem Communications Corp. Class A		2,600		22,620
Scholastic Corp.		6,791		230,962

102 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Consumer Discretionary (Cont.)
Scientific Games Corp. Class A (a)		11,946	$	202,246
Sears Hometown and Outlet Stores Inc. (a)		2,100		53,550
Select Comfort Corp. (a)		14,353		302,705
SFX Entertainment Inc. (a)		5,127		61,524
Shiloh Industries Inc. (a)		1,370		26,715
Shoe Carnival Inc.		4,025		116,765
Shutterfly Inc. (a)		9,700		494,021
Sinclair Broadcast Group Inc. Class A		17,313		618,593
Skechers U.S.A. Inc. Class A (a)		9,849		326,297
Skullcandy Inc. (a)		4,066		29,316
Smith & Wesson Holding Corp. (a)		14,620		197,224
Sonic Automotive Inc.		9,997		244,727
Sonic Corp. (a)		14,246		287,627
Sotheby’s		17,497		930,840
Spartan Motors Inc.		8,300		55,610
Speedway Motorsports Inc.		2,854		56,652
Stage Stores Inc.		8,207		182,360
Standard Motor Products Inc.		5,000		184,000
Standard Pacific Corp. (a)		38,100		344,805
Stein Mart Inc.		7,123		95,804
Steiner Leisure Ltd. (a)		3,652		179,642
Steven Madden Ltd. (a)		15,190		555,802
Stoneridge Inc. (a)		7,600		96,900
Strayer Education Inc. (a)		2,720		93,758
Sturm, Ruger & Company Inc.		4,900		358,141
Superior Industries International Inc.		5,941		122,563
Systemax Inc. (a)		2,500		28,125
Tenneco Inc. (a)		15,513		877,570
Texas Roadhouse Inc. Class A		15,904		442,131
Tile Shop Holdings Inc., The (a)		4,600		83,122
Tilly’s Inc. Class A (a)		2,300		26,335
Tower International Inc. (a)		1,495		31,993
Town Sports International Holdings Inc.		5,911		87,246
Trans World Entertainment Corp. (a)		2,600		11,492
Tri Pointe Homes Inc. (a)		3,954		78,803
Tuesday Morning Corp. (a)		10,689		170,596
Tumi Holdings Inc. (a)		12,238		275,967
UCP Inc. Class A (a)		1,924		28,167
Unifi Inc. (a)		3,900		106,236
Universal Electronics Inc. (a)		3,712		141,464
Universal Technical Institute Inc.		5,681		79,023
Vail Resorts Inc.		9,126		686,549
Valassis Communications Inc.		9,990		342,158
ValueVision Media Inc. Class A (a)		9,700		67,803
Vera Bradley Inc. (a)		5,547		133,350
Vince Holding Corp. (a)		2,927		89,771
Vitacost.com Inc. (a)		5,600		32,424
Vitamin Shoppe Inc. (a)		7,823		406,874
VOXX International Corp. (a)		4,804		80,227
WCI Communities Inc. (a)		1,693		32,319
West Marine Inc. (a)		4,800		68,304
Wet Seal Inc. Class A (a)		22,624		61,764
Weyco Group Inc.		1,700		50,031
William Lyon Homes Class A (a)		3,400		75,276

	Shares		Value
Common Stocks (Cont.)
Consumer Discretionary (Cont.)
Winmark Corp.		575	$	53,256
Winnebago Industries Inc. (a)		7,319		200,907
Wolverine World Wide Inc.		25,630		870,395
World Wrestling Entertainment Inc.		7,095		117,635
Zagg Inc. (a)		8,016		34,870
Zale Corp. (a)		8,100		127,737
Zumiez Inc. (a)		5,266		136,916
				58,398,661
Consumer Staples (3.76%)
Alico Inc.		685		26,626
Alliance One International Inc. (a)		22,744		69,369
Andersons Inc., The		4,740		422,666
Annie’s Inc. (a)		3,400		146,336
Arden Group Inc. Class A		300		37,953
B&G Foods Inc. Class A		13,549		459,447
Boston Beer Co. Inc. (a)		2,080		502,923
Boulder Brands Inc. (a)		15,300		242,658
Calavo Growers Inc.		3,100		93,806
Cal-Maine Foods Inc.		3,700		222,851
Casey’s General Stores Inc.		9,800		688,450
Central Garden & Pet Co. (a)		10,673		72,043
Chefs’ Warehouse Inc., The (a)		4,200		122,472
Chiquita Brands International Inc. (a)		12,305		143,968
Coca-Cola Bottling Co. Consolidated		1,155		84,534
Craft Brew Alliance Inc. (a)		2,569		42,183
Darling International Inc. (a)		40,437		844,325
Diamond Foods Inc. (a)		5,800		149,872
Elizabeth Arden Inc. (a)		6,403		226,986
Fairway Group Holdings Corp. (a)		3,894		70,559
Farmer Brothers Co. (a)		1,731		40,263
Female Health Co., The		5,300		45,050
Fresh Del Monte Produce Inc.		9,800		277,340
Griffin Land & Nurseries Inc.		800		26,704
Hain Celestial Group Inc., The (a)		9,754		885,468
Harbinger Group Inc. (a)		8,127		96,305
Harris Teeter Supermarkets Inc.		12,490		616,382
Ingles Markets Inc.		2,905		78,726
Inter Parfums Inc.		4,216		150,975
Inventure Foods Inc. (a)		3,300		43,758
J&J Snack Foods Corp.		3,842		340,363
John B. Sanfilippo & Son Inc.		2,000		49,360
Lancaster Colony Corp.		4,714		415,539
Lifevantage Corp. (a)		28,000		46,200
Lifeway Foods Inc.		1,100		17,578
Limoneira Co.		2,567		68,257
Medifast Inc. (a)		3,531		92,265
National Beverage Corp. (a)		3,080		62,093
Natural Grocers by Vitamin Cottage Inc. (a)		2,202		93,475
Nature’s Sunshine Products Inc.		2,767		47,924
Nutraceutical International Corp. (a)		2,000		53,560
Oil-Dri Corporation of America		1,200		45,408
Omega Protein Corp. (a)		4,780		58,746
Orchids Paper Products Co.		1,500		49,260
Pantry Inc., The (a)		6,339		106,368

See accompanying notes to financial statements. 103

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Consumer Staples (Cont.)
Pilgrim’s Pride Corp. (a)		15,566	$	252,948
Post Holdings Inc. (a)		8,300		408,941
PriceSmart Inc.		4,800		554,592
Revlon Inc. Class A (a)		3,100		77,376
Rite Aid Corp. (a)		185,043		936,318
Roundy’s Inc.		6,259		61,714
Sanderson Farms Inc.		5,845		422,769
Seaboard Corp.		73		204,033
Seneca Foods Corp. Class A (a)		2,101		67,001
Snyders-Lance Inc.		11,858		340,562
Spartan Stores Inc.		9,266		224,978
Spectrum Brands Holdings Inc.		5,490		387,320
Star Scientific Inc. (a)		43,800		50,808
SUPERVALU Inc. (a)		52,100		379,809
Susser Holdings Corp. (a)		4,500		294,705
Synutra International Inc. (a)		4,500		39,960
Tootsie Roll Industries Inc.		5,178		168,492
TreeHouse Foods Inc. (a)		9,167		631,790
United Natural Foods Inc. (a)		12,546		945,843
Universal Corp.		6,005		327,873
USANA Health Sciences Inc. (a)		1,474		111,405
Vector Group Ltd.		16,220		265,519
Village Super Market Inc. Class A		1,528		47,383
WD-40 Co.		3,962		295,882
Weis Markets Inc.		2,796		146,958
				16,122,373
Energy (5.40%)
Abraxas Petroleum Corp. (a)		20,468		67,135
Adams Resources & Energy Inc.		500		34,250
Alon USA Energy Inc.		5,700		94,278
Alpha Natural Resources Inc. (a)		56,400		402,696
Amyris Inc. (a)		7,682		40,638
Apco Oil and Gas International Inc. (a)		2,300		35,857
Approach Resources Inc. (a)		8,792		169,598
Arch Coal Inc.		53,800		239,410
Athlon Energy Inc. (a)		4,508		136,367
Basic Energy Services Inc. (a)		7,800		123,084
Bill Barrett Corp. (a)		12,574		336,732
Bolt Technology Corp.		2,200		48,422
Bonanza Creek Energy Inc. (a)		7,500		326,025
BPZ Resources Inc. (a)		30,800		56,056
Bristow Group Inc.		9,223		692,278
C&J Energy Services Inc. (a)		11,329		261,700
Cal Dive International Inc. (a)		23,514		47,263
Callon Petroleum Co. (a)		9,694		63,302
CARBO Ceramics Inc.		5,000		582,650
Carrizo Oil & Gas Inc. (a)		11,590		518,884
Clayton Williams Energy Inc. (a)		1,549		126,941
Clean Energy Fuels Corp. (a)		17,555		226,108
Cloud Peak Energy Inc. (a)		15,787		284,166
Comstock Resources Inc.		12,372		226,284
Contango Oil & Gas Co. (a)		3,749		177,178
Crosstex Energy Inc.		12,119		438,223
Dawson Geophysical Co. (a)		2,000		67,640
Delek US Holdings Inc.		9,500		326,895
Diamondback Energy Inc. (a)		4,900		259,014

	Shares		Value
Common Stocks (Cont.)
Energy (Cont.)
Emerald Oil Inc. (a)		14,030	$	107,470
Endeavour International Corp. (a)		11,431		60,013
Energy XXI (Bermuda) Ltd.		20,093		543,717
EPL Oil & Gas Inc. (a)		7,425		211,612
Equal Energy Ltd.		8,700		46,458
Era Group Inc. (a)		5,000		154,300
Evolution Petroleum Corp.		4,836		59,676
EXCO Resources Inc.		33,800		179,478
EXCO Resources Inc. Rights (a)		35,800		5,728
Exterran Holdings Inc. (a)		14,506		496,105
Forest Oil Corp. (a)		29,900		107,939
Forum Energy Technologies Inc. (a)		10,157		287,037
Frontline Ltd. (a)		12,714		47,550
FX Energy Inc. (a)		12,900		47,214
GasLog Ltd.		6,700		114,503
Gastar Exploration Inc. (a)		14,162		98,001
Geospace Technologies Corp. (a)		3,300		312,939
Global Geophysical Services Inc. (a)		6,554		10,552
Goodrich Petroleum Corp. (a)		7,762		132,109
Green Plains Renewable Energy Inc.		6,400		124,096
Gulf Island Fabrication Inc.		3,882		90,140
GulfMark Offshore Inc. Class A		6,799		320,437
Halcon Resources Corp. (a)		59,995		231,581
Hallador Energy Co.		1,737		14,000
Helix Energy Solutions Group Inc. (a)		27,194		630,357
Hercules Offshore Inc. (a)		40,157		262,225
Hornbeck Offshore Services Inc. (a)		9,134		449,667
ION Geophysical Corp. (a)		32,713		107,953
Isramco Inc. (a)		272		34,558
Jones Energy Inc. Class A (a)		2,959		42,846
Key Energy Services Inc. (a)		38,305		302,610
KiOR Inc. Class A (a)		10,854		18,235
Knightsbridge Tankers Ltd.		7,886		72,472
Kodiak Oil & Gas Corp. (a)		67,309		754,534
L&L Energy Inc. (a) (b)		7,400		6,216
Magnum Hunter Resources Corp. (a)		44,079		322,217
Magnum Hunter Resources Corp. Warrants (a) (b)		4,267		0
Matador Resources Co. (a)		14,845		276,711
Matrix Service Co. (a)		6,700		163,949
Midstates Petroleum Company Inc. (a)		8,176		54,125
Miller Energy Resources Inc. (a)		7,630		53,715
Mitcham Industries Inc. (a)		3,269		57,894
Natural Gas Services Group (a)		3,100		85,467
Newpark Resources Inc. (a)		22,157		272,310
Nordic American Tankers Ltd.		19,272		186,938
Northern Oil and Gas Inc. (a)		16,095		242,552
Nuverra Environmental Solutions Inc. (a)		3,580		60,108
Panhandle Oil & Gas Inc.		1,763		58,902
Parker Drilling Co. (a)		29,921		243,258
PDC Energy Inc. (a)		9,023		480,204
Penn Virginia Corp. (a)		13,634		128,569
Petroquest Energy Inc. (a)		14,265		61,625
PHI Inc. (a)		3,200		138,880
Pioneer Energy Services Corp. (a)		16,064		128,673
Quicksilver Resources Inc. (a)		33,300		102,231

104 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Energy (Cont.)
Renewable Energy Group Inc. (a)		5,200	$	59,592
Rentech Inc. (a)		56,994		99,740
Resolute Energy Corp. (a)		17,923		161,845
REX American Resources Corp. (a)		1,500		67,065
Rex Energy Corp. (a)		11,600		228,636
RigNet Inc. (a)		3,100		148,583
Rosetta Resources Inc. (a)		15,655		752,066
Sanchez Energy Corp. (a)		9,851		241,448
Scorpio Tankers Inc.		46,662		550,145
SEACOR Holdings Inc. (a)		5,100		465,120
SemGroup Corp. Class A		10,764		702,136
Ship Finance International Ltd.		14,485		237,264
Solazyme Inc. (a)		11,846		129,003
Stone Energy Corp. (a)		12,874		445,312
Swift Energy Co. (a)		10,920		147,420
Synergy Resources Corp. (a)		12,592		116,602
Targa Resources Corp.		8,364		737,454
Teekay Tankers Ltd. Class A		15,994		62,856
Tesco Corp. (a)		7,523		148,805
TETRA Technologies Inc. (a)		20,000		247,200
TGC Industries Inc.		3,885		28,360
Triangle Petroleum Corp. (a)		16,879		140,433
Uranium Energy Corp. (a)		21,500		43,000
Ur-Energy Inc. (a)		30,100		41,538
VAALCO Energy Inc. (a)		14,700		101,283
Vantage Drilling Co. (a)		54,436		100,162
W&T Offshore Inc.		8,600		137,600
Warren Resources Inc. (a)		18,346		57,606
Western Refining Inc.		13,781		584,452
Westmoreland Coal Co. (a)		3,267		63,020
Willbros Group Inc. (a)		9,700		91,374
ZaZa Energy Corp. (a)		6,300		6,020
				23,154,870
Financials (21.38%)
1st Source Corp.		3,827		122,234
1st United Bancorp Inc.		8,100		61,641
Acadia Realty Trust		13,830		343,399
Access National Corp.		1,900		28,405
AG Mortgage Investment Trust Inc.		7,460		116,674
Agree Realty Corp.		3,820		110,856
Alexander & Baldwin Inc.		11,000		459,030
Alexander’s Inc.		519		171,270
Altisource Residential Corp.		10,873		327,386
Ambac Financial Group Inc. (a)		11,300		277,528
American Assets Trust Inc.		8,647		271,775
American Capital Mortgage Investment Corp.		13,695		239,115
American Equity Investment Life Holding Co.		16,342		431,102
American National Bankshares Inc.		2,000		52,500
American Realty Capital Properties Inc.		39,130		503,212
American Residential Properties Inc. (a)		3,627		62,239
Ameris Bancorp (a)		6,127		129,341

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Amerisafe Inc.		4,700	$	198,528
Ames National Corp.		2,200		49,258
Amreit Inc. Class B		5,100		85,680
AmTrust Financial Services Inc.		7,911		258,611
Anworth Mortgage Asset Corp.		36,343		153,004
Apollo Commercial Real Estate Finance Inc.		9,762		158,632
Apollo Residential Mortgage Inc.		8,488		125,453
Ares Commercial Real Estate Corp.		5,310		69,561
Argo Group International Holdings Ltd.		6,934		322,362
Arlington Asset Investment Corp. Class A		4,303		113,556
Armada Hoffler Properties Inc.		4,700		43,616
Armour Residential REIT Inc.		96,639		387,522
Arrow Financial Corp.		2,814		74,740
Ashford Hospitality Prime Inc.		3,050		55,510
Ashford Hospitality Trust Inc.		15,250		126,270
Associated Estates Realty Corp.		14,978		240,397
Astoria Financial Corp.		22,400		309,792
AV Homes Inc. (a)		2,348		42,663
Aviv REIT Inc.		2,900		68,730
Baldwin & Lyons Inc.		2,311		63,137
Banc of California Inc.		4,051		54,324
BancFirst Corp.		1,848		103,599
Banco Latinoamericano de Comercio Exterior SA		7,400		207,348
Bancorp Inc., The (a)		8,172		146,361
BancorpSouth Inc.		24,361		619,257
Bank Mutual Corp.		11,919		83,552
Bank of Kentucky Financial Corp., The		1,725		63,652
Bank of Marin Bancorp		1,600		69,424
Bank of the Ozarks Inc.		7,936		449,098
BankFinancial Corp.		5,403		49,491
Banner Corp.		4,965		222,531
Bar Harbor Bankshares		1,000		39,990
BBCN Bancorp Inc.		20,332		337,308
BBX Capital Corp. Class A (a)		1,800		28,080
Beneficial Mutual Bancorp Inc. (a)		8,145		88,943
Berkshire Hills Bancorp Inc.		6,636		180,964
BGC Partners Inc. Class A		33,301		201,804
Blue Capital Reinsurance Holdings Ltd. (a)		1,600		29,392
BNC Bancorp		4,500		77,130
BofI Holding Inc. (a)		3,134		245,800
Boston Private Financial Holdings Inc.		20,151		254,306
Bridge Bancorp Inc.		2,985		77,610
Bridge Capital Holdings (a)		2,253		46,277
Brookline Bancorp Inc.		17,892		171,226
Bryn Mawr Bank Corp.		3,700		111,666
C&F Financial Corp.		800		36,536
Calamos Asset Management Inc. Class A		4,651		55,068
California First National Bancorp		800		12,080
Camden National Corp.		2,000		84,440
Campus Crest Communities Inc.		16,178		152,235

See accompanying notes to financial statements. 105

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Capital Bank Financial Corp. Class A (a)		6,200	$	141,050
Capital City Bank Group Inc. (a)		2,998		35,286
Capitala Finance Corp.		1,100		21,890
Capitol Federal Financial Inc.		37,800		457,758
Capstead Mortgage Corp.		24,694		298,304
Cardinal Financial Corp.		7,567		136,206
Cascade Bancorp (a)		1,473		7,704
Cash America International Inc.		7,380		282,654
Cathay General Bancorp		19,846		530,484
Cedar Realty Trust Inc.		17,975		112,524
Center Bancorp Inc.		2,986		56,017
Centerstate Banks Inc.		7,324		74,339
Central Pacific Financial Corp.		5,494		110,320
Century Bancorp Inc. Class A		809		26,899
Chambers Street Properties		59,898		458,220
Charter Financial Corp.		5,663		60,991
Chatham Lodging Trust		6,689		136,790
Chemical Financial Corp.		7,556		239,299
Chemung Financial Corp.		900		30,753
Chesapeake Lodging Trust		12,183		308,108
CIFC Corp.		1,677		13,047
Citizens & Northern Corp.		3,100		63,953
Citizens Inc. (a)		10,800		94,500
City Holding Co.		3,968		183,837
Clifton Savings Bancorp Inc.		2,225		28,480
CNB Financial Corp.		3,800		72,200
CNO Financial Group Inc.		56,707		1,003,147
CoBiz Financial Inc.		9,374		112,113
Cohen & Steers Inc.		4,634		185,638
Colony Financial Inc.		19,504		395,736
Columbia Banking System Inc.		13,186		362,747
Community Bank System Inc.		10,336		410,132
Community Trust Bancorp Inc.		3,487		157,473
CommunityOne Bancorp (a)		2,500		31,875
ConnectOne Bancorp Inc. (a)		437		17,318
Consolidated-Tomoka Land Co.		1,442		52,330
Consumer Portfolio Services Inc. (a)		4,200		39,438
Coresite Realty Corp.		5,354		172,345
Cousins Properties Inc.		42,674		439,542
Cowen Group Inc. Class A (a)		25,279		98,841
Crawford & Co. Class B		6,776		62,610
Credit Acceptance Corp. (a)		1,824		237,102
CU Bancorp (a)		2,300		40,204
CubeSmart		33,655		536,461
Customers Bancorp Inc. (a)		5,000		102,300
CVB Financial Corp.		22,863		390,271
CyrusOne Inc.		4,766		106,425
CYS Investments Inc.		44,401		329,011
DCT Industrial Trust Inc.		73,724		525,652
DFC Global Corp. (a)		10,078		115,393
Diamond Hill Investment Group		700		82,838
DiamondRock Hospitality Co.		49,351		570,004
Dime Community Bancshares		8,269		139,911
Donegal Group Inc.		1,869		29,717
Doral Financial Corp. (a)		1,558		24,398
DuPont Fabros Technology Inc.		15,940		393,877

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Dynex Capital Inc.		14,501	$	116,008
Eagle Bancorp Inc. (a)		5,620		172,141
Eastern Insurance Holdings Inc.		1,700		41,633
EastGroup Properties Inc.		7,567		438,356
Education Realty Trust Inc.		28,564		251,934
eHealth Inc. (a)		4,800		223,152
Ellington Residential Mortgage REIT		1,795		27,607
EMC Insurance Group Inc.		1,281		39,224
Empire State Realty Trust Inc. Class A (a)		21,100		322,830
Employers Holdings Inc.		8,000		253,200
Encore Capital Group Inc. (a)		6,300		316,638
Enstar Group Ltd. (a)		2,400		333,384
Enterprise Bancorp Inc.		1,937		41,006
Enterprise Financial Services Corp.		4,776		97,526
EPR Properties		12,995		638,834
Equity One Inc.		14,995		336,488
ESB Financial Corp.		3,048		43,282
ESSA Bancorp Inc.		2,000		23,120
Essent Group Ltd. (a)		5,800		139,548
EverBank Financial Corp.		20,581		377,456
Evercore Partners Inc. Class A		8,000		478,240
Excel Trust Inc.		11,921		135,780
EZCORP Inc. Class A (a)		12,700		148,463
F.N.B. Corp.		38,161		481,592
Farmers Capital Bank Corp. (a)		1,900		41,325
FBL Financial Group Inc. Class A		2,198		98,448
FBR & Co. (a)		2,200		58,036
Federal Agricultural Mortgage Corp. Class C		2,704		92,612
FelCor Lodging Trust Inc. (a)		31,918		260,451
Fidelity & Guaranty Life (a)		1,842		34,887
Fidelity Southern Corp.		3,834		63,683
Financial Engines Inc.		12,414		862,525
Financial Institutions Inc.		3,400		84,014
First American Financial Corp.		27,367		771,749
First Bancorp (North Carolina)		4,903		81,488
First BanCorp (Puerto Rico) (a)		17,800		110,182
First Bancorp Inc.		2,362		41,146
First Busey Corp.		17,879		103,698
First Cash Financial Services Inc. (a)		7,314		452,298
First Commonwealth Financial Corp.		25,234		222,564
First Community Bancshares Inc.		4,523		75,534
First Connecticut Bancorp Inc.		4,394		70,831
First Defiance Financial Corp.		2,394		62,172
First Federal Bancshares of Arkansas Inc. (a)		900		7,830
First Financial Bancorp		15,041		262,165
First Financial Bankshares Inc.		7,952		527,377
First Financial Corp. Indiana		2,799		102,331
First Financial Holdings Inc.		6,111		406,443
First Financial Northwest Inc.		4,100		42,517
First Industrial Realty Trust Inc.		27,598		481,585
First Interstate BancSystem Inc.		4,357		123,608
First Marblehead Corp., The (a)		2,270		16,775
First Merchants Corp.		9,171		208,732
First Midwest Bancorp Inc.		19,251		337,470

106 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
First NBC Bank Holding Co. (a)		1,000	$	32,300
First of Long Island Corp., The		2,100		90,027
First Potomac Realty Trust		15,372		178,776
First Security Group Inc. (a)		15,500		35,650
FirstMerit Corp.		41,797		929,147
Flagstar Bancorp Inc. (a)		4,900		96,138
Flushing Financial Corp.		8,197		169,678
Forestar Group Inc. (a)		8,700		185,049
Fortegra Financial Corp. (a)		1,400		11,578
Fox Chase Bancorp		2,983		51,845
Franklin Financial Corp. (a)		2,632		52,061
Franklin Street Properties Corp.		23,538		281,279
FXCM Inc. Class A		9,162		163,450
Gain Capital Holdings Inc.		2,500		18,775
GAMCO Investors Inc.		1,500		130,455
Geo Group Inc., The		18,152		584,857
German American Bancorp Inc.		3,100		88,350
Getty Realty Corp.		6,394		117,458
GFI Group Inc.		18,256		71,381
Glacier Bancorp Inc.		17,944		534,552
Gladstone Commercial Corp.		3,700		66,489
Glimcher Realty Trust		37,286		348,997
Global Indemnity PLC (a)		2,318		58,645
Government Properties Income Trust		14,040		348,894
Gramercy Property Trust Inc. (a)		14,800		85,100
Great Southern Bancorp Inc.		2,867		87,185
Green Dot Corp. Class A (a)		6,600		165,990
Greenhill & Co. Inc.		7,200		417,168
Greenlight Capital Re Ltd. Class A (a)		7,103		239,442
Guaranty Bancorp		3,860		54,233
Hallmark Financial Services Inc. (a)		3,700		32,874
Hampton Roads Bankshares Inc. (a)		8,300		14,525
Hancock Holding Co.		21,430		786,052
Hanmi Financial Corp.		7,852		171,880
Hannon Armstrong Sustainable Infrastructure Capital Inc.		3,600		50,256
HCI Group Inc.		2,400		128,400
Health Insurance Innovations Inc. Class A (a)		1,113		11,252
Healthcare Realty Trust Inc.		24,191		515,510
Heartland Financial USA Inc.		3,643		104,882
Heritage Commerce Corp.		5,133		42,296
Heritage Financial Corp.		3,900		66,729
Heritage Oaks Bancorp (a)		5,100		38,250
Hersha Hospitality Trust		52,239		290,971
HFF Inc. Class A (a)		8,637		231,903
Highwoods Properties Inc.		22,566		816,212
Hilltop Holdings Inc. (a)		15,788		365,176
Hingham Institution for Savings		300		23,547
Home Bancorp Inc. (a)		1,800		33,930
Home Bancshares Inc.		11,316		422,653
Home Federal Bancorp Inc.		3,500		52,150
Home Loan Servicing Solutions Ltd.		18,033		414,218
HomeStreet Inc.		3,200		64,000
HomeTrust Bancshares Inc. (a)		5,339		85,371
Horace Mann Educators Corp.		10,002		315,463

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Horizon Bancorp		2,100	$	53,193
Hudson Pacific Properties Inc.		11,293		246,978
Hudson Valley Holding Corp.		4,352		88,563
IBERIABANK Corp.		7,577		476,214
ICG Group Inc. (a)		9,421		175,513
Imperial Holdings Inc. (a)		4,300		28,122
Independence Holding Co.		1,974		26,629
Independent Bank Corp.		6,110		239,451
Independent Bank Group Inc.		900		44,694
Infinity Property & Casualty Corp.		2,886		207,070
Inland Real Estate Corp.		22,217		233,723
International Bancshares Corp.		13,350		352,306
Intervest Bancshares Corp. Class A (a)		4,500		33,795
INTL FCStone Inc. (a)		3,527		65,391
Invesco Mortgage Capital		34,382		504,728
Investment Technology Group Inc. (a)		9,512		195,567
Investors Bancorp Inc.		12,864		329,061
Investors Real Estate Trust		25,848		221,776
Investors Title Co.		300		24,294
iStar Financial Inc. (a)		21,600		308,232
Janus Capital Group Inc.		37,900		468,823
JAVELIN Mortgage Investment Corp.		3,269		45,537
JGWPT Holdings Inc. Class A (a)		2,500		43,475
JMP Group Inc.		3,514		26,004
Kansas City Life Insurance Co.		1,057		50,461
KCG Holdings Inc. Class A (a)		18,067		216,081
Kearny Financial Corp. (a)		3,206		37,286
Kennedy-Wilson Holdings Inc.		14,075		313,169
Kite Realty Group Trust		33,629		220,943
Ladenburg Thalmann Financial Services Inc. (a)		26,630		83,352
Lakeland Bancorp Inc.		9,640		119,247
Lakeland Financial Corp.		4,232		165,048
LaSalle Hotel Properties		26,553		819,426
LCNB Corp.		2,100		37,527
Lexington Realty Trust		45,506		464,616
LTC Properties Inc.		8,703		307,999
Macatawa Bank Corp. (a)		5,900		29,500
Maiden Holdings Ltd.		12,700		138,811
MainSource Financial Group Inc.		5,161		93,053
Manning & Napier Inc.		3,577		63,134
Marcus & Millichap Inc. (a)		1,800		26,820
MarketAxess Holdings Inc.		9,451		631,988
Marlin Business Services Corp.		2,159		54,407
MB Financial Inc.		13,767		441,783
Meadowbrook Insurance Group Inc.		12,962		90,216
Medical Properties Trust Inc.		40,838		499,040
Mercantile Bank Corp.		2,200		47,476
Merchants Bancshares Inc.		1,308		43,818
Meridian Interstate Bancorp Inc. (a)		2,126		48,005
Meta Financial Group Inc.		1,400		56,462
Metro Bancorp Inc. (a)		3,600		77,544
MetroCorp Bancshares Inc.		4,000		60,280
MGIC Investment Corp. (a)		81,951		691,666
Middleburg Financial Corp.		1,400		25,256
MidSouth Bancorp Inc.		1,900		33,934

See accompanying notes to financial statements. 107

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
MidWestOne Financial Group Inc.		1,700	$	46,240
Monmouth Real Estate Investment Corp. Class A		12,300		111,807
Montpelier Re Holdings Ltd.		11,106		323,185
NASB Financial Inc.		1,100		33,220
National Bank Holdings Corp. Class A		11,400		243,960
National Bankshares Inc.		1,700		62,713
National Health Investors Inc.		7,401		415,196
National Interstate Corp.		1,513		34,799
National Penn Bancshares Inc.		29,886		338,608
National Western Life Insurance Co.		575		128,541
Navigators Group Inc., The (a)		2,572		162,448
NBT Bancorp Inc.		11,397		295,182
Nelnet Inc. Class A		5,900		248,626
New Residential Investment Corp.		64,667		431,976
New York Mortgage Trust Inc.		15,966		111,602
NewBridge Bancorp (a)		6,300		47,250
NewStar Financial Inc. (a)		6,732		119,628
Nicholas Financial Inc.		2,406		37,870
Northfield Bancorp Inc.		15,235		201,102
Northrim BanCorp Inc.		1,700		44,608
NorthStar Realty Finance Corp.		74,006		995,381
Northwest Bancshares Inc.		23,958		354,099
OceanFirst Financial Corp.		3,300		56,529
OFG Bancorp		11,996		208,014
Old National Bancorp		25,742		395,655
OmniAmerican Bancorp Inc. (a)		3,205		68,523
One Liberty Properties Inc.		3,247		65,362
OneBeacon Insurance Group Ltd. Class A		5,448		86,187
Oppenheimer Holdings Inc. Class A		2,680		66,410
Oritani Financial Corp.		11,505		184,655
Pacific Continental Corp.		4,600		73,324
Pacific Premier Bancorp Inc. (a)		4,500		70,830
PacWest Bancorp		9,581		404,510
Palmetto Bancshares Inc. (a)		1,100		14,256
Park National Corp.		2,970		252,658
Park Sterling Corp.		11,254		80,354
Parkway Properties Inc.		13,976		269,597
Peapack-Gladstone Financial Corp.		2,325		44,408
Pebblebrook Hotel Trust		15,490		476,472
Penns Woods Bancorp Inc.		1,257		64,107
Pennsylvania Real Estate Investment Trust		17,538		332,871
PennyMac Financial Services Inc. Class A (a)		3,214		56,406
PennyMac Mortgage Investment Trust		17,959		412,339
Peoples Bancorp Inc.		2,610		58,751
PHH Corp. (a)		14,369		349,885
Phoenix Companies Inc., The (a)		1,430		87,802
Physicians Realty Trust (a)		5,218		66,477
PICO Holdings Inc. (a)		5,707		131,889
Pinnacle Financial Partners Inc.		8,714		283,466
Piper Jaffray Companies Inc. (a)		4,023		159,110
Platinum Underwriters Holdings Ltd.		7,465		457,455
Portfolio Recovery Associates Inc. (a)		12,998		686,814
Potlatch Corp.		10,365		432,635
Preferred Bank (a)		3,000		60,150

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Primerica Inc.		14,382	$	617,132
PrivateBancorp Inc.		16,504		477,461
Prosperity Bancshares Inc.		15,152		960,485
Provident Financial Holdings Inc.		2,500		37,500
Provident Financial Services Inc.		15,018		290,148
PS Business Parks Inc.		4,882		373,082
Pzena Investment Management Inc. Class A		3,400		39,984
QTS Realty Trust Inc. Class A		3,700		91,686
Radian Group Inc.		44,312		625,685
RAIT Financial Trust		17,535		157,289
Ramco-Gershenson Properties Trust		17,071		268,698
RCS Capital Corp. Class A		600		11,010
RE/MAX Holdings Inc. Class A (a)		3,026		97,044
Redwood Trust Inc.		20,954		405,879
Regional Management Corp. (a)		1,500		50,895
Renasant Corp.		7,865		247,433
Republic Bancorp Inc. Class A		2,619		64,270
Resource America Inc. Class A		3,100		29,016
Resource Capital Corp.		33,024		195,832
Retail Opportunity Investments Corp.		17,958		264,342
Rexford Industrial Realty Inc.		4,202		55,466
RLI Corp.		5,438		529,552
RLJ Lodging Trust		31,227		759,441
Rockville Financial Inc.		6,568		93,331
Rouse Properties Inc.		5,600		124,264
Ryman Hospitality Properties Inc.		11,156		466,098
S&T Bancorp Inc.		7,862		198,987
Sabra Health Care REIT Inc.		9,584		250,526
Safeguard Scientifics Inc. (a)		5,216		104,789
Safety Insurance Group Inc.		3,364		189,393
Sandy Spring Bancorp Inc.		6,394		180,247
Saul Centers Inc.		2,048		97,751
Seacoast Banking Corporation of Florida (a)		4,861		59,304
Select Income REIT		5,433		145,278
Selective Insurance Group Inc.		14,311		387,256
Sierra Bancorp		3,400		54,706
Silver Bay Realty Trust Corp.		3,818		61,050
Silvercrest Asset Management Group Inc. Class A		700		11,935
Simmons First National Corp.		4,216		156,624
Southside Bancshares Inc.		4,475		122,347
Southwest Bancorp Inc. (a)		5,055		80,476
Sovran Self Storage Inc.		7,862		512,367
Springleaf Holdings Inc. (a)		6,228		157,444
STAG Industrial Inc.		10,925		222,761
State Auto Financial Corp.		4,058		86,192
State Bank Financial Corp.		8,398		152,760
StellarOne Corp.		5,700		137,199
Sterling Bancorp		21,080		281,840
Sterling Financial Corp.		8,695		296,326
Stewart Information Services Corp.		5,291		170,741
Stifel Financial Corp. (a)		16,248		778,604
Stonegate Mortgage Corp. (a)		2,100		34,713
Strategic Hotels & Resorts Inc. (a)		46,089		435,541
Suffolk Bancorp (a)		2,923		60,798

108 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Summit Hotel Properties Inc.		19,818	$	178,362
Sun Bancorp Inc. (a)		9,204		32,398
Sun Communities Inc.		9,108		388,365
Sunstone Hotel Investors Inc.		46,654		625,164
Susquehanna Bancshares Inc.		47,271		606,960
SWS Group Inc. (a)		6,997		42,542
SY Bancorp Inc.		3,567		113,859
Symetra Financial Corp.		20,797		394,311
Taylor Capital Group Inc. (a)		4,433		117,829
Tejon Ranch Co. (a)		3,536		129,983
Tejon Ranch Co. Warrants (a)		522		2,793
Terreno Realty Corp.		6,202		109,775
Territorial Bancorp Inc.		2,685		62,292
Texas Capital Bancshares Inc. (a)		10,337		642,961
Third Point Reinsurance Ltd. (a)		6,296		116,665
Tompkins Financial Corp.		3,746		192,507
Tower Group International Ltd.		14,308		48,361
TowneBank		6,680		102,805
Tree.com Inc. (a)		1,500		49,260
Trico Bancshares		4,092		116,090
Tristate Capital Holdings Inc. (a)		1,600		18,976
Trustco Bank Corp. NY		23,377		167,847
Trustmark Corp.		17,201		461,675
UMB Financial Corp.		9,057		582,184
UMH Properties Inc.		4,700		44,274
Umpqua Holdings Corp.		28,409		543,748
Union First Market Bankshares Corp.		5,263		130,575
United Bankshares Inc.		12,568		395,264
United Community Banks Inc. (a)		10,943		194,238
United Community Financial Corp. (a)		13,000		46,410
United Financial Bancorp Inc.		5,240		98,984
United Fire Group Inc.		5,292		151,669
Universal Health Realty Income Trust		3,005		120,380
Universal Insurance Holdings Inc.		6,500		94,120
Univest Corp. of Pennsylvania		4,199		86,835
Urstadt Biddle Properties Inc.		6,304		116,309
Vantagesouth Bancshares Inc. (a)		3,200		16,864
ViewPoint Financial Group Inc.		10,280		282,186
Virginia Commerce Bancorp (a)		7,286		123,789
Virtus Investment Partners Inc. (a)		1,677		335,484
Walker & Dunlop Inc. (a)		4,029		65,149
Walter Investment Management Corp. (a)		9,308		329,131
Washington Banking Co.		4,110		72,870
Washington Real Estate Investment Trust		16,890		394,550
Washington Trust Bancorp Inc.		3,856		143,520
Waterstone Financial Inc. (a)		1,900		21,090
Webster Financial Corp.		22,604		704,793
WesBanco Inc.		6,687		213,984
West Bancorporation		3,700		58,534
Westamerica Bancorporation		6,892		389,122
Western Alliance Bancorp (a)		18,800		448,568
Western Asset Mortgage Capital Corp.		6,011		89,444
Westfield Financial Inc.		4,660		34,764
Westwood Holdings Group Inc.		1,771		109,643

	Shares		Value
Common Stocks (Cont.)
Financials (Cont.)
Whitestone REIT		5,529	$	73,923
Wilshire Bancorp Inc.		17,470		190,947
Winthrop Realty Trust		8,305		91,770
Wintrust Financial Corp.		9,408		433,897
WisdomTree Investments Inc. (a)		25,656		454,368
World Acceptance Corp. (a)		2,181		190,903
WSFS Financial Corp.		2,035		157,774
Yadkin Financial Corp. (a)		3,600		61,344
ZAIS Financial Corp.		1,419		22,747
				91,728,385
Health Care (13.10%)
Abaxis Inc. (a)		5,721		228,954
Abiomed Inc. (a)		10,001		267,427
Acadia Healthcare Company Inc. (a)		9,000		425,970
ACADIA Pharmaceuticals Inc. (a)		17,800		444,822
Accelerate Diagnostics Inc. (a)		2,766		33,745
Acceleron Pharma Inc. (a)		1,628		64,469
Accretive Health Inc. (a)		15,525		142,209
Accuray Inc. (a)		19,444		169,357
AcelRx Pharmaceuticals Inc. (a)		6,400		72,384
Achillion Pharmaceuticals Inc. (a)		24,060		79,879
Acorda Therapeutics Inc. (a)		10,544		307,885
Addus HomeCare Corp. (a)		1,400		31,430
Aegerion Pharmaceuticals Inc. (a)		7,267		515,666
Aerie Pharmaceuticals Inc. (a)		2,000		35,920
Affymetrix Inc. (a)		18,600		159,402
Agios Pharmaceuticals Inc. (a)		1,697		40,643
Air Methods Corp. (a)		9,800		571,634
Akorn Inc. (a)		14,776		363,933
Albany Molecular Research Inc. (a)		5,800		58,464
Align Technology Inc. (a)		18,539		1,059,504
Alimera Sciences Inc. (a)		4,200		19,782
Alliance HealthCare Services Inc. (a)		1,200		29,688
Almost Family Inc. (a)		2,200		71,126
Alnylam Pharmaceuticals Inc. (a)		14,704		945,908
Alphatec Holdings Inc. (a)		16,800		33,768
AMAG Pharmaceuticals Inc. (a)		5,382		130,618
Amedisys Inc. (a)		7,988		116,864
Amicus Therapeutics Inc. (a)		7,678		18,043
AMN Healthcare Services Inc. (a)		11,888		174,754
Ampio Pharmaceuticals Inc. (a)		8,314		59,279
Amsurg Corp. (a)		8,204		376,728
Anacor Pharmaceuticals Inc. (a)		6,317		105,999
Analogic Corp.		3,106		275,067
Angiodynamics Inc. (a)		6,300		108,297
Anika Therapeutics Inc. (a)		3,000		114,480
Antares Pharma Inc. (a)		28,977		129,817
Aratana Therapeutics Inc. (a)		1,642		31,362
Arena Pharmaceuticals Inc. (a)		55,297		323,487
ArQule Inc. (a)		15,335		32,970
Array Biopharma Inc. (a)		31,778		159,208
ArthroCare Corp. (a)		7,015		282,284
athenahealth Inc. (a)		9,331		1,255,020
AtriCure Inc. (a)		5,168		96,538
Atrion Corp.		400		118,500

See accompanying notes to financial statements. 109

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Health Care (Cont.)
Auxilium Pharmaceuticals Inc. (a)		12,781	$	265,078
AVANIR Pharmaceuticals Inc. Class A (a)		37,500		126,000
Aveo Pharmaceuticals Inc. (a)		13,310		24,490
BIND Therapeutics Inc. (a)		1,377		20,779
BioDelivery Sciences International Inc. (a)		7,200		42,408
Biolase Inc. (a)		7,979		22,581
Bio-Reference Laboratories Inc. (a)		6,286		160,544
BioScrip Inc. (a)		14,554		107,700
BioTime Inc. (a)		8,436		30,370
Bluebird Bio Inc. (a)		1,696		35,582
Cadence Pharmaceuticals Inc. (a)		15,320		138,646
Cambrex Corp. (a)		7,481		133,386
Cantel Medical Corp.		8,400		284,844
Capital Senior Living Corp. (a)		7,200		172,728
Cardiovascular Systems Inc. (a)		6,270		214,998
Cell Therapeutics Inc. (a)		34,000		65,280
Celldex Therapeutics Inc. (a)		22,814		552,327
Cellular Dynamics International Inc. (a)		955		15,767
Cempra Inc. (a)		5,100		63,189
Centene Corp. (a)		13,809		814,041
Cepheid Inc. (a)		17,184		802,836
Cerus Corp. (a)		17,340		111,843
Chelsea Therapeutics International Ltd. (a)		20,300		89,929
Chemed Corp.		4,524		346,629
ChemoCentryx Inc. (a)		6,100		35,319
Chimerix Inc. (a)		2,133		32,230
Chindex International Inc. (a)		3,400		59,262
Clovis Oncology Inc. (a)		4,556		274,590
Computer Programs & Systems Inc.		2,784		172,079
Conatus Pharmaceuticals Inc. (a)		1,700		10,965
Conmed Corp.		7,029		298,732
Corcept Therapeutics Inc. (a)		11,830		38,093
Cornerstone Therapeutics Inc. (a)		1,800		17,082
Coronado Biosciences Inc. (a)		5,500		14,465
Corvel Corp. (a)		2,878		134,403
Cross Country Healthcare Inc. (a)		6,689		66,756
CryoLife Inc.		6,832		75,767
Cubist Pharmaceuticals Inc. Contingent Value Rights (a)		12,000		16,200
Curis Inc. (a)		23,487		66,233
Cutera Inc. (a)		3,600		36,648
Cyberonics Inc. (a)		6,976		456,998
Cynosure Inc. Class A (a)		4,972		132,653
Cytokinetics Inc. (a)		6,200		40,300
Cytori Therapeutics Inc. (a)		14,800		38,036
Dendreon Corp. (a)		39,000		116,610
DepoMed Inc. (a)		14,200		150,236
Derma Sciences Inc. (a)		3,100		33,542
Dexcom Inc. (a)		17,901		633,874
Durata Therapeutics Inc. (a)		3,478		44,484
Dyax Corp. (a)		31,263		235,410
Dynavax Technologies Corp. (a)		67,647		132,588
Emergent Biosolutions Inc. (a)		7,100		163,229
Emeritus Corp. (a)		10,500		227,115
Enanta Pharmaceuticals Inc. (a)		900		24,552

	Shares		Value
Common Stocks (Cont.)
Health Care (Cont.)
Endocyte Inc. (a)		7,478	$	79,940
Endologix Inc. (a)		16,229		283,034
Ensign Group Inc., The		5,000		221,350
Enzon Pharmaceuticals Inc.		9,015		10,457
Epizyme Inc. (a)		1,500		31,200
Esperion Therapeutics Inc. (a)		1,137		15,622
Exact Sciences Corp. (a)		18,376		214,815
Exactech Inc. (a)		2,600		61,776
ExamWorks Group Inc. (a)		7,792		232,747
Exelixis Inc. (a)		45,323		277,830
Fibrocell Science Inc. (a)		6,700		27,202
Five Prime Therapeutics Inc. (a)		1,500		25,185
Five Star Quality Care Inc. (a)		10,281		56,443
Fluidigm Corp. (a)		6,494		248,850
Foundation Medicine Inc. (a)		1,818		43,305
Furiex Pharmaceuticals Inc. (a)		1,578		66,292
Galena Biopharma Inc. (a)		26,100		129,456
GenMark Diagnostics Inc. (a)		8,882		118,219
Genomic Health Inc. (a)		4,300		125,861
Gentiva Health Services Inc. (a)		7,726		95,880
Geron Corp. (a)		33,973		161,032
Globus Medical Inc. Class A (a)		14,117		284,881
Greatbatch Inc. (a)		6,156		272,341
GTx Inc. (a)		6,425		10,601
Haemonetics Corp. (a)		13,104		552,072
Halozyme Therapeutics Inc. (a)		22,740		340,873
Hanger Inc. (a)		8,900		350,126
Harvard Apparatus Regenerative Techolonogy Inc. (a)		1,398		6,640
Harvard Bioscience Inc. (a)		5,592		26,282
Healthsouth Corp.		22,246		741,237
HealthStream Inc. (a)		5,282		173,091
Healthways Inc. (a)		8,570		131,550
HeartWare International Inc. (a)		4,202		394,820
Hi-Tech Pharmacal Co. Inc. (a)		2,900		125,831
HMS Holdings Corp. (a)		22,300		506,879
Horizon Pharma Inc. (a)		12,900		98,298
Hyperion Therapeutics Inc. (a)		2,100		42,462
ICU Medical Inc. (a)		3,232		205,911
Idenix Pharmaceuticals Inc. (a)		24,951		149,207
ImmunoGen Inc. (a)		21,593		316,769
Immunomedics Inc. (a)		18,285		84,111
Impax Laboratories Inc. (a)		17,400		437,436
Infinity Pharmaceuticals Inc. (a)		11,891		164,215
Insmed Inc. (a)		8,800		149,688
Insulet Corp. (a)		13,697		508,159
Insys Therapeutics Inc. (a)		1,300		50,323
Integra LifeSciences Holdings Corp. (a)		5,927		282,777
Intercept Pharmaceuticals Inc. (a)		1,800		122,904
InterMune Inc. (a)		22,918		337,582
Intrexon Corp. (a)		2,855		67,949
Invacare Corp.		8,104		188,094
IPC The Hospitalist Co. (a)		4,300		255,377
Ironwood Pharmaceuticals Inc. (a)		24,162		280,521
Isis Pharmaceuticals Inc. (a)		28,485		1,134,842
KaloBios Pharmaceuticals Inc. (a)		2,198		9,715
Karyopharm Therapeutics Inc. (a)		2,025		46,413

110 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Health Care (Cont.)
Keryx Biopharmaceuticals Inc. (a)		21,078	$	272,960
Kindred Healthcare Inc.		13,637		269,194
KYTHERA Biopharmaceuticals Inc. (a)		3,000		111,750
Landauer Inc.		2,380		125,212
Lannett Company Inc. (a)		4,700		155,570
LDR Holding Corp. (a)		1,551		36,604
Lexicon Pharmaceuticals Inc. (a)		58,500		105,300
LHC Group Inc. (a)		3,000		72,120
Ligand Pharmaceuticals Inc. Class B (a)		4,616		242,802
Luminex Corp. (a)		9,414		182,632
MacroGenics Inc. (a)		1,500		41,145
Magellan Health Services Inc. (a)		6,891		412,840
MannKind Corp. (a)		37,113		193,359
Masimo Corp. (a)		12,525		366,106
MedAssets Inc. (a)		15,308		303,558
Medical Action Industries Inc. (a)		3,600		30,816
Medicines Co., The (a)		16,076		620,855
Medidata Solutions Inc. (a)		13,456		815,030
MEI Pharma Inc. (a)		3,600		28,836
Merge Healthcare Inc. (a)		16,100		37,352
Meridian Bioscience Inc.		10,600		281,218
Merit Medical Systems Inc. (a)		10,996		173,077
Merrimack Pharmaceuticals Inc. (a)		25,500		136,170
MiMedx Group Inc. (a)		23,400		204,516
Molina Healthcare Inc. (a)		7,343		255,169
Momenta Pharmaceuticals Inc. (a)		11,911		210,586
MWI Veterinary Supply Inc. (a)		3,200		545,888
Nanosphere Inc. (a)		15,000		34,350
National Healthcare Corp.		2,773		149,492
National Research Corp. Class A (a)		2,400		45,168
Natus Medical Inc. (a)		7,800		175,500
Navidea Biopharmaceuticals Inc. (a)		29,700		61,479
Nektar Therapeutics (a)		29,208		331,511
Neogen Corp. (a)		9,176		419,343
NeoGenomics Inc. (a)		8,200		29,684
Neurocrine Biosciences Inc. (a)		16,738		156,333
NewLink Genetics Corp. (a)		4,200		92,442
Novavax Inc. (a)		48,381		247,711
NPS Pharmaceuticals Inc. (a)		25,415		771,599
NuVasive Inc. (a)		11,198		362,031
NxStage Medical Inc. (a)		14,819		148,190
Omeros Corp. (a)		7,200		81,288
Omnicell Inc. (a)		8,600		219,558
Omthera Pharmaceuticals Inc. Contingent Value Rights (a) (b)		1,326		0
OncoGenex Pharmaceutical Inc. (a)		3,596		29,991
OncoMed Pharmaceuticals Inc. (a)		1,167		34,450
Onconova Therapeutics Inc. (a)		1,475		16,933
Ophthotech Corp. (a)		2,300		74,405
Opko Health Inc. (a)		47,881		404,116
OraSure Technologies Inc. (a)		13,475		84,758
Orexigen Therapeutics Inc. (a)		26,144		147,191
Orthofix International NV (a)		5,200		118,664
Osiris Therapeutics Inc. (a)		4,300		69,144
OvaScience Inc. (a)		2,200		20,108
Owens & Minor Inc.		16,028		585,984

	Shares		Value
Common Stocks (Cont.)
Health Care (Cont.)
Oxford Immunotec Global PLC (a)		1,600	$	31,008
Pacific Biosciences of California Inc. (a)		11,869		62,075
Pacira Pharmaceuticals Inc. (a)		7,016		403,350
Parexel International Corp. (a)		14,440		652,399
PDL BioPharma Inc.		35,915		303,123
Peregrine Pharmaceuticals Inc. (a)		41,500		57,685
Pernix Therapeutics Holdings Inc. (a)		4,711		11,872
PharMerica Corp. (a)		7,418		159,487
PhotoMedex Inc. (a)		3,300		42,735
Portola Pharmaceuticals Inc. (a)		2,766		71,224
Pozen Inc.		6,699		53,860
Prestige Brands Holdings Inc. (a)		13,148		470,698
Progenics Pharmaceuticals Inc. (a)		15,369		81,917
Prothena Corp. PLC (a)		3,600		95,472
Providence Service Corp. (a)		2,599		66,846
PTC Therapeutics Inc. (a)		2,386		40,490
Puma Biotechnology Inc. (a)		5,662		586,187
Quality Systems Inc.		10,052		211,695
Questcor Pharmaceuticals Inc.		13,300		724,185
Quidel Corp. (a)		7,000		216,230
Raptor Pharmaceutical Corp. (a)		15,205		197,969
Receptos Inc. (a)		1,465		42,470
Regulus Therapeutics Inc. (a)		2,200		16,258
Relypsa Inc. (a)		1,527		38,175
Repligen Corp. (a)		7,700		105,028
Repros Therapeutics Inc. (a)		5,697		104,255
Rigel Pharmaceuticals Inc. (a)		21,497		61,266
Rockwell Medical Inc. (a)		9,756		101,853
RTI Surgical Inc. (a)		13,700		48,498
Sagent Pharmaceuticals Inc. (a)		4,839		122,814
Sangamo BioSciences Inc. (a)		15,942		221,434
Santarus Inc. (a)		14,000		447,440
Sarepta Therapeutics Inc. (a)		9,600		195,552
SciClone Pharmaceuticals Inc. (a)		14,700		74,088
Select Medical Holdings Corp.		12,134		140,876
Sequenom Inc. (a)		28,414		66,489
SIGA Technologies Inc. (a)		8,400		27,468
Skilled Healthcare Group Inc. Class A (a)		5,000		24,050
Solta Medical Inc. (a)		17,730		52,304
Spectranetics Corp. (a)		10,185		254,625
Spectrum Pharmaceuticals Inc. (a)		16,228		143,618
STAAR Surgical Co. (a)		9,524		154,194
Stemline Therapeutics Inc. (a)		2,300		45,080
STERIS Corp.		14,831		712,630
Sucampo Pharmaceuticals Inc. Class A (a)		3,900		36,660
Sunesis Pharmaceuticals Inc. (a)		8,610		40,811
Supernus Pharmaceuticals Inc. (a)		3,700		27,898
Surgical Care Affiliates Inc. (a)		2,850		99,294
SurModics Inc. (a)		3,600		87,804
Symmetry Medical Inc. (a)		9,208		92,817
Synageva BioPharma Corp. (a)		4,958		320,882
Synergy Pharmaceuticals Inc. (a)		20,000		112,600
Synta Pharmaceuticals Corp. (a)		12,900		67,596
Tandem Diabetes Care Inc. (a)		2,350		60,560

See accompanying notes to financial statements. 111

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Health Care (Cont.)
Targacept Inc. (a)		6,778	$	28,129
Team Health Holdings Inc. (a)		17,403		792,707
TearLab Corp. (a)		7,500		70,050
Tesaro Inc. (a)		3,600		101,664
Tetraphase Pharmaceuticals Inc. (a)		3,800		51,376
TG Therapeutics Inc. (a)		3,200		12,480
TherapeuticsMD Inc. (a)		21,900		114,099
Thoratec Corp. (a)		14,500		530,700
Threshold Pharmaceuticals Inc. (a)		11,400		53,238
Tornier NV (a)		6,502		122,173
Triple-S Management Corp. Class B (a)		5,900		114,696
U.S. Physical Therapy Inc.		3,200		112,832
Unilife Corp. (a)		25,194		110,854
Universal American Corp.		9,556		69,759
USMD Holdings Inc. (a)		300		6,033
Utah Medical Products Inc.		800		45,728
Vanda Pharmaceuticals Inc. (a)		8,400		104,244
Vascular Solutions Inc. (a)		4,400		101,860
Veracyte Inc. (a)		1,321		19,154
Verastem Inc. (a)		4,600		52,440
Vical Inc. (a)		18,663		22,022
ViroPharma Inc. (a)		16,683		831,648
VIVUS Inc. (a)		25,261		229,370
Vocera Communications Inc. (a)		5,200		81,172
Volcano Corp. (a)		14,000		305,900
WellCare Health Plans Inc. (a)		10,977		773,000
West Pharmaceutical Services Inc.		17,528		859,924
Wright Medical Group Inc. (a)		10,181		312,659
Xenoport Inc. (a)		10,722		61,652
XOMA Corp. (a)		19,800		133,254
Zeltiq Aesthetics Inc. (a)		4,300		81,313
ZIOPHARM Oncology Inc. (a)		20,691		89,799
Zogenix Inc. (a)		25,404		87,389
				56,193,483
Industrials (14.34%)
Aaon Inc.		7,267		232,181
AAR Corp.		9,903		277,383
ABM Industries Inc.		14,035		401,261
Acacia Research Corp.		12,252		178,144
ACCO Brands Corp. (a)		28,622		192,340
Accuride Corp. (a)		9,947		37,102
Aceto Corp.		6,964		174,170
Acorn Energy Inc.		4,500		18,315
Actuant Corp. Class A		18,393		673,920
Acuity Brands Inc.		10,913		1,193,009
Advisory Board Co., The (a)		9,056		576,596
Aegion Corp. (a)		10,056		220,126
Aerovironment Inc. (a)		4,804		139,941
Air Transport Services Group Inc. (a)		13,100		105,979
Aircastle Ltd.		17,604		337,293
Alamo Group Inc.		1,885		114,401
Albany International Corp. Class A		7,251		260,528
Allegiant Travel Co.		3,810		401,726
Altra Industrial Motion Corp.		6,900		236,118
Ameresco Inc. Class A (a)		5,100		49,266
American Railcar Industries Inc.		2,509		114,787

	Shares		Value
Common Stocks (Cont.)
Industrials (Cont.)
American Science & Engineering Inc.		2,081	$	149,645
American Superconductor Corp. (a)		9,196		15,081
American Woodmark Corp. (a)		2,433		96,176
Ampco-Pittsburgh Corp.		2,200		42,790
API Technologies Corp. (a)		8,300		28,303
Apogee Enterprises Inc.		7,436		267,027
Applied Industrial Technologies Inc.		10,549		517,850
ARC Document Solutions Inc. (a)		9,321		76,619
Argan Inc.		3,500		96,460
Arkansas Best Corp.		6,690		225,319
Astec Industries Inc.		5,014		193,691
Astronics Corp. (a)		3,843		195,993
Atlas Air Worldwide Holdings Inc. (a)		6,643		273,359
AZZ Inc.		6,400		312,704
Barnes Group Inc.		13,644		522,702
Barrett Business Services Inc.		1,800		166,932
Beacon Roofing Supply Inc. (a)		12,385		498,868
Blount International Inc. (a)		12,494		180,788
BlueLinx Holdings Inc. (a)		8,286		16,158
Brady Corp.		11,813		365,376
Briggs & Stratton Corp.		12,180		265,037
Brink’s Co., The		12,299		419,888
Builders FirstSource Inc. (a)		12,205		87,144
CAI International Inc. (a)		4,300		101,351
Capstone Turbine Corp. (a)		75,737		97,701
Casella Waste Systems Inc. Class A (a)		11,014		63,881
CBIZ Inc. (a)		9,736		88,792
CDI Corp.		3,486		64,596
CECO Environmental Corp.		4,484		72,506
Celadon Group Inc.		5,200		101,296
Cenveo Inc. (a)		13,671		47,028
Chart Industries Inc. (a)		7,700		736,428
CIRCOR International Inc.		4,521		365,206
Clarcor Inc.		12,513		805,212
Coleman Cable Inc.		2,470		64,763
Columbus McKinnon Corp. (a)		5,100		138,414
Comfort Systems USA Inc.		9,773		189,498
Commercial Vehicle Group Inc. (a)		6,196		45,045
Consolidated Graphics Inc. (a)		1,901		128,203
Corporate Executive Board Co., The		8,600		665,898
Courier Corp.		3,101		56,097
CRA International Inc. (a)		2,415		47,817
Cubic Corp.		5,165		271,989
Curtiss-Wright Corp.		11,878		739,168
Deluxe Corp.		13,000		678,470
DigitalGlobe Inc. (a)		18,923		778,681
Douglas Dynamics Inc.		5,610		94,360
Ducommun Inc. (a)		2,600		77,506
DXP Enterprises Inc. (a)		2,400		276,480
Dycom Industries Inc. (a)		8,333		231,574
Dynamic Materials Corp.		3,754		81,612
Echo Global Logistics Inc. (a)		4,500		96,660
EMCOR Group Inc.		16,956		719,613
Encore Wire Corp.		5,295		286,989
Energy Recovery Inc. (a)		11,500		63,940
EnerNOC Inc. (a)		6,830		117,544
EnerSys		12,185		854,047

112 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Industrials (Cont.)
Engility Holdings Inc. (a)		4,300	$	143,620
Ennis Inc.		6,632		117,386
Enphase Energy Inc. (a)		4,000		25,360
EnPro Industries Inc. (a)		5,248		302,547
Erickson Air-Crane Inc. (a)		900		18,711
ESCO Technologies Inc.		6,810		233,311
Esterline Technologies Corp. (a)		7,989		814,558
ExOne Co., The (a)		1,731		104,656
Exponent Inc.		3,329		257,798
Federal Signal Corp. (a)		16,134		236,363
Flow International Corp. (a)		12,300		49,692
Forward Air Corp.		7,708		338,458
Franklin Covey Co. (a)		2,200		43,736
Franklin Electric Co. Inc.		11,896		531,037
Freightcar America Inc.		3,060		81,457
FTI Consulting Inc. (a)		10,182		418,887
FuelCell Energy Inc. (a)		40,110		56,555
Furmanite Corp. (a)		9,400		99,828
G&K Services Inc. Class A		4,980		309,905
GenCorp Inc. (a)		15,226		274,373
Generac Holdings Inc.		13,090		741,418
General Cable Corp.		12,800		376,448
Gibraltar Industries Inc. (a)		8,082		150,244
Global Brass & Copper Holdings Inc.		2,000		33,100
Global Power Equipment Group Inc.		4,373		85,580
Gorman-Rupp Co., The		4,791		160,163
GP Strategies Corp. (a)		3,800		113,202
GrafTech International Ltd. (a)		29,900		335,777
Graham Corp.		2,600		94,354
Granite Construction Inc.		9,953		348,156
Great Lakes Dredge & Dock Co. (a)		14,800		136,160
Greenbrier Companies Inc., The (a)		6,234		204,725
Griffon Corp.		11,236		148,428
H&E Equipment Services Inc. (a)		7,500		222,225
Hardinge Inc.		3,000		43,410
Hawaiian Holdings Inc. (a)		13,000		125,190
Healthcare Services Group Inc.		17,547		497,808
Heartland Express Inc.		11,776		231,045
Heico Corp.		16,841		975,936
Heidrick & Struggles International Inc.		4,712		94,900
Heritage-Crystal Clean Inc. (a)		2,567		52,598
Herman Miller Inc.		14,700		433,944
HNI Corp.		11,547		448,370
Houston Wire & Cable Co.		4,500		60,210
Hub Group Inc. (a)		9,450		376,869
Hurco Companies Inc.		1,569		39,241
Huron Consulting Group Inc. (a)		5,990		375,693
Hyster-Yale Materials Handling Inc.		2,696		251,159
ICF International Inc. (a)		5,200		180,492
II-VI Inc. (a)		13,296		234,010
Innerworkings Inc. (a)		10,952		85,316
Innovative Solutions and Support Inc. (a)		3,100		22,599
Insperity Inc.		5,699		205,905
Insteel Industries Inc.		4,500		102,285
Interface Inc.		15,405		338,294
International Shipholding Corp.		1,333		39,324

	Shares		Value
Common Stocks (Cont.)
Industrials (Cont.)
Intersections Inc.		2,270	$	17,683
Jetblue Airways Corp. (a)		58,835		503,039
John Bean Technologies Corp.		7,400		217,042
Kadant Inc.		2,858		115,806
Kaman Corp.		6,846		271,992
Kelly Services Inc. Class A		6,716		167,497
Keyw Holding Corp., The (a)		7,911		106,324
Kforce Inc.		6,726		137,614
Kimball International Inc. Class B		8,683		130,505
Knight Transportation Inc.		14,296		262,189
Knoll Inc.		12,244		224,188
Korn/Ferry International (a)		12,233		319,526
Kratos Defense & Security Solutions Inc. (a)		11,824		90,808
L.B. Foster Co. Class A		2,536		119,927
Layne Christensen Co. (a)		4,986		85,161
Lindsay Corp.		3,298		272,910
LMI Aerospace Inc. (a)		2,700		39,798
LSI Industries Inc.		5,747		49,826
Lydall Inc. (a)		4,190		73,828
Manitex International Inc. (a)		3,900		61,932
Marten Transport Ltd.		5,797		117,041
MasTec Inc. (a)		15,081		493,450
Matson Inc.		11,000		287,210
McGrath Rentcorp		6,340		252,332
Meritor Inc. (a)		24,715		257,777
Middleby Corp., The (a)		4,793		1,150,176
Miller Industries Inc.		3,200		59,616
Mine Safety Appliances Co.		7,218		369,634
Mistras Group Inc. (a)		3,962		82,727
Mobile Mini Inc. (a)		9,747		401,381
Moog Inc. Class A (a)		11,440		777,234
Mueller Industries Inc.		7,197		453,483
Mueller Water Products Inc.		40,003		374,828
Multi-Color Corp.		3,273		123,523
MYR Group Inc. (a)		5,400		135,432
National Presto Industries Inc.		1,218		98,049
Navigant Consulting Inc. (a)		12,848		246,682
NCI Building Systems Inc. (a)		5,254		92,155
NL Industries Inc.		1,843		20,605
NN Inc.		4,617		93,217
Norcraft Companies Inc. (a)		1,936		37,984
Nortek Inc. (a)		2,289		170,759
Northwest Pipe Co. (a)		2,400		90,624
Odyssey Marine Exploration Inc. (a)		19,131		38,645
Omega Flex Inc.		600		12,276
On Assignment Inc. (a)		11,700		408,564
Orbital Sciences Corp. (a)		15,229		354,836
Orion Marine Group Inc. (a)		6,764		81,371
Pacer International Inc. (a)		9,470		78,222
Park-Ohio Holdings Corp. (a)		2,266		118,738
Patrick Industries Inc. (a)		1,700		49,181
Patriot Transportation Holding Inc. (a)		1,800		74,718
Pendrell Corp. (a)		40,546		81,497
Performant Financial Corp. (a)		5,500		56,650
PGT Inc. (a)		8,300		83,996
Pike Corp. (a)		6,400		67,648

See accompanying notes to financial statements. 113

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Industrials (Cont.)
Ply Gem Holdings Inc. (a)		3,900	$	70,317
PMFG Inc. (a)		5,100		46,155
Polypore International Inc. (a)		11,900		462,910
Powell Industries Inc.		2,355		157,761
Power Solutions International Inc. (a)		500		37,550
PowerSecure International Inc. (a)		5,500		94,435
Preformed Line Products Co.		600		43,896
Primoris Services Corp.		8,864		275,936
Proto Labs Inc. (a)		4,308		306,643
Quad Graphics Inc.		6,240		169,915
Quality Distribution Inc. (a)		5,376		68,974
Quanex Building Products Corp.		9,241		184,081
Raven Industries Inc.		9,184		377,830
RBC Bearings Inc. (a)		5,800		410,350
Republic Airways Holdings Inc. (a)		12,432		132,898
Resources Connection Inc.		10,564		151,382
Revolution Lighting Technologies Inc. (a)		7,400		25,345
Rexnord Corp. (a)		7,772		209,922
Roadrunner Transportation Systems Inc. (a)		4,831		130,195
RPX Corp. (a)		8,066		136,315
Rush Enterprises Inc. Class A (a)		9,068		268,866
Saia Inc. (a)		6,202		198,774
Schawk Inc.		3,482		51,777
Simpson Manufacturing Co. Inc.		10,357		380,413
SkyWest Inc.		13,121		194,584
Sparton Corp. (a)		2,600		72,670
Spirit Airlines Inc. (a)		15,455		701,812
Standard Plus Corp. (a)		3,900		101,556
Standex International Corp.		3,327		209,202
Steelcase Inc.		21,500		340,990
Sterling Construction Company Inc. (a)		4,300		50,439
Stock Building Supply Holdings Inc. (a)		1,998		36,404
Sun Hydraulics Corp.		5,400		220,482
Swift Transportation Co. (a)		21,261		472,207
Swisher Hygiene Inc. (a)		28,533		14,669
TAL International Group Inc.		8,600		493,210
Taser International Inc. (a)		12,792		203,137
Team Inc. (a)		5,200		220,168
Tecumseh Products Co. Class A (a)		4,600		41,630
Teledyne Technologies Inc. (a)		9,513		873,864
Tennant Co.		4,571		309,960
Tetra Tech Inc. (a)		16,421		459,460
Textainer Group Holdings Ltd.		5,300		213,166
Thermon Group Holdings Inc. (a)		6,724		183,767
Titan International Inc.		13,438		241,615
Titan Machinery Inc. (a)		4,300		76,626
TRC Companies Inc. (a)		4,335		30,952
Trex Co. Inc. (a)		4,434		352,636
TriMas Corp. (a)		11,455		456,940
TrueBlue Inc. (a)		10,310		265,792
Tutor Perini Corp. (a)		9,473		249,140
Twin Disc Inc.		2,052		53,126
Ultrapetrol Bahamas Ltd. (a)		5,300		19,822
UniFirst Corp.		3,775		403,925
United Stationers Inc.		10,208		468,445

	Shares		Value
Common Stocks (Cont.)
Industrials (Cont.)
Universal Forest Products Inc.		5,110	$	266,435
Universal Truckload Services Inc.		1,400		42,714
US Ecology Inc.		5,558		206,702
USG Corp. (a)		19,522		554,034
UTi Worldwide Inc.		23,300		409,148
Viad Corp.		5,162		143,400
Vicor Corp. (a)		4,808		64,523
VSE Corp.		1,100		52,811
Wabash National Corp. (a)		17,043		210,481
WageWorks Inc. (a)		6,400		380,416
Watsco Inc.		6,468		621,316
Watts Water Technologies Inc.		7,251		448,619
Werner Enterprises Inc.		11,626		287,511
Wesco Aircraft Holdings Inc. (a)		10,260		224,899
West Corp.		5,300		136,263
Woodward Inc.		17,410		794,070
Xerium Technologies Inc. (a)		2,700		44,523
XPO Logistics Inc. (a)		7,676		201,802
YRC Worldwide Inc. (a)		3,000		52,110
				61,546,346
Information Technology (17.61%)
Accelrys Inc. (a)		14,125		134,752
ACI Worldwide Inc. (a)		10,116		657,540
Actuate Corp. (a)		12,500		96,375
Acxiom Corp. (a)		18,661		690,084
Adtran Inc.		15,248		411,848
Advanced Energy Industries Inc. (a)		9,933		227,068
Advent Software Inc.		8,410		294,266
Aeroflex Holding Corp. (a)		4,884		31,746
Agilysys Inc. (a)		3,514		48,915
Alliance Fiber Optic Products Inc.		2,800		42,140
Alpha & Omega Semiconductor Ltd. (a)		4,490		34,618
Ambarella Inc. (a)		4,600		156,078
American Software Inc. Class A		6,300		62,181
Amkor Technology Inc. (a)		17,964		110,119
ANADIGICS Inc. (a)		20,400		37,536
Anaren Inc. (a)		2,846		79,660
Angie’s List Inc. (a)		10,500		159,075
Anixter International Inc.		6,835		614,056
Applied Micro Circuits Corp. (a)		18,562		248,360
Applied Optoelectronics Inc. (a)		1,100		16,511
ARRIS Group Inc. (a)		29,806		726,223
Aruba Networks Inc. (a)		29,155		521,874
Aspen Technology Inc. (a)		23,762		993,252
ATMI Inc. (a)		7,988		241,317
Audience Inc. (a)		2,400		27,936
AVG Technologies NV (a)		6,000		103,260
Aviat Networks Inc. (a)		15,150		34,239
Avid Technology Inc. (a)		8,400		68,460
Axcelis Technologies Inc. (a)		25,726		62,771
Badger Meter Inc.		3,730		203,285
Bankrate Inc. (a)		11,751		210,813
Barracuda Networks Inc. (a)		1,046		41,505
Bazaarvoice Inc. (a)		12,000		95,040

114 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Information Technology (Cont.)
Bel Fuse Inc.		2,483	$	52,913
Belden Inc.		11,173		787,138
Benchmark Electronics Inc. (a)		14,076		324,874
Benefitfocus Inc. (a)		1,325		76,506
Black Box Corp.		4,155		123,819
Blackbaud Inc.		11,711		440,919
Blackhawk Network Holdings Inc. (a)		2,800		70,728
Blucora Inc. (a)		10,420		303,847
Bottomline Technologies Inc. (a)		9,731		351,873
Brightcove Inc. (a)		7,000		98,980
BroadSoft Inc. (a)		7,000		191,380
Brooks Automation Inc.		17,449		183,040
Cabot Microelectronics Corp. (a)		5,861		267,848
CACI International Inc. Class A (a)		5,818		425,994
CalAmp Corp. (a)		9,100		254,527
Calix Inc. (a)		10,120		97,557
Callidus Software Inc. (a)		10,603		145,579
Carbonite Inc. (a)		2,900		34,307
Cardtronics Inc. (a)		11,400		495,330
Cass Information Systems Inc.		2,706		182,249
Cavium Inc. (a)		13,037		449,907
CEVA Inc. (a)		5,300		80,666
ChannelAdvisor Corp. (a)		1,566		65,318
Checkpoint Systems Inc. (a)		10,615		167,399
Chegg Inc. (a)		3,853		32,789
Ciber Inc. (a)		18,443		76,354
Ciena Corp. (a)		25,700		615,001
Cirrus Logic Inc. (a)		16,097		328,862
Cognex Corp.		22,022		840,800
Coherent Inc. (a)		6,200		461,218
Cohu Inc.		6,008		63,084
CommVault Systems Inc. (a)		11,888		890,173
Computer Task Group Inc.		4,000		75,600
comScore Inc. (a)		8,928		255,430
Comtech Telecommunications Corp.		4,388		138,310
Comverse Inc. (a)		5,549		215,301
Constant Contact Inc. (a)		7,700		239,239
Control4 Corp. (a)		1,142		20,213
Convergys Corp.		26,461		557,004
Cornerstone OnDemand Inc. (a)		10,192		543,641
CoStar Group Inc. (a)		7,228		1,334,144
Covisint Corp. (a)		1,975		24,786
Cray Inc. (a)		10,222		280,696
CSG Systems International Inc.		8,665		254,751
CTS Corp.		8,641		172,042
Cvent Inc. (a)		1,599		58,188
Cyan Inc. (a)		1,931		10,215
Cypress Semiconductor Corp.		37,600		394,800
Daktronics Inc.		9,652		151,343
Datalink Corp. (a)		4,900		53,410
Dealertrack Technologies Inc. (a)		11,041		530,851
Demand Media Inc. (a)		8,933		51,543
Demandware Inc. (a)		4,700		301,364
Dice Holdings Inc. (a)		10,518		76,256
Digi International Inc. (a)		6,780		82,174
Digimarc Corp.		1,481		28,524
Digital River Inc. (a)		8,778		162,393

	Shares		Value
Common Stocks (Cont.)
Information Technology (Cont.)
Diodes Inc. (a)		9,346	$	220,192
DSP Group Inc. (a)		4,724		45,870
DTS Inc. (a)		4,546		109,013
E2open Inc. (a)		3,700		88,467
EarthLink Inc.		27,140		137,600
Ebix Inc.		8,139		119,806
eGain Corp. (a)		3,300		33,792
Electro Rent Corp.		4,606		85,303
Electro Scientific Industries Inc.		6,538		68,387
Electronics for Imaging Inc. (a)		11,808		457,324
Ellie Mae Inc. (a)		6,748		181,319
Emulex Corp. (a)		20,580		147,353
Endurance International Group
Holdings Inc. (a)		5,634		79,890
Entegris Inc. (a)		35,713		414,271
Entropic Communications Inc. (a)		23,700		111,627
Envestnet Inc. (a)		5,700		229,710
EPAM Systems Inc. (a)		5,700		199,158
EPIQ Systems Inc.		8,290		134,381
ePlus Inc. (a)		918		52,179
Euronet Worldwide Inc. (a)		12,597		602,766
EVERTEC Inc.		7,400		182,484
Exar Corp. (a)		9,767		115,153
Exlservice Holdings Inc. (a)		8,464		233,776
Extreme Networks Inc. (a)		24,164		169,148
Fabrinet (a)		7,028		144,496
Fair Isaac Corp.		9,102		571,970
FARO Technologies Inc. (a)		4,249		247,717
FEI Co.		10,545		942,301
Finisar Corp. (a)		23,667		566,115
Fleetmatics Group Ltd. PLC (a)		4,500		194,625
Formfactor Inc. (a)		13,743		82,733
Forrester Research Inc.		3,152		120,596
Fusion-io Inc. (a)		21,000		187,110
Gerber Scientific Inc. Escrow Shares (a) (b)		6,402		0
Gigamon Inc. (a)		1,928		54,138
Global Cash Access Holdings Inc. (a)		16,837		168,202
Global Eagle Entertainment Inc. (a)		6,000		89,220
Glu Mobile Inc. (a)		16,612		64,621
Gogo Inc. (a)		2,731		67,756
GSI Group Inc. (a)		8,355		93,910
GSI Technology Inc. (a)		5,400		35,856
GT Advanced Technologies Inc. (a)		34,400		299,968
Guidance Software Inc. (a)		4,844		48,924
Guidewire Software Inc. (a)		12,385		607,732
Hackett Group Inc., The		6,294		39,086
Harmonic Inc. (a)		26,645		196,640
Heartland Payment Systems Inc.		9,175		457,282
Higher One Holdings Inc. (a)		8,471		82,677
Hittite Microwave Corp. (a)		8,100		500,013
Hutchinson Technology Inc. (a)		5,800		18,560
iGate Corp. (a)		8,726		350,436
Imation Corp. (a)		7,659		35,844
Immersion Corp. (a)		7,200		74,736
Imperva Inc. (a)		5,254		252,875
Infinera Corp. (a)		29,921		292,627

See accompanying notes to financial statements. 115

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Information Technology (Cont.)
Infoblox Inc. (a)		13,600	$	449,072
Inphi Corp. (a)		6,737		86,907
Insight Enterprises Inc. (a)		11,048		250,900
Integrated Device Technology Inc. (a)		33,703		343,434
Integrated Silicon Solution Inc. (a)		7,139		86,311
Interactive Intelligence Group (a)		4,011		270,181
InterDigital Inc.		10,592		312,358
Intermolecular Inc. (a)		4,700		23,124
Internap Network Services Corp. (a)		14,490		108,965
International Rectifier Corp. (a)		17,600		458,832
Intersil Corp. Class A		32,200		369,334
Intralinks Holdings Inc. (a)		9,533		115,445
InvenSense Inc. (a)		14,700		305,466
Itron Inc. (a)		10,000		414,300
Ixia (a)		13,999		186,327
IXYS Corp.		6,314		81,893
j2 Global Inc.		11,615		580,866
Jive Software Inc. (a)		9,900		111,375
Kemet Corp. (a)		10,879		61,358
Kopin Corp. (a)		17,200		72,584
KVH Industries Inc. (a)		4,200		54,726
Lattice Semiconductor Corp. (a)		29,593		163,057
Limelight Networks Inc. (a)		14,179		28,074
Lionbridge Technologies Inc. (a)		14,200		84,632
Liquidity Services Inc. (a)		6,312		143,030
Littelfuse Inc.		5,637		523,846
LivePerson Inc. (a)		13,900		205,998
LogMeIn Inc. (a)		6,070		203,648
LTX-Credence Corp. (a)		12,296		98,245
Luxoft Holding Inc. (a)		1,168		44,361
M/A-COM Technology Solutions Holdings Inc. (a)		2,600		44,174
Manhattan Associates Inc. (a)		4,905		576,239
ManTech International Corp. Class A		6,055		181,226
Marchex Inc. Class B		5,366		46,416
Marin Software Inc. (a)		2,300		23,552
Marketo Inc. (a)		1,731		64,168
Mavenir Systems Inc. (a)		1,446		16,137
MAXIMUS Inc.		17,296		760,851
MaxLinear Inc. Class A (a)		5,786		60,348
Maxwell Technologies Inc. (a)		6,900		53,613
Measurement Specialties Inc. (a)		3,900		236,691
Mentor Graphics Corp.		24,256		583,842
Mercury Systems Inc. (a)		7,978		87,359
Mesa Laboratories Inc.		700		55,006
Methode Electronics Inc.		9,367		320,258
Micrel Inc.		12,495		123,326
Microsemi Corp. (a)		23,561		587,847
MicroStrategy Inc. (a)		2,325		288,858
Millennial Media Inc. (a)		8,800		63,976
Mitek Systems Inc. (a)		7,100		42,174
MKS Instruments Inc.		13,578		406,525
Model N Inc. (a)		2,000		23,580
ModusLink Global Solutions Inc. (a)		9,195		52,687
MoneyGram International Inc. (a)		5,462		113,500
Monolithic Power Systems Inc. (a)		9,403		325,908
Monotype Imaging Holdings Inc.		9,700		309,042

	Shares		Value
Common Stocks (Cont.)
Information Technology (Cont.)
Monster Worldwide Inc. (a)		26,900	$	191,797
MoSys Inc. (a)		11,682		64,485
Move Inc. (a)		10,552		168,726
MTS Systems Corp.		3,970		282,862
Multi-Fineline Electronix Inc. (a)		2,134		29,641
Nanometrics Inc. (a)		5,904		112,471
Neonode Inc. (a)		7,300		46,136
NeoPhotonics Corp. (a)		5,000		35,300
Netgear Inc. (a)		9,848		324,393
NetScout Systems Inc. (a)		9,200		272,228
Newport Corp. (a)		10,018		181,025
NIC Inc.		16,406		408,017
Nimble Storage Inc. (a)		26		1,178
NumereX Corp. Class A (a)		3,427		44,380
NVE Corp. (a)		1,200		69,936
Omnivision Technologies Inc. (a)		14,045		241,574
OpenTable Inc. (a)		5,800		460,346
Oplink Communications Inc. (a)		5,145		95,697
OSI Systems Inc. (a)		5,065		269,002
Park Electrochemical Corp.		5,088		146,127
ParkerVision Inc. (a)		22,000		100,100
PC Connection Inc.		2,220		55,167
PC-Tel Inc.		4,700		44,979
PDF Solutions Inc. (a)		6,463		165,582
Pegasystems Inc.		4,340		213,441
Peregrine Semiconductor Corp. (a)		6,595		48,869
Perficient Inc. (a)		8,600		201,412
Pericom Semiconductor Corp. (a)		5,809		51,468
Photronics Inc. (a)		15,972		144,227
Planet Payment Inc. (a)		10,500		29,190
Plantronics Inc.		10,996		510,764
Plexus Corp. (a)		8,740		378,355
PLX Technology Inc. (a)		11,411		75,084
PMC-Sierra Inc. (a)		52,400		336,932
Power Integrations Inc.		7,389		412,454
PRGX Global Inc. (a)		7,431		49,936
Procera Networks Inc. (a)		5,444		81,769
Progress Software Corp. (a)		13,310		343,797
Proofpoint Inc. (a)		5,900		195,703
PROS Holdings Inc. (a)		5,800		231,420
PTC Inc. (a)		30,544		1,080,952
QAD Inc. Class A		1,458		25,748
QLIK Technologies Inc. (a)		22,039		586,899
QLogic Corp. (a)		23,100		273,273
Qualys Inc. (a)		3,700		85,507
Quantum Corp. (a)		52,795		63,354
QuinStreet Inc. (a)		8,298		72,110
Radisys Corp. (a)		5,929		13,577
Rally Software Development Corp. (a)		1,700		33,065
Rambus Inc. (a)		27,958		264,762
RealD Inc. (a)		9,798		83,675
Realnetworks Inc. (a)		5,369		40,536
RealPage Inc. (a)		11,616		271,582
Reis Inc. (a)		2,100		40,383
Responsys Inc. (a)		9,225		252,857
RF Micro Devices Inc. (a)		72,598		374,606

116 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Information Technology (Cont.)
Richardson Electronics Ltd.		2,833	$	32,183
Rocket Fuel Inc. (a)		1,226		75,387
Rofin-Sinar Technologies Inc. (a)		7,434		200,867
Rogers Corp. (a)		4,365		268,448
Rosetta Stone Inc. (a)		2,689		32,860
Rubicon Technology Inc. (a)		4,200		41,790
Ruckus Wireless Inc. (a)		11,800		167,560
Rudolph Technologies Inc. (a)		8,817		103,512
Sanmina Corp. (a)		20,826		347,794
Sapiens International Corp. NV		5,000		38,550
Sapient Corp. (a)		28,108		487,955
ScanSource Inc. (a)		6,978		296,077
SciQuest Inc. (a)		5,654		161,026
SeaChange International Inc. (a)		8,200		99,712
Semtech Corp. (a)		17,149		433,527
ServiceSource International Inc. (a)		15,159		127,032
ShoreTel Inc. (a)		14,639		135,850
Shutterstock Inc. (a)		1,900		158,897
Sigma Designs Inc. (a)		6,896		32,549
Silicon Graphics International Corp. (a)		8,400		112,644
Silicon Image Inc. (a)		19,073		117,299
Silver Spring Networks Inc. (a)		1,500		31,500
Sonus Networks Inc. (a)		56,106		176,734
Spansion Inc. Class A (a)		11,869		164,860
Spark Networks Inc. (a)		4,400		27,104
Speed Commerce Inc. (a)		12,600		58,842
SPS Commerce Inc. (a)		4,125		269,362
SS&C Technologies Holdings Inc. (a)		14,717		651,374
Stamps.com Inc. (a)		3,328		140,109
SunEdison Inc. (a)		67,556		881,606
SunPower Corp. (a)		10,400		310,024
Super Micro Computer Inc. (a)		8,307		142,548
Supertex Inc. (a)		2,380		59,619
Support.com Inc. (a)		13,100		49,649
Sykes Enterprises Inc. (a)		9,935		216,682
Synaptics Inc. (a)		8,324		431,266
Synchronoss Technologies Inc. (a)		7,300		226,811
SYNNEX Corp. (a)		6,705		451,917
Syntel Inc.		3,858		350,885
Take-Two Interactive Software Inc. (a)		20,400		354,348
Tangoe Inc. (a)		7,618		137,200
TechTarget (a)		3,326		22,816
TeleCommunication Systems Inc. Class A (a)		11,900		27,608
TeleNav Inc. (a)		4,108		27,072
TeleTech Holdings Inc. (a)		4,905		117,426
TESSCO Technologies Inc.		1,400		56,448
Tessera Technologies Inc.		13,272		261,591
Textura Corp. (a)		1,303		39,012
TiVo Inc. (a)		32,340		424,301
Travelzoo Inc. (a)		2,100		44,772
Tremor Video Inc. (a)		2,400		13,920
TriQuint Semiconductor Inc. (a)		41,915		349,571
Trulia Inc. (a)		7,169		252,851
TTM Technologies Inc. (a)		13,560		116,345
Tyler Technologies Inc. (a)		7,990		816,019
Ubiquiti Networks Inc. (a)		3,146		144,590

	Shares		Value
Common Stocks (Cont.)
Information Technology (Cont.)
Ultimate Software Group Inc., The (a)		6,978	$	1,069,169
Ultra Clean Holdings Inc. (a)		6,323		63,420
Ultratech Inc. (a)		6,879		199,491
Uni-Pixel Inc. (a)		2,500		25,025
Unisys Corp. (a)		11,379		381,993
United Online Inc.		3,322		45,711
Universal Display Corp. (a)		10,098		346,967
Unwired Planet Inc. (a)		23,012		31,757
ValueClick Inc. (a)		17,064		398,786
VASCO Data Security International Inc. (a)		6,902		53,352
Veeco Instruments Inc. (a)		10,102		332,457
Verint Systems Inc. (a)		13,377		574,408
ViaSat Inc. (a)		9,999		626,437
Viasystems Group Inc. (a)		1,056		14,446
Violin Memory Inc. (a)		4,877		19,313
Virnetx Holding Corp. (a)		10,627		206,270
Virtusa Corp. (a)		5,100		194,259
Vishay Precision Group Inc. (a)		3,021		44,983
VistaPrint NV (a)		8,334		473,788
Vocus Inc. (a)		4,400		50,116
Vringo Inc. (a)		16,700		49,432
Web.com Group Inc. (a)		10,557		335,607
WebMD Health Corp. (a)		7,282		287,639
Westell Technologies Inc. Class A (a)		12,062		48,851
WEX Inc. (a)		9,898		980,199
Wix.com Ltd. (a)		2,100		56,385
XO Group Inc. (a)		6,900		102,534
Xoom Corp. (a)		2,226		60,926
Yelp Inc. (a)		8,300		572,285
YuMe Inc. (a)		1,843		13,730
Zillow Inc. (a)		5,974		488,255
Zix Corp. (a)		16,400		74,786
Zygo Corp. (a)		4,300		63,554
				75,553,275
Materials (4.85%)
A. Schulman Inc.		7,645		269,563
Advanced Emissions Solutions Inc. (a)		2,800		151,844
AEP Industries Inc. (a)		1,100		58,112
AK Steel Holding Corp. (a)		34,300		281,260
Allied Nevada Gold Corp. (a)		25,800		91,590
AM Castle & Co. (a)		4,189		61,872
AMCOL International Corp.		6,944		235,957
American Pacific Corp. (a)		1,500		55,890
American Vanguard Corp.		7,413		180,062
Arabian American Development Co. (a)		5,000		62,750
Axiall Corp.		17,682		838,834
Balchem Corp.		7,588		445,416
Berry Plastics Group Inc. (a)		14,300		340,197
Boise Cascade Co. (a)		2,998		88,381
Calgon Carbon Corp. (a)		13,345		274,507
Century Aluminum Co. (a)		12,700		132,842
Chase Corp.		1,554		54,856

See accompanying notes to financial statements. 117

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Materials (Cont.)
Chemtura Corp. (a)		25,025	$	698,698
Clearwater Paper Corp. (a)		5,376		282,240
Coeur Mining Inc. (a)		25,446		276,089
Commercial Metals Co.		29,800		605,834
Deltic Timber Corp.		2,930		199,064
Ferro Corp. (a)		18,817		241,422
Flotek Industries Inc. (a)		12,328		247,423
FutureFuel Corp.		5,373		84,893
General Moly Inc. (a)		16,300		21,842
Globe Specialty Metals Inc.		16,405		295,454
Gold Resource Corp.		8,473		38,383
Graphic Packaging Holding Co. (a)		49,510		475,296
GSE Holding Inc. (a)		2,000		4,140
Handy & Harman Ltd. (a)		1,448		35,056
Hawkins Inc.		2,365		87,954
Haynes International Inc.		3,100		171,244
HB Fuller Co.		12,754		663,718
Headwaters Inc. (a)		18,276		178,922
Hecla Mining Co.		86,161		265,376
Horsehead Holding Corp. (a)		12,829		207,958
Innophos Holdings Inc.		5,700		277,020
Innospec Inc.		6,049		279,585
Intrepid Potash Inc. (a)		13,600		215,424
Kaiser Aluminum Corp.		4,800		337,152
Kapstone Paper and Packaging Corp. (a)		10,373		579,436
KMG Chemicals Inc.		2,001		33,797
Koppers Holdings Inc.		5,319		243,344
Kraton Performance Polymers Inc. (a)		8,414		193,943
Landec Corp. (a)		6,700		81,204
Louisiana-Pacific Corp. (a)		35,310		653,588
LSB Industries Inc. (a)		5,000		205,100
Marrone Bio Innovations Inc. (a)		1,356		24,110
Materion Corp.		5,252		162,024
Midway Gold Corp. (a)		25,705		20,821
Minerals Technologies Inc.		8,718		523,690
Molycorp Inc. (a)		39,059		219,512
Myers Industries Inc.		6,945		146,678
Neenah Paper Inc.		4,153		177,624
Noranda Aluminum Holding Corp.		8,404		27,649
Olin Corp.		20,610		594,598
Olympic Steel Inc.		2,300		66,654
OM Group Inc. (a)		8,191		298,234
Omnova Solutions Inc. (a)		11,758		107,115
P. H. Glatfelter Co.		10,796		298,401
Paramount Gold and Silver Corp. (a)		33,152		30,891
Penford Corp. (a)		2,400		30,840
PolyOne Corp.		25,319		895,027
Quaker Chemical Corp.		3,300		254,331
Resolute Forest Products (a)		18,001		288,376
RTI International Metals Inc. (a)		7,774		265,949
Schnitzer Steel Industries Inc. Class A		6,800		222,156
Schweitzer-Mauduit International Inc.		7,948		409,084
Sensient Technologies Corp.		12,653		613,924

	Shares		Value
Common Stocks (Cont.)
Materials (Cont.)
Stepan Co.		4,680	$	307,148
Stillwater Mining Co. (a)		29,699		366,486
SunCoke Energy Inc. (a)		17,990		410,352
Taminco Corp. (a)		3,900		78,819
Texas Industries Inc. (a)		5,427		373,269
Tredegar Corp.		6,399		184,355
UFP Technologies Inc. (a)		1,400		35,308
United States Lime & Minerals Inc. (a)		600		36,702
Universal Stainless & Alloy Products Inc. (a)		1,924		69,379
US Concrete Inc. (a)		3,400		76,942
US Silica Holdings Inc.		5,600		191,016
Walter Energy Inc.		16,200		269,406
Wausau Paper Corp.		12,326		156,294
Worthington Industries Inc.		13,496		567,912
Zep Inc.		5,831		105,891
Zoltek Companies Inc. (a)		7,105		119,009
				20,830,508
Telecommunication Services (0.74%)
8x8 Inc. (a)		22,529		228,895
Atlantic Tele-Network Inc.		2,449		138,540
Boingo Wireless Inc. (a)		4,010		25,704
Cbeyond Inc. (a)		7,000		48,300
Cincinnati Bell Inc. (a)		52,985		188,627
Cogent Communications Group Inc.		12,000		484,920
Consolidated Communications Holdings Inc.		10,142		199,087
FairPoint Communications Inc. (a)		5,294		59,875
General Communication Inc. Class A (a)		7,782		86,769
Hawaiian Telcom Holdco Inc. (a)		2,600		76,362
HickoryTech Corp.		3,244		41,621
IDT Corp. Class B		3,705		66,208
inContact Inc. (a)		13,320		104,029
Inteliquent Inc.		8,600		98,212
Iridium Communications Inc. (a)		15,983		100,054
Leap Wireless International Inc. (a)		13,674		237,928
Lumos Networks Corp.		3,750		78,750
magicJack VocalTec Ltd. (a)		4,600		54,832
NII Holdings Inc. (a)		42,800		117,700
NTELOS Holdings Corp.		3,750		75,862
Orbcomm Inc. (a)		9,990		63,337
Premiere Global Services Inc. (a)		11,940		138,385
RingCentral Inc. Class A (a)		2,327		42,747
Shenandoah Telecommunications Co.		6,038		154,995
Straight Path Communications Inc. Class B (a)		1,852		15,168
Towerstream Corp. (a)		16,474		48,763
USA Mobility Inc.		5,566		79,482
Vonage Holdings Corp. (a)		40,479		134,795
				3,189,947
Utilities (2.97%)
ALLETE Inc.		10,151		506,331

118 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Utilities (Cont.)
American States Water Co.		9,756	$	280,290
Artesian Resources Corp. Class A		1,786		40,989
Atlantic Power Corp.		31,544		109,773
Avista Corp.		15,306		431,476
Black Hills Corp.		11,289		592,785
California Water Service Group		12,282		283,346
Chesapeake Utilities Corp.		2,508		150,530
Cleco Corp.		15,280		712,354
Connecticut Water Service Inc.		2,624		93,178
Consolidated Water Co. Ltd.		3,594		50,675
Delta Natural Gas Company Inc.		1,700		38,046
Dynegy Inc. (a)		25,353		545,597
El Paso Electric Co.		10,232		359,246
Empire District Electric Co., The		10,730		243,464
Genie Energy Ltd. Class B (a)		3,205		32,723
Idacorp Inc.		12,855		666,403
Laclede Group Inc., The		8,354		380,441
MGE Energy Inc.		6,059		350,816
Middlesex Water Co.		3,953		82,776
New Jersey Resources Corp.		10,776		498,282
Northwest Natural Gas Co.		6,775		290,106
NorthWestern Corp.		9,611		416,349
NRG Yield Inc. Class A (a)		5,589		223,616
Ormat Technologies Inc.		4,405		119,860
Otter Tail Corp.		9,091		266,094
Pattern Energy Group Inc.		4,719		143,033
Piedmont Natural Gas Company Inc.		18,936		627,918
PNM Resources Inc.		20,570		496,148
Portland General Electric Co.		19,037		574,917
Pure Cycle Corp. (a)		4,300		27,219
SJW Corp.		3,948		117,611
South Jersey Industries Inc.		8,098		453,164
Southwest Gas Corp.		11,624		649,898
UIL Holdings Corp.		14,286		553,583
Unitil Corp.		3,398		103,605
UNS Energy Corp.		10,550		631,418
WGL Holdings Inc.		13,152		526,869
York Water Co.		3,400		71,161
				12,742,090
Total Common Stocks
(cost $288,130,808)				419,459,938
Registered Investment Companies (1.14%)
Financials (1.14%)
Apollo Investment Corp.		57,507		487,659
BlackRock Kelso Capital Corp.		18,510		172,698
Capital Southwest Corp.		3,428		119,534
Fidus Investment Corp.		3,400		73,916
Fifth Street Finance Corp.		35,055		324,259
Firsthand Technology Value Fund Inc.		2,200		50,974
Garrison Capital Inc.		1,500		20,820
Gladstone Capital Corp.		5,050		48,480
Gladstone Investment Corp.		6,110		49,247
Golub Capital BDC LLC Inc.		9,651		184,431

	Shares		Value
Registered Investment Companies (Cont.)
Financials (Cont.)
GSV Capital Corp. (a)		4,900	$	59,241
Hercules Technology Growth Capital Inc.		15,912		260,957
Horizon Technology Finance Corp.		2,100		29,841
KCAP Financial Inc.		6,961		56,175
Main Street Capital Corp.		9,974		326,050
MCG Capital Corp.		18,158		79,895
Medallion Financial Corp.		5,400		77,490
Medley Capital Corp.		9,962		137,974
MVC Capital Inc.		5,754		77,679
New Mountain Finance Corp.		11,663		175,412
NGP Capital Resources Co.		5,276		39,412
PennantPark Floating Rate Capital Ltd.		4,100		56,293
PennantPark Investment Corp.		17,415		202,014
Prospect Capital Corp.		69,854		783,762
Solar Capital Ltd.		11,218		252,966
Solar Senior Capital Ltd.		2,978		54,259
Stellus Capital Investment Corp.		3,100		46,345
TCP Capital Corp.		9,100		152,698
THL Credit Inc.		8,401		138,532
TICC Capital Corp.		13,063		135,071
Triangle Capital Corp.		6,984		193,108
WhiteHorse Finance Inc.		1,674		25,294
				4,892,486
Total Registered Investment Companies
(cost $5,108,950)				4,892,486
Short-term Investments (1.15%)
JPMorgan U.S. Government Money Market Fund		4,169,507		4,169,507
	Principal amount		Value
U.S. Treasury Bill (c)
0.050%, 04/10/2014	$	775,000	$	774,900
Total Short-term Investments
(cost $4,944,394)				4,944,407
TOTAL INVESTMENTS (100.05%)
(cost $298,184,152)				429,296,831
LIABILITIES, NET OF OTHER ASSETS (-0.05%)				(230,740	)
NET ASSETS (100.00%)			$	429,066,091

(a) Non-income producing security.

(b) In accordance with the Trust’s valuation procedures, State Farm Investment Management Corp. (“SFIMC”) determined the fair value for the security considering the facts and circumstances related to the particular security.

(c) At December 31, 2013, this security has been pledged to cover, in whole or in part, initial margin requirements for open futures contracts.

See accompanying notes to financial statements. 119

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

OPEN FUTURES CONTRACTS

Description	Contracts Purchased	Expiration	Notional Value		Market Value		Unrealized Gain (Loss)
Russell 2000 Mini Index	46	March 2014		$5,122,668	$	5,342,440	$	219,772

120 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Shares		Value
Common Stocks (97.82%)
Australia (7.33%)
AGL Energy Ltd.		10,517	$	141,141
ALS Ltd.		7,007		55,120
Alumina Ltd. (a)		46,649		46,443
Amcor Ltd.		22,831		215,070
AMP Ltd.		55,106		216,006
APA Group		15,276		81,840
Asciano Ltd.		18,010		92,627
ASX Ltd.		3,694		121,248
Aurizon Holdings Ltd.		37,900		165,144
Australia & New Zealand Banking Group Ltd.		52,158		1,501,012
Bank of Queensland Ltd.		6,257		67,936
Bendigo and Adelaide Bank Ltd.		7,310		76,693
BGP Holdings PLC (a) (b)		183,756		0
BHP Billiton Ltd.		61,203		2,076,084
Boral Ltd.		13,782		58,699
Brambles Ltd.		29,334		239,660
Caltex Australia Ltd.		2,519		45,097
CFS Retail Property Trust		40,983		71,175
Coca-Cola Amatil Ltd.		10,549		113,319
Cochlear Ltd.		1,045		54,977
Commonwealth Bank of Australia		30,586		2,124,737
Computershare Ltd.		9,303		94,530
Crown Resorts Ltd.		7,339		110,418
CSL Ltd.		9,203		566,669
Dexus Property Group		88,581		79,489
Echo Entertainment Group Ltd.		16,111		35,388
Federation Centres		28,374		59,284
Flight Centre Travel Group Ltd.		1,064		45,175
Fortescue Metals Group Ltd.		29,472		153,157
Goodman Group		32,540		137,430
GPT Group		33,165		100,684
Harvey Norman Holdings Ltd.		10,827		30,549
Iluka Resources Ltd.		7,836		60,382
Incitec Pivot Ltd.		31,491		75,357
Insurance Australia Group Ltd.		39,634		205,965
James Hardie Industries PLC		8,057		93,092
Leighton Holdings Ltd.		3,317		47,714
Lend Lease Corp. Ltd.		10,208		101,538
Macquarie Group Ltd.		5,387		264,409
Metcash Ltd.		16,100		45,427
Mirvac Group		69,814		104,726
National Australia Bank Ltd.		44,620		1,387,669
Newcrest Mining Ltd.		14,606		101,725
Orica Ltd.		6,823		145,361
Origin Energy Ltd.		20,772		260,961
Qantas Airways Ltd. (a)		21,256		20,783
QBE Insurance Group Ltd.		23,285		239,306
Ramsay Health Care Ltd.		2,424		93,632
REA Group Ltd.		1,046		35,267
Rio Tinto Ltd.		8,196		498,956
Santos Ltd.		18,298		239,029
Seek Ltd.		6,039		72,310
Sonic Healthcare Ltd.		7,081		104,829
SP Ausnet		28,427		31,601
Stockland		43,224		139,327

	Shares		Value
Common Stocks (Cont.)
Australia (Cont.)
Suncorp Group Ltd.		24,504	$	286,623
Sydney Airport		22,369		75,898
Tabcorp Holding Ltd.		13,007		42,159
Tatts Group Ltd.		27,358		75,727
Telstra Corp. Ltd.		83,652		392,138
Toll Holdings Ltd.		12,395		62,863
Transurban Group		26,704		163,093
Treasury Wine Estates Ltd.		12,793		55,058
Wesfarmers Ltd.		19,087		750,564
Westfield Group		39,731		357,951
Westfield Retail Trust		57,323		152,016
Westpac Banking Corp.		58,934		1,703,906
Woodside Petroleum Ltd.		12,748		442,787
Woolworths Ltd.		23,957		724,092
WorleyParsons Ltd.		3,949		58,533
				18,689,575
Austria (0.26%)
Andritz AG		1,337		83,854
Erste Group Bank AG		4,785		166,740
Immoeast Interim Shares (a) (b)		8,216		0
Immofinanz AG		17,968		83,252
Immofinanz AG Interim Shares (a) (b)		7,204		0
OMV AG		2,725		130,420
Raiffeisen Bank International AG		925		32,602
Telekom Austria AG		4,524		34,255
Vienna Insurance Group AG		730		36,379
VoestAlpine AG		2,100		100,912
				668,414
Belgium (1.16%)
Ageas		4,222		179,764
Anheuser-Busch InBev NV		15,254		1,621,295
Belgacom SA		2,887		85,410
Colruyt SA		1,360		75,923
Delhaize Group		1,880		111,729
Groupe Bruxelles Lambert SA		1,544		141,740
KBC GROEP NV		4,355		247,136
Solvay SA		1,132		179,089
Telenet Group Holding NV		1,033		61,640
UCB SA		2,019		150,376
Umicore SA		2,161		100,944
				2,955,046
Denmark (1.16%)
A P Moller-Maersk A/S Class A		10		103,084
A P Moller-Maersk A/S Class B		25		271,311
Carlsberg A/S Class B		2,103		232,686
Coloplast A/S Class B		2,115		140,018
Danske Bank A/S (a)		12,434		285,241
DSV A/S		3,326		109,052
Novo Nordisk A/S Class B		7,569		1,387,412
Novozymes A/S B Shares		4,414		186,320
TDC A/S		15,180		147,244
Tryg A/S		462		44,686

See accompanying notes to financial statements. 121

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SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Denmark (Cont.)
William Demant Holding A/S (a)		438	$	42,566
				2,949,620
Finland (0.90%)
Elisa OYJ		2,608		69,101
Fortum OYJ		8,330		190,573
Kone Corp. OYJ Class B		6,056		273,265
Metso OYJ		2,422		103,357
Neste Oil OYJ		2,575		50,905
Nokia OYJ (a)		71,342		571,202
Nokian Renkaat OYJ		2,041		97,908
Orion OYJ Class B		1,774		49,835
Pohjola Bank PLC		2,708		54,465
Sampo OYJ A Shares		7,919		389,140
Stora Enso OYJ R Shares		10,571		106,088
UPM-Kymmene OYJ		9,966		168,362
Wartsila OYJ Class B		3,358		165,243
				2,289,444
France (9.55%)
Accor SA		3,054		144,108
Aeroports de Paris (ADP)		540		61,287
Air Liquide SA		5,891		833,116
Alcatel-Lucent (a)		47,066		210,951
Alstom SA		4,151		151,186
Arkema		1,202		140,208
AtoS		1,127		102,002
AXA SA		34,246		952,138
BNP Paribas SA		18,956		1,477,305
Bouygues SA		3,542		133,610
Bureau Veritas SA		4,176		122,051
Cap Gemini SA		2,704		182,758
Carrefour SA		11,722		464,589
Casino Guichard Perrachon SA		1,043		120,198
CGG (a)		2,895		50,102
Christian Dior SA		1,008		190,464
Cie Generale des Etablissements Michelin Class B		3,512		373,230
CNP Assurances		3,047		62,457
Compagnie de Saint-Gobain		7,956		437,529
Credit Agricole SA (a)		18,649		238,724
Danone		10,772		775,328
Dassault Systemes SA		1,160		143,990
Edenred		3,818		127,791
Electricite de France		4,487		158,547
Essilor International SA		3,928		417,602
Eurazeo SA		656		51,422
European Aeronautic Defence and Space Co. NV		11,242		863,136
Eutelsat Communications		2,857		89,082
Fonciere des Regions		601		51,881
GDF Suez		25,046		589,021
Gecina SA		421		55,618
Groupe Eurotunnel SA		10,072		105,860
ICADE		665		61,907
Iliad SA		498		102,011

	Shares		Value
Common Stocks (Cont.)
France (Cont.)
Imerys SA		652	$	56,697
JC Decaux SA		1,333		54,959
Kering		1,415		299,097
Klepierre		2,010		93,142
Lafarge SA		3,531		264,593
Lagardere SCA		2,130		79,175
Legrand SA		4,975		274,175
L’Oreal SA		4,560		801,086
LVMH Moet Hennessy Louis Vuitton SA		4,784		872,686
Natixis		17,894		105,212
Orange		35,117		434,794
Pernod Ricard SA		3,987		454,206
Publicis Groupe		3,420		312,922
Remy Cointreau SA		484		40,609
Renault SA		3,618		290,922
Rexel SA		3,956		103,811
Safran SA		5,252		364,943
Sanofi		22,672		2,405,362
Schneider Electric SA		10,154		885,625
SCOR SE		3,043		111,208
SES		5,713		184,931
Societe BIC SA		554		67,876
Societe Generale		13,682		794,678
Sodexo		1,861		188,531
STMicroelectronics NV		12,439		99,936
Suez Environnement Co.		5,216		93,463
Technip SA		1,917		184,236
Thales SA		1,647		106,038
Total SA		40,654		2,490,460
Valeo SA		1,461		161,656
Vallourec SA		2,037		110,971
Veolia Environnement		6,742		109,955
Vinci SA		9,197		603,768
Vivendi		22,895		603,318
Wendel		630		91,826
Zodiac Aerospace		632		111,941
				24,350,017
Germany (8.70%)
Adidas AG		3,958		504,426
Allianz SE Reg.		8,673		1,555,263
Axel Springer SE		771		49,533
BASF SE		17,450		1,860,221
Bayer AG		15,701		2,202,105
Bayerische Motoren Werke (BMW) AG		6,237		731,208
Beiersdorf AG		1,985		201,093
Brenntag AG		989		183,336
Celesio AG		1,666		52,714
Commerzbank Ag (a)		18,068		291,065
Continental AG		2,097		459,844
Daimler AG Registered Shares		18,288		1,582,488
Deutsche Bank AG Reg.		19,227		917,174
Deutsche Boerse AG		3,621		299,881
Deutsche Lufthansa AG Reg. (a)		4,325		91,747
Deutsche Post AG		17,369		633,205

122 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Germany (Cont.)
Deutsche Telekom AG		54,874	$	938,342
Deutsche Wohnen AG		5,608		108,279
E.ON SE		34,506		636,808
Fraport AG		731		54,697
Fresenius Medical Care AG & Co. KGaA		4,071		289,712
Fresenius SE & Co. KGaA		2,363		362,787
GEA Group AG		3,557		169,310
Hannover Rueck SE		1,095		93,969
HeidelbergCement AG		2,683		203,559
Henkel AG & Co. KGaA		2,455		255,462
Hochtief AG		534		45,591
Hugo Boss AG		617		87,851
Infineon Technologies AG		20,159		215,206
K+S AG Reg.		3,214		98,931
Lanxess AG		1,532		102,165
Linde AG		3,553		743,199
MAN AG		655		80,422
Merck KGaA		1,273		228,102
Metro AG		2,423		117,333
Muenchener Rueckversicherungs Gesellschaft AG Reg.		3,387		746,218
Osram Licht AG (a)		1,631		91,994
ProsiebenSat.1 Media AG Reg.		3,597		178,142
QIAGEN NV (a)		4,488		104,559
RTL Group SA		744		96,139
RWE AG		9,338		341,775
SAP AG		17,525		1,502,240
Siemens AG Reg.		15,052		2,056,001
Sky Deutschland AG (a)		8,514		93,702
Suedzucker AG		1,592		42,970
Telefonica Deutschland Holding AG		5,205		42,963
ThyssenKrupp AG (a)		8,588		208,999
United Internet AG Reg.		1,933		82,223
Volkswagen AG		549		148,710
				22,183,663
Hong Kong (2.81%)
AIA Group Ltd.		229,643		1,152,021
ASM Pacific Technology Ltd.		4,692		39,209
Bank of East Asia Ltd.		23,274		98,597
BOC Hong Kong Holdings Ltd.		69,000		221,122
Cathay Pacific Airways Ltd.		23,494		49,810
Cheung Kong Holdings Ltd.		26,191		413,757
Cheung Kong Infrastructure Holdings Ltd.		11,611		73,521
CLP Holdings Ltd.		33,505		264,867
First Pacific Company Ltd.		44,353		50,449
Galaxy Entertainment Group Ltd. (a)		39,880		357,692
Hang Lung Properties Ltd.		42,000		133,242
Hang Seng Bank Ltd.		14,343		232,690
Henderson Land Development Co. Ltd.		20,881		119,158
HKT Trust and HKT Ltd.		45,000		44,511
Hong Kong & China Gas Co. Ltd.		112,082		257,573
Hong Kong Exchanges & Clearing Ltd.		20,904		348,297

	Shares		Value
Common Stocks (Cont.)
Hong Kong (Cont.)
Hopewell Holdings Ltd.		10,500	$	35,612
Hutchison Whampoa Ltd.		40,700		553,738
Hysan Development Co. Ltd.		11,916		51,326
Kerry Properties Ltd.		12,328		42,766
Li & Fung Ltd.		109,240		141,158
Link REIT, The		43,762		212,763
MGM China Holdings Ltd.		17,454		74,617
MTR Corporation Ltd.		26,688		101,014
New World Development Company Ltd.		72,083		91,285
NWS Holdings Ltd.		28,186		42,964
PCCW Ltd.		81,000		36,247
Power Assets Holdings Ltd.		25,982		206,736
Sands China Ltd.		46,453		381,003
Shangri-La Asia Ltd.		30,974		60,476
Sino Land Co. Ltd.		56,961		77,865
SJM Holdings Ltd.		38,022		126,997
Sun Hung Kai Properties Ltd.		30,782		390,615
Swire Pacific Ltd. Class A		12,821		150,708
Swire Properties Ltd.		20,800		52,575
Wharf Holdings Ltd.		28,700		219,109
Wheelock and Co. Ltd.		18,104		83,232
Wynn Macau Ltd.		29,936		135,892
Yue Yuen Industrial Holdings Ltd.		14,000		46,761
				7,171,975
Ireland (0.28%)
Bank of Ireland (a)		429,710		148,970
CRH PLC (Dublin)		13,997		352,379
Kerry Group PLC Class A (Dublin)		2,804		194,802
Ryanair Holdings PLC (a)		3,431		29,571
				725,722
Israel (0.44%)
Bank Hapoalim B.M.		20,381		114,174
Bank Leumi Le-Israel (a)		25,021		102,188
Bezeq The Israeli Telecommunication Corporation Ltd.		37,816		64,098
Delek Group Ltd.		78		29,789
Israel Chemicals Ltd.		8,329		69,400
Israel Corporation Ltd., The (a)		59		31,046
Mizrahi Tefahot Bank Ltd.		2,374		31,070
NICE Systems Ltd.		1,126		46,117
Teva Pharmaceutical Industries Ltd.		16,124		644,589
				1,132,471
Italy (2.19%)
Assicurazioni Generali SpA		22,006		517,679
Atlantia SpA		6,572		147,460
Banca Monte Dei Paschi di Siena SpA (a)		132,327		31,930
CNH Industrial NV (a)		17,761		202,434
Enel Green Power SpA		33,575		84,572
Enel SpA		124,451		543,412
Eni SpA		48,478		1,166,428
EXOR SpA		1,835		72,981

See accompanying notes to financial statements. 123

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Italy (Cont.)
Fiat SpA (a)		16,868	$	137,955
Finmeccanica SpA (a)		7,705		58,352
Intesa Sanpaolo		220,187		543,423
Luxottica Group SpA		3,120		167,180
Mediobanca SpA (a)		9,887		86,506
Pirelli & C. SpA		4,694		81,236
Prysmian SpA		3,927		101,078
Saipem SpA		4,935		105,638
Snam SpA		37,884		211,908
Telecom Italia RNC SpA		111,414		87,212
Telecom Italia SpA		188,248		186,719
Tenaris SA		8,786		191,940
Terna - Rete Elettrica Nationale SpA		27,791		138,859
UBI Banca - Unione di Banche Italiane ScpA		16,217		110,121
UniCredit SpA		82,078		607,481
				5,582,504
Japan (20.58%)
ABC-Mart Inc.		500		21,817
ACOM Co. Ltd. (a)		6,600		22,374
Advantest Corp.		2,800		34,751
Aeon Co. Ltd.		11,400		154,259
Aeon Credit Service Co. Ltd.		1,400		37,489
Aeon Mall Co. Ltd.		2,100		58,846
Air Water Inc.		2,769		37,442
Aisin Seiki Co. Ltd.		3,800		154,078
Ajinomoto Co. Inc.		12,000		173,431
Alfresa Holdings Corp.		700		34,698
All Nippon Airways Co. Ltd.		21,000		41,876
Amada Co. Ltd.		7,000		61,618
Aozora Bank Ltd.		19,000		53,765
Asahi Glass Co. Ltd.		19,000		117,994
Asahi Group Holdings Ltd.		7,300		205,462
Asahi Kasei Corp.		24,000		187,788
ASICS Corp.		3,000		51,135
Astellas Pharma Inc.		8,298		490,899
Bank of Kyoto Ltd., The		6,000		50,024
Bank of Yokohama Ltd., The		23,000		127,984
Benesse Holdings Inc.		1,300		52,156
Bridgestone Corp.		12,300		464,856
Brother Industries Ltd.		4,300		58,675
CALBEE Inc.		1,200		29,114
Canon Inc.		21,400		676,688
Casio Computer Co. Ltd.		4,800		58,661
Central Japan Railway Co.		2,800		329,162
Chiba Bank Ltd., The		14,000		94,255
Chiyoda Corp.		3,077		44,587
Chubu Electric Power Co. Inc.		12,700		163,890
Chugai Pharmaceutical Co. Ltd.		4,300		94,934
Chugoku Bank Ltd., The		3,000		38,059
Chugoku Electric Power Company Inc., The		5,500		85,443
Citizen Holdings Co. Ltd.		4,800		40,384
Coca-Cola West Co. Ltd.		1,299		27,470
Credit Saison Co. Ltd.		3,100		81,430

	Shares		Value
Common Stocks (Cont.)
Japan (Cont.)
Dai Nippon Printing Co. Ltd.		11,000	$	116,570
Daicel Chemical Industries Ltd.		5,000		40,642
Daido Steel Co. Ltd.		5,000		24,784
Daihatsu Motor Co. Ltd.		4,000		67,686
Dai-ichi Life Insurance Company Ltd.		16,200		270,282
Daiichi Sankyo Co. Ltd.		12,540		228,985
Daikin Industries Ltd.		4,400		273,668
Dainippon Sumitomo Pharma Co. Ltd.		3,000		46,862
Daito Trust Construction Co. Ltd.		1,400		130,681
Daiwa House Industry Co. Ltd.		12,000		231,887
Daiwa Securities Group Inc.		31,000		309,087
DeNA Co. Ltd.		1,900		39,909
Denso Corp.		9,300		490,124
Dentsu Inc.		4,216		172,147
Don Quijote Holdings Co. Ltd.		1,000		60,488
East Japan Railway Co.		6,413		510,312
Eisai Co. Ltd.		4,700		181,868
Electric Power Development Co. Ltd.		2,100		61,120
FamilyMart Co. Ltd.		1,100		50,190
Fanuc Corp.		3,700		676,337
Fast Retailing Co. Ltd.		1,000		412,117
Fuji Electric Co. Ltd.		10,000		46,719
Fuji Heavy Industries Ltd.		11,000		314,927
FUJIFILM Holdings Corp.		8,700		246,270
Fujitsu Ltd. (a)		35,000		180,800
Fukuoka Financial Group Inc.		15,000		65,663
Gree Inc.		1,779		17,552
GungHo Online Entertainment Inc. (a)		6,000		43,130
Gunma Bank Ltd.		7,000		39,018
Hachijuni Bank Ltd., The		7,549		43,942
Hakuhodo DY Holdings Inc.		4,000		30,956
Hamamatsu Photonics KK		1,293		51,629
Hankyu Hanshin Holdings Inc.		21,000		113,266
Hino Motors Ltd.		5,000		78,435
Hirose Electric Co. Ltd.		600		85,348
Hiroshima Bank Ltd., The		9,000		37,176
Hisamitsu Pharmaceutical Co. Inc.		1,200		60,393
Hitachi Chemical Co. Ltd.		1,900		30,256
Hitachi Construction Machinery Co. Ltd.		2,100		44,768
Hitachi High-Technologies Corp.		1,200		30,094
Hitachi Ltd.		91,000		687,836
Hitachi Metals Ltd.		4,000		56,443
Hokkaido Electric Power Co. Inc. (a)		3,300		37,885
Hokuhoku Financial Group Inc.		22,000		43,870
Hokuriku Electric Power Co.		3,100		42,006
Honda Motor Co. Ltd.		31,000		1,274,618
Hoya Corp.		8,100		224,748
Hulic Company Ltd.		5,000		73,830
Ibiden Co. Ltd.		2,300		42,938
Idemitsu Kosan Co. Ltd.		1,600		36,357
IHI Corp.		25,000		107,777
Iida Group Holdings Co. Ltd. (a)		2,400		47,904
INPEX Corp.		16,400		209,925
Isetan Mitsukoshi Holdings Ltd.		6,840		97,102
Isuzu Motors Ltd.		22,000		136,625

124 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Japan (Cont.)
Itochu Corp.		28,500	$	351,548
Itochu Techno-Solutions Corp.		500		20,250
Iyo Bank Ltd., The		5,000		48,951
J. Front Retailing Co. Ltd.		8,600		65,004
Japan Airlines Co. Ltd.		1,100		54,211
Japan Exchange Group Inc.		4,500		127,723
Japan Petroleum Exploration Co.		500		18,920
Japan Prime Realty Investment Corp.		15		48,001
Japan Real Estate Investment Corp.		22		117,824
Japan Retail Fund Investment Corp.		47		95,598
Japan Steel Works Ltd., The		6,000		33,501
Japan Tobacco Inc.		20,800		675,491
JFE Holdings Inc.		9,200		218,578
JGC Corp.		4,000		156,680
Joyo Bank Ltd., The		12,000		61,191
JSR Corp.		3,300		63,800
JTEKT Corp.		4,300		73,089
JX Holdings Inc.		42,300		217,304
Kajima Corp.		15,000		56,262
Kakaku.com Inc.		2,900		50,862
Kamigumi Co. Ltd.		4,000		36,616
Kaneka Corp.		5,000		32,760
Kansai Electric Power Company Inc., The (a)		13,100		150,393
Kansai Paint Co. Ltd.		4,000		59,064
Kao Corp.		9,800		308,024
Kawasaki Heavy Industries Ltd.		27,000		113,066
KDDI Corp.		10,300		632,808
Keikyu Corp.		9,000		74,096
Keio Corp.		11,000		73,222
Keisei Electric Railway Co. Ltd.		5,000		45,912
Keyence Corp.		870		371,760
Kikkoman Corp.		3,000		56,576
Kinden Corp.		3,000		31,336
Kintetsu Corp.		35,000		122,638
Kirin Holdings Co. Ltd.		17,000		244,241
Kobe Steel Ltd. (a)		48,000		82,043
Koito Manufacturing Company Ltd.		1,924		36,668
Komatsu Ltd.		17,600		357,147
Konami Corp.		2,000		46,130
Konica Minolta Holdings Inc.		9,000		89,650
Kubota Corp.		20,000		330,263
Kuraray Co. Ltd.		6,600		78,528
Kurita Water Industries Ltd.		2,200		45,584
Kyocera Corp.		6,200		309,087
Kyowa Hakko Kirin Co. Ltd.		4,000		44,022
Kyushu Electric Power Co. Inc. (a)		8,300		105,770
Lawson Inc.		1,300		97,151
LIXIL Group Corp.		5,100		139,619
M3 Inc.		16		40,034
Mabuchi Motor Co. Ltd.		500		29,674
Makita Corp.		2,100		110,075
Marubeni Corp.		31,000		222,543
Marui Group Co. Ltd.		4,400		44,623
Maruichi Steel Tube Ltd.		1,000		25,221
Mazda Motor Corp. (a)		51,000		263,451

	Shares		Value
Common Stocks (Cont.)
Japan (Cont.)
McDonald’s Holdings Company Ltd. (Japan)		1,300	$	33,170
MEDIPAL HOLDINGS CORP.		2,900		38,222
MEIJI Holdings Company Ltd.		1,068		68,556
Miraca Holdings Inc.		1,090		51,338
Mitsubishi Chemical Holdings Corp.		25,000		115,374
Mitsubishi Corp.		27,100		519,046
Mitsubishi Electric Corp.		37,000		463,774
Mitsubishi Estate Company Ltd.		23,000		686,877
Mitsubishi Gas Chemical Co. Inc.		7,000		51,448
Mitsubishi Heavy Industries Ltd.		57,000		352,360
Mitsubishi Logistics Corp.		2,000		31,545
Mitsubishi Materials Corp.		21,000		77,372
Mitsubishi Motors Corp. (a)		8,300		88,982
Mitsubishi Tanabe Pharma Corp.		4,300		59,859
Mitsubishi UFJ Financial Group Inc.		242,500		1,598,091
Mitsubishi UFJ Lease & Finance Co. Ltd.		10,500		64,310
Mitsui & Co. Ltd.		32,900		457,682
Mitsui Chemicals Inc.		15,000		36,179
Mitsui Fudosan Co. Ltd.		16,000		575,064
Mitsui OSK Lines Ltd.		21,000		94,521
Mitsui Sumitomo Insurance Group Holdings Inc.		9,500		254,572
Mizuho Financial Group Inc.		438,229		948,782
Murata Manufacturing Co. Ltd.		3,800		337,024
Nabtesco Corp.		2,045		47,091
Namco Bandai Holdings Inc.		3,200		70,922
NEC Corp.		47,000		105,773
Nexon Co. Ltd.		2,000		18,460
NGK Insulators Ltd.		5,000		94,863
NGK Spark Plug Co. Ltd.		3,000		70,933
NHK Spring Co. Ltd.		3,000		33,786
Nidec Corp.		1,900		185,832
Nikon Corp.		6,300		120,185
Nintendo Co. Ltd.		2,000		266,072
Nippon Building Fund Inc.		26		151,097
Nippon Electric Glass Co. Ltd.		7,500		39,313
Nippon Express Co. Ltd.		16,000		77,334
Nippon Meat Packers Inc.		3,000		51,448
Nippon Paint Co. Ltd.		3,000		49,824
Nippon Prologis REIT Inc.		5		47,764
Nippon Steel Corp.		146,000		488,007
Nippon Telegraph & Telephone Corp.		7,113		382,296
Nippon Yusen KK		33,000		105,289
Nishi-Nippon City Bank Ltd., The		12,000		32,248
Nissan Motor Co. Ltd.		47,000		394,530
Nisshin Seifun Group Inc.		3,600		37,159
Nissin Foods Holdings Co. Ltd.		1,100		46,377
Nitori Holdings Co. Ltd.		650		61,537
Nitto Denko Corp.		3,100		130,553
NKSJ Holdings Inc.		6,200		172,147
NOK Corp.		2,000		32,665
Nomura Holdings Inc.		68,600		526,991
Nomura Real Estate Holdings Inc.		2,300		51,718
Nomura Real Estate Office Fund Inc.		7		32,504

See accompanying notes to financial statements. 125

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Japan (Cont.)
Nomura Research Institute Ltd.		2,000	$	62,957
NSK Ltd.		9,000		111,784
NTT Data Corp.		2,300		84,740
NTT DoCoMo Inc.		29,300		479,940
NTT Urban Development Corp.		2,300		26,405
Obayashi Corp.		12,000		68,256
Odakyu Electric Railway Co. Ltd.		12,000		108,366
Oji Paper Co. Ltd.		16,000		81,892
Olympus Corp. (a)		4,400		139,132
Omron Corp.		3,800		167,610
Ono Pharmaceutical Co. Ltd.		1,500		131,184
Oracle Corp. Japan		700		25,558
Oriental Land Co. Ltd.		1,000		144,051
Orix Corp.		24,400		427,944
Osaka Gas Co. Ltd.		35,000		137,261
OTSUKA Corp.		300		38,202
Otsuka Holdings Co. Ltd.		6,831		197,192
Panasonic Corp.		41,800		485,834
Park24 Co. Ltd.		1,900		35,777
Rakuten Inc.		13,600		201,979
Resona Holdings Inc.		35,495		180,660
Ricoh Co. Ltd.		13,000		138,012
RINNAI Corp.		700		54,439
Rohm Co. Ltd.		1,800		87,513
Sankyo Co. Ltd.		1,000		46,055
Sanrio Co. Ltd.		800		33,615
Santen Pharmaceutical Co. Ltd.		1,400		65,207
SBI Holdings Inc.		4,000		60,393
Secom Co. Ltd.		4,100		246,833
Sega Sammy Holdings Inc.		3,426		87,090
Sekisui Chemical Co. Ltd.		8,000		97,996
Sekisui House Ltd.		10,000		139,588
Seven & I Holdings Co. Ltd.		14,280		566,807
Seven Bank Ltd.		11,000		42,930
Sharp Corp. (a)		27,000		85,633
Shikoku Electric Power Co. Inc. (a)		3,500		52,345
Shimadzu Corp.		5,000		43,443
Shimamura Co. Ltd.		400		37,451
Shimano Inc.		1,500		128,620
Shimizu Corp.		11,000		55,465
Shin-Etsu Chemical Co. Ltd.		7,700		448,941
Shinsei Bank Ltd.		31,000		75,653
Shionogi & Co. Ltd.		5,700		123,407
Shiseido Co. Ltd.		6,700		107,584
Shizuoka Bank Ltd., The		11,000		117,197
Showa Denko KK		28,000		39,616
Showa Shell Sekiyu KK		3,400		34,481
SMC Corp.		1,000		251,638
Softbank Corp.		18,200		1,589,972
Sojitz Corp.		22,100		39,243
Sony Corp.		19,000		329,446
Sony Financial Holdings Inc.		3,200		58,160
Stanley Electric Co. Ltd.		2,800		64,024
SUMCO Corp.		2,300		20,268
Sumitomo Chemical Co. Ltd.		30,000		117,368
Sumitomo Corp.		22,100		277,221

	Shares		Value
Common Stocks (Cont.)
Japan (Cont.)
Sumitomo Electric Industries Ltd.		14,300	$	238,175
Sumitomo Heavy Industries Ltd.		10,000		45,960
Sumitomo Metal Mining Co. Ltd.		10,000		130,757
Sumitomo Mitsui Financial Group Inc.		24,189		1,244,938
Sumitomo Mitsui Trust Holdings Inc.		62,000		326,161
Sumitomo Realty & Development Co. Ltd.		7,000		347,640
Sumitomo Rubber Industries Ltd.		3,100		43,979
Suntory Beverage & Food Ltd.		2,300		73,274
Suruga Bank Ltd.		3,000		53,727
Suzuken Co. Ltd.		1,280		41,386
Suzuki Motor Corp.		6,898		185,239
Sysmex Corp.		1,400		82,556
T&D Holdings Inc.		10,700		149,257
TAIHEIYO CEMENT CORP.		22,000		84,398
Taisei Corp.		19,000		86,241
Taisho Pharmaceutical Holdings Co. Ltd.		600		41,193
Taiyo Nippon Sanso Corp.		5,000		35,514
Takashimaya Co. Ltd.		5,000		49,710
Takeda Pharmaceutical Company Ltd.		15,100		691,838
TDK Corp.		2,300		110,075
Teijin Ltd.		18,000		39,996
Terumo Corp.		2,800		134,802
THK Co. Ltd.		2,200		54,817
Tobu Railway Co. Ltd.		19,000		92,014
Toho Co. Ltd.		2,200		48,320
Toho Gas Co. Ltd.		8,000		38,895
Tohoku Electric Power Co. Inc. (a)		8,400		94,361
Tokio Marine Holdings Inc.		13,000		433,909
Tokyo Electric Power Company Inc. (a)		26,900		132,061
Tokyo Electron Ltd.		3,200		175,026
Tokyo Gas Co. Ltd.		46,000		226,265
Tokyo Tatemono Co. Ltd.		8,000		88,729
Tokyu Corp.		23,000		148,732
Tokyu Fudosan Holdings Corp. (a)		10,200		95,888
TonenGeneral Sekiyu KK		5,000		45,817
Toppan Printing Co. Ltd.		10,000		79,859
Toray Industries Inc.		28,000		193,562
Toshiba Corp.		78,000		327,376
Toto Ltd.		5,000		79,147
Toyo Seikan Kaisha Ltd.		3,400		72,933
Toyo Suisan Kaisha Ltd.		2,000		60,013
Toyoda Gosei Co. Ltd.		1,200		27,883
Toyota Boshoku Corp.		1,400		17,455
Toyota Industries Corp.		3,000		135,172
Toyota Motor Corp.		52,400		3,194,454
Toyota Tsusho Corp.		3,900		96,398
Trend Micro Inc. (a)		2,000		69,889
Tsumura & Co.		1,100		29,122
UBE Industries Ltd.		19,000		40,594
Unicharm Corp.		2,100		119,647
United Urban Investment Corp.		43		61,779
USS Co. Ltd.		4,200		57,590
West Japan Railway Co.		3,200		138,562

126 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Japan (Cont.)
Yahoo Japan Corp.		27,200	$	151,097
Yakult Honsha Co. Ltd.		1,700		85,718
Yamada Denki Co. Ltd.		18,400		60,104
Yamaguchi Financial Group Inc.		4,000		36,996
Yamaha Corp.		2,900		45,960
Yamaha Motor Co. Ltd.		5,400		80,864
Yamato Holdings Co. Ltd.		6,900		139,297
Yamato Kogyo Co. Ltd.		800		25,525
Yamazaki Baking Co. Ltd.		2,000		20,492
Yaskawa Electric Corp.		4,000		63,166
Yokogawa Electric Corp.		4,100		62,876
Yokohama Rubber Company Ltd., The		4,000		39,237
				52,491,690
Netherlands (3.01%)
Aegon NV		33,784		318,923
Akzo Nobel NV		4,609		357,229
ArcelorMittal		18,928		337,729
ASML Holding NV		6,851		641,271
Corio NV		1,269		56,868
Delta Lloyd NV		3,593		89,170
Fugro NV		1,353		80,623
Gemalto NV		1,462		160,922
Heineken Holding NV		1,893		119,754
Heineken NV		4,300		290,333
ING Groep NV (a)		73,025		1,014,651
Koninklijke Ahold NV		19,143		343,672
Koninklijke Boskalis Westminster NV CVA		1,580		83,477
Koninklijke DSM NV		2,961		232,838
Koninklijke KPN NV (a)		61,916		199,572
Koninklijke Philips NV		18,584		681,206
Koninklijke Vopak NV		1,299		75,985
OCI NV (a)		1,710		77,007
Randstad Holding NV		2,386		154,766
Reed Elsevier NV		13,530		286,643
TNT Express NV		6,809		63,209
Unibail-Rodamco SE		1,852		474,527
Unilever NV CVA		30,954		1,246,629
Wolters Kluwer - CVA		5,648		161,188
Ziggo NV		2,836		129,529
				7,677,721
New Zealand (0.11%)
Auckland International Airport Ltd.		18,043		52,380
Contact Energy Ltd.		6,866		28,967
Fletcher Building Ltd.		12,554		87,861
Ryman Healthcare Ltd.		7,066		45,617
Telecom Corp. of New Zealand Ltd.		36,499		69,189
				284,014
Norway (0.80%)
Aker Solutions ASA		3,204		57,262
DnB NOR ASA		18,208		325,716
Gjensidige Forsikring ASA		3,900		74,395

	Shares		Value
Common Stocks (Cont.)
Norway (Cont.)
Norsk Hydro ASA		27,240	$	121,575
Orkla ASA		14,531		113,367
Seadrill Ltd.		7,077		288,900
Statoil ASA		20,976		508,379
Subsea 7 SA		4,998		95,670
Telenor ASA		13,126		312,931
Yara International ASA		3,486		150,008
				2,048,203
Portugal (0.17%)
Banco Espirito Santo SA Reg. (a)		33,959		48,539
Energias de Portugal SA		37,928		139,314
Galp Energia SGPS SA B Shares		6,467		106,004
Jeronimo Martins SGPS SA		4,716		92,224
Portugal Telecom SGPS SA		12,356		53,714
				439,795
Singapore (1.45%)
Ascendas Real Estate Investment Trust		40,000		69,733
CapitaCommercial Trust		35,000		40,216
Capitaland Ltd.		47,000		112,849
Capitamall Trust		48,000		72,459
CapitaMalls Asia Ltd.		26,807		41,635
City Developments Ltd.		8,000		60,858
Comfortdelgro Corp. Ltd.		36,000		57,340
DBS Group Holdings Ltd.		32,791		444,333
Genting Singapore PLC		114,000		135,054
Global Logistic Properties Ltd.		57,726		132,199
Golden Agri-Resources Ltd.		141,330		61,036
Hutchison Port Holdings Trust		100,000		67,500
Jardine Cycle & Carriage Ltd.		1,863		53,073
Keppel Corp. Ltd.		27,400		242,962
Keppel Land Ltd.		14,101		37,321
Noble Group Ltd.		82,800		70,206
Olam International Ltd.		27,798		33,813
Oversea-Chinese Banking Corporation Ltd.		48,797		394,413
Sembcorp Industries Ltd.		18,220		79,264
Sembcorp Marine Ltd.		15,800		55,715
Singapore Airlines Ltd.		10,267		84,694
Singapore Exchange Ltd.		16,000		92,048
Singapore Press Holdings Ltd.		30,000		97,944
Singapore Technologies Engineering Ltd.		29,000		91,002
Singapore Telecommunications Ltd.		153,450		445,047
StarHub Ltd.		12,000		40,794
United Overseas Bank Ltd.		24,881		418,774
UOL Group Ltd.		8,639		42,375
Wilmar International Ltd.		36,000		97,563
Yangzijiang Shipbuilding Holdings Ltd.		36,548		34,319
				3,706,539
Spain (3.31%)
Abertis Infraestructuras SA		7,249		161,057

See accompanying notes to financial statements. 127

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SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
Spain (Cont.)
ACS Actividades de Construccion y Servicios SA		2,902	$	99,887
Amadeus IT Holding SA A Shares		7,222		309,038
Banco Bilbao Vizcaya Argentaria SA		110,679		1,362,432
Banco de Sabadell SA		62,145		162,094
Banco Popular Espanol SA (a)		24,423		147,330
Banco Santander SA		214,782		1,922,363
Bankia SA (a)		75,210		127,677
CaixaBank SA		33,259		173,318
Distribuidora Internacional de Alimentacion SA		11,086		99,132
Enagas SA		3,813		99,639
Ferrovial SA		7,510		145,313
Gas Natural SDG SA		6,799		174,861
Grifols SA		2,490		119,087
Grifols SA Class B		383		13,639
Iberdrola SA		89,270		569,218
Industria de Diseno Textil SA		4,115		678,188
International Consolidated Airlines Group SA (a)		17,929		119,354
Mapfre SA		21,930		93,916
Red Electrica Corporacion SA		2,041		136,185
Repsol SA		16,092		405,564
Repsol SA Rights (a)		16,092		10,980
Telefonica SA		77,894		1,268,224
Zardoya Otis SA		2,973		53,783
				8,452,279
Sweden (3.19%)
Alfa Laval AB		5,972		153,203
Assa Abloy AB Class B		6,271		331,302
Atlas Copco AB Class A		12,761		353,753
Atlas Copco AB Class B		7,269		184,442
Boliden AB		5,049		77,283
Electrolux AB Series B		4,525		118,545
Elekta AB B Shares		7,055		107,879
Getinge AB B Shares		3,687		126,113
Hennes & Mauritz AB (H&M) B Shares		18,007		829,260
Hexagon AB B Shares		4,496		142,111
Husqvarna AB B Shares		8,301		49,972
Industrivarden AB C Shares		2,307		43,867
Investment AB Kinnevik B Shares		4,187		193,927
Investor AB B Shares		8,497		292,355
Lundin Petroleum AB (a)		4,181		81,515
Millicom International Cellular SA SDR		1,251		124,578
Nordea Bank AB		58,149		783,384
Sandvik AB		20,094		283,360
Scania AB Class B		5,897		115,431
Securitas AB Class B		5,922		62,932
Skandinaviska Enskilda Banken AB Class A		29,356		387,041
Skanska AB Class B		7,322		149,585
SKF AB B Shares		7,821		205,136
Svenska Cellulosa AB Class B		11,025		339,397
Svenska Handelsbanken AB A Shares		9,405		462,072
Swedbank AB - A Shares		17,168		483,128

	Shares		Value
Common Stocks (Cont.)
Sweden (Cont.)
Swedish Match AB		3,776	$	121,349
Tele2 AB B Shares		5,918		67,030
Telefonaktiebolaget LM Ericsson B Shares		57,545		702,330
TeliaSonera AB		45,878		381,969
Volvo AB B Shares		28,614		375,701
				8,129,950
Switzerland (8.77%)
ABB Ltd. Reg.		41,949		1,104,156
Actelion Ltd. Reg.		1,940		163,869
Adecco SA Reg.		2,594		205,298
Aryzta AG		1,654		126,824
Baloise Holding AG Reg.		894		113,848
Barry Callebaut AG Reg.		42		52,638
Compagnie Financiere Richemont SA Reg.		9,962		991,677
Credit Suisse Group AG Reg.		28,877		882,771
Ems-Chemie Holding AG Reg		155		55,081
Geberit AG Reg.		739		224,090
Givaudan SA Reg.		159		227,079
Holcim Ltd. Reg.		4,335		324,378
Julius Baer Group Ltd.		4,231		203,190
Kuehne & Nagel International AG Reg.		1,002		131,533
Lindt & Spruengli AG		16		72,122
Lindt & Spruengli AG Reg.		2		107,841
Lonza Group AG Reg.		1,000		94,838
Nestle SA Reg.		61,137		4,475,361
Novartis AG		43,589		3,479,106
Pargesa Holding SA		503		40,542
Partners Group Holding AG		348		92,808
Roche Holding AG		13,326		3,722,705
Schindler Holding AG		898		132,176
Schindler Holding AG Reg.		401		59,158
SGS SA Reg		102		234,633
Sika AG		40		142,189
Sonova Holding AG Reg.		994		133,714
Sulzer AG Reg.		461		74,366
Swatch Group AG Reg., The		842		94,770
Swatch Group AG, The		579		382,625
Swiss Life Holding AG Reg.		586		121,660
Swiss Prime Site AG Reg.		1,098		84,992
Swiss Re AG		6,744		620,307
Swisscom AG		437		230,686
Syngenta AG Reg.		1,758		700,007
Transocean Ltd.		6,874		334,742
UBS AG Reg.		69,386		1,316,082
Zurich Insurance Group AG		2,812		814,867
				22,368,729
United Kingdom (21.60%)
3i Group PLC		18,448		117,644
Aberdeen Asset Management PLC		17,829		147,620
Admiral Group PLC		3,629		78,724
Aggreko PLC		5,214		147,557

128 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
United Kingdom (Cont.)
AMEC PLC		5,496	$	99,020
Anglo American PLC		26,350		575,972
Antofagasta PLC		7,341		100,168
ARM Holdings PLC		26,531		482,835
Associated British Foods PLC		6,686		270,703
AstraZeneca PLC		23,812		1,409,478
Aviva PLC		55,512		413,387
Babcock International Group PLC		6,923		155,339
BAE Systems PLC		61,190		440,776
Barclays PLC Sponsored ADR		290,891		1,309,986
BG Group PLC		64,787		1,392,010
BHP Billiton PLC		39,971		1,237,091
BP PLC		357,431		2,888,709
British American Tobacco PLC		36,209		1,941,514
British Land Co. PLC		17,756		184,945
British Sky Broadcasting Group PLC		19,341		270,314
BT Group PLC		150,651		946,491
Bunzl PLC		6,336		152,135
Burberry Group PLC		8,296		208,264
Capita PLC		12,560		215,891
Carnival PLC		3,381		140,025
Centrica PLC		97,261		560,003
Cobham PLC		20,495		93,162
Compass Group PLC		34,125		547,010
Croda International PLC		2,583		105,094
Diageo PLC		47,685		1,579,279
Direct Line Insurance Group PLC		22,127		91,456
easyJet PLC		2,904		73,864
Experian PLC		19,053		351,476
Fresnillo PLC		3,335		41,171
G4S PLC		29,967		130,263
GKN PLC		30,985		191,539
GlaxoSmithKline PLC		92,790		2,476,160
Glencore Xstrata PLC		200,260		1,036,977
Hammerson PLC		13,360		111,060
Hargreaves Lansdown PLC		4,297		96,345
HSBC Holdings PLC		353,860		3,881,495
ICAP PLC		10,458		78,208
IMI PLC		6,001		151,545
Imperial Tobacco Group PLC		18,312		708,969
Inmarsat PLC		8,616		107,864
InterContinental Hotels Group PLC		5,161		172,038
Intertek Group PLC		3,014		157,118
Intu Properties PLC		12,804		65,707
Invensys PLC		12,515		105,383
Investec PLC		10,649		77,167
ITV PLC		70,083		225,145
J Sainsbury PLC		22,870		138,231
Johnson Matthey PLC		3,807		206,778
Kingfisher PLC		44,430		283,039
Land Securities Group PLC		14,974		238,911
Legal & General Group PLC		111,805		412,315
Lloyds Banking Group PLC (a)		950,343		1,241,351
London Stock Exchange Group PLC		3,288		94,358
Marks & Spencer Group PLC		30,418		217,904
Meggitt PLC		14,614		127,655

	Shares		Value
Common Stocks (Cont.)
United Kingdom (Cont.)
Melrose Industries PLC		23,826	$	120,613
National Grid PLC		70,590		921,121
Next PLC		3,053		275,531
Old Mutual PLC		92,506		289,673
Pearson PLC		15,556		345,441
Persimmon PLC		5,648		115,881
Petrofac Ltd.		4,847		98,243
Prudential PLC		48,840		1,083,746
Randgold Resources Ltd.		1,680		105,438
Reckitt Benckiser Group PLC		12,209		969,024
Reed Elsevier PLC		22,326		332,367
Resolution Ltd.		25,930		152,003
Rexam PLC		15,034		132,071
Rio Tinto PLC		24,009		1,355,539
Rolls-Royce Holdings PLC		35,515		749,841
Rolls-Royce Holdings PLC C Shares - Entitlement Shares (a) (b)		3,054,290		5,058
Royal Bank of Scotland Group PLC (a)		40,717		227,965
Royal Dutch Shell PLC Class A		72,479		2,596,067
Royal Dutch Shell PLC Class B		47,725		1,801,889
RSA Insurance Group PLC		68,941		104,345
SABMiller PLC		18,348		942,188
Sage Group PLC, The		19,954		133,394
Schroders PLC		1,827		78,600
SEGRO PLC		14,566		80,563
Serco Group PLC		9,463		78,226
Severn Trent PLC		4,494		126,883
Shire PLC		10,434		492,774
Smith & Nephew PLC		16,679		237,805
Smiths Group PLC		7,754		190,035
SSE PLC		18,620		422,423
Standard Chartered PLC		46,177		1,039,948
Standard Life PLC		46,181		274,998
Tate & Lyle PLC		8,795		117,823
Tesco PLC		154,424		854,994
Travis Perkins PLC		4,610		142,907
Tui Travel PLC		9,288		63,537
Tullow Oil PLC		17,173		243,142
Unilever PLC		24,515		1,007,583
United Utilities Group PLC		12,767		141,965
Vodafone Group PLC		920,648		3,613,176
Weir Group PLC, The		3,929		138,713
Whitbread PLC		3,426		212,805
William Hill PLC		16,117		107,263
William Morrison Supermarkets PLC		42,189		182,342
Wolseley PLC		5,021		284,772
WPP PLC		25,636		585,837
				55,079,190

See accompanying notes to financial statements. 129

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Common Stocks (Cont.)
United States (0.05%)
Coca-Cola HBC AG Sponsored ADR		3,684	$	107,462
Perrigo Co. PLC		72		10,997
				118,459
Total Common Stocks
(cost $182,141,052)				249,495,020
Preferred Stocks (0.64%)
Germany (0.64%)
Bayerische Moteren Werke (BMW) AG PFD		1,028		87,809
Fuchs Petrolub SE PFD		674		65,870
Henkel AG & Co. KGaA PFD		3,441		399,105
Porsche Automobil Holding SE PFD		2,919		303,825
Volkswagen AG PFD		2,762		775,705
				1,632,314
Total Preferred Stocks
(cost $582,903)				1,632,314
Short-term Investments (0.57%)
State Street Institutional U.S. Government Money Market Fund		1,451,627		1,451,627
Total Short-term Investments
(cost $1,451,627)				1,451,627
TOTAL INVESTMENTS (99.03%)
(cost $184,175,582)				252,578,961
CASH (c) AND OTHER ASSETS, NET OF LIABILITIES (0.97%)				2,470,518
NET ASSETS (100.00%)			$	255,049,479

(a) Non-income producing security.

(b) In accordance with the Trust’s valuation procedures, State Farm Investment Management Corp. (“SFIMC”) determined the fair value for the security considering the facts and circumstances related to the particular security.

(c) At December 31, 2013, cash in the amount of $841,910 has been pledged to cover, in whole or in part, initial margin requirements for open futures contracts.

SDR - Swedish Depositary Receipt

ADR - American Depositary Receipt

FOREIGN CURRENCY DENOMINATIONS

Currency	Value		%
Euro	$	76,956,919		30.47
British Pound		55,079,190		21.81
Japanese Yen		52,491,690		20.78
Swiss Franc		22,368,729		8.85
Australian Dollar		18,689,575		7.40
Swedish Krona		8,129,950		3.22
Hong Kong Dollar		7,171,975		2.84
Singapore Dollar		3,639,039		1.44
Danish Krone		2,949,620		1.17
Norwegian Krone		2,048,203		0.81
United States Dollar		1,637,586		0.65
Israeli Shekel		1,132,471		0.45
New Zealand Dollar		284,014		0.11
Total Investments	$	252,578,961		100.00	%
SECTOR CLASSIFICATIONS Sector	Value		%
Financials	$	64,367,716		25.24
Industrials		32,502,006		12.74
Consumer Discretionary		29,904,863		11.73
Consumer Staples		27,468,525		10.77
Health Care		25,167,080		9.87
Materials		19,079,885		7.48
Energy		18,210,810		7.14
Telecommunication Services		14,344,173		5.62
Information Technology		11,277,830		4.42
Utilities		8,804,446		3.45
Total Stocks		251,127,334		98.46
Short-term Investments		1,451,627		0.57
Cash and Other Assets, Net of Liabilities		2,470,518		0.97
Net Assets	$	255,049,479		100.00	%

130 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

OPEN FUTURES CONTRACTS

Description	Contracts Purchased	Expiration	Notional Value		Market Value		Unrealized Gain (Loss)
ASX SPI 200 Index	4	March 2014		$451,271	$	474,844	$	23,573
Euro Stoxx 50	33	March 2014		1,330,343		1,410,973		80,630
FTSE 100 Index	9	March 2014		956,175		998,165		41,990
Hang Seng Index	1	January 2014		147,641		150,452		2,811
Nikkei 225 Index	10	March 2014		745,632		771,769		26,137
Total							$	175,141

OPEN FORWARD FOREIGN CURRENCY CONTRACTS

Currency	Counterparty	Settlement Date		Foreign amount Purchased (Sold)		U.S. Dollar amount Purchased (Sold)			Unrealized Gain		Unrealized (Loss)
British Pound	Morgan Stanley and Co. Inc.		03/19/2014		378,830	$	(617,000	)	$	9,989	$	—
Euro	UBS AG		03/19/2014		602,188		(827,000	)		1,412		—
Japanese Yen	UBS AG		03/19/2014		40,235,910		(390,000	)		—		(7,792	)
Swiss Franc	Goldman Sachs Capital Markets LP		03/19/2014		71,161		(80,000	)		—		(181	)
British Pound	UBS AG		03/19/2014		(90,812)		150,000			—		(300	)
Total									$	11,401	$	(8,273	)

See accompanying notes to financial statements. 131

STATE FARM MUTUAL FUND TRUST EQUITY AND BOND FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Shares		Value
Registered Investment Companies (99.77%)
State Farm Mutual Fund Trust Bond Fund Institutional Shares (a)		8,541,982	$	93,790,965
State Farm Mutual Fund Trust Equity Fund Institutional Shares (a)		18,666,122		161,461,952
Total Registered Investment Companies
(cost $ 227,891,550)				255,252,917
TOTAL INVESTMENTS (99.77%)
(cost $ 227,891,550)				255,252,917
CASH AND OTHER ASSETS, NET OF LIABILITIES (0.23%)				575,626
NET ASSETS (100.00%)			$	255,828,543

(a) The Equity and Bond Fund’s investment adviser is an affiliate of the issuer.

132 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Principal
	amount		Value
Corporate Bonds (64.26%)
Aerospace/Defense (1.68%)
Northrop Grumman Corp. 5.050%, 08/01/2019	$	500,000	$	552,648
Raytheon Co. 3.125%, 10/15/2020		1,500,000		1,501,708
Northrop Grumman Corp. 3.500%, 03/15/2021		500,000		496,968
Lockheed Martin Corp. 3.350%, 09/15/2021		2,000,000		1,984,402
General Dynamics Corp. 2.250%, 11/15/2022		2,000,000		1,795,742
Raytheon Co. 2.500%, 12/15/2022		2,000,000		1,822,010
Northrop Grumman Corp. 3.250%, 08/01/2023		3,000,000		2,798,265
Rockwell Collins Inc. 3.700%, 12/15/2023		500,000		493,608
				11,445,351
Agriculture, Foods, & Beverage (4.30%)
Coca-Cola Bottling Co. 5.300%, 04/01/2015		500,000		523,747
Kellogg Co. 4.450%, 05/30/2016		1,000,000		1,078,787
Hershey Co. 5.450%, 09/01/2016		500,000		558,074
General Mills Inc. 5.700%, 02/15/2017		1,000,000		1,121,350
PepsiAmericas Inc. 5.000%, 05/15/2017		500,000		550,718
Coca-Cola Co., The 5.350%, 11/15/2017		2,000,000		2,277,170
Kraft Foods Group Inc. 6.125%, 08/23/2018		369,000		430,115
Pepsico Inc. 7.900%, 11/01/2018		500,000		624,990
2.250%, 01/07/2019		2,000,000		2,005,952
Coca-Cola Co., The 3.150%, 11/15/2020		1,000,000		1,014,459
Kellogg Co. 4.000%, 12/15/2020		1,000,000		1,037,741
Campbell Soup Co. 4.250%, 04/15/2021		2,000,000		2,036,822
Hormel Foods Corp. 4.125%, 04/15/2021		1,000,000		1,032,955
General Mills Inc. 3.150%, 12/15/2021		2,000,000		1,957,782
Pepsico Inc. 2.750%, 03/05/2022		1,500,000		1,425,147
Kellogg Co. 3.125%, 05/17/2022		2,000,000		1,896,212
Kraft Foods Group Inc. 3.500%, 06/06/2022		1,500,000		1,461,891
Sysco Corp. 2.600%, 06/12/2022		2,000,000		1,823,178
Campbell Soup Co. 2.500%, 08/02/2022		1,000,000		882,167

	Principal
	amount		Value
Corporate Bonds (Cont.)
Agriculture, Foods, & Beverage (Cont.)
Kellogg Co. 2.750%, 03/01/2023	$	1,000,000	$	902,314
Pepsico Inc. 2.750%, 03/01/2023		2,000,000		1,851,124
Coca-Cola Co., The 2.500%, 04/01/2023		2,000,000		1,834,820
Hershey Co. 2.625%, 05/01/2023		1,100,000		1,011,035
				29,338,550
Automotive (0.87%)
American Honda Finance Corp. 2.125%, 10/10/2018		1,000,000		995,883
Johnson Controls Inc. 4.250%, 03/01/2021		2,000,000		2,078,040
Toyota Motor Credit Corp. 3.300%, 01/12/2022		1,000,000		1,000,290
2.625%, 01/10/2023		2,000,000		1,854,492
				5,928,705
Banks (1.81%)
Mellon Funding Corp. 5.200%, 05/15/2014		500,000		508,752
US Bank NA 4.950%, 10/30/2014		500,000		519,022
Fifth Third Bank 4.750%, 02/01/2015		500,000		520,797
Wachovia Bank NA 5.600%, 03/15/2016		500,000		547,564
Wells Fargo Bank NA 5.750%, 05/16/2016		500,000		552,678
Wachovia Corp. 5.750%, 06/15/2017		500,000		570,348
Bank of New York Mellon Corp. 2.100%, 08/01/2018		1,000,000		996,260
Wells Fargo & Co. 2.150%, 01/15/2019		1,000,000		996,868
KFW 4.875%, 06/17/2019		1,000,000		1,141,200
Bank of New York Mellon Corp. 3.550%, 09/23/2021		2,000,000		2,046,282
Wells Fargo & Co. 3.500%, 03/08/2022		2,000,000		2,000,528
US Bancorp 3.000%, 03/15/2022		2,000,000		1,933,942
				12,334,241
Building Materials & Construction (0.88%)
CRH America Inc. 6.000%, 09/30/2016		500,000		558,561
5.750%, 01/15/2021		1,000,000		1,098,908
Fluor Corp. 3.375%, 09/15/2021		2,000,000		1,949,412
Sonoco Products Co. 4.375%, 11/01/2021		1,000,000		1,016,069

See accompanying notes to financial statements. 133

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
Corporate Bonds (Cont.)
Building Materials & Construction (Cont.)
Stanley Black & Decker Inc.
2.900%, 11/01/2022	$	1,500,000	$	1,393,542
				6,016,492
Chemicals (3.29%)
E.I. du Pont de Nemours and Co. 4.875%, 04/30/2014		500,000		507,267
Praxair Inc. 5.375%, 11/01/2016		1,000,000		1,115,291
Rohm & Haas Co. 6.000%, 09/15/2017		144,000		163,358
E.I. du Pont de Nemours and Co. 6.000%, 07/15/2018		500,000		580,466
PPG Industries Inc. 7.400%, 08/15/2019		500,000		586,484
3.600%, 11/15/2020		1,000,000		1,014,839
E.I. du Pont de Nemours and Co. 3.625%, 01/15/2021		1,000,000		1,020,510
Praxair Inc. 4.050%, 03/15/2021		1,000,000		1,040,789
3.000%, 09/01/2021		1,000,000		980,757
Dow Chemical Co., The 4.125%, 11/15/2021		1,500,000		1,549,450
Praxair Inc. 2.450%, 02/15/2022		1,000,000		919,276
Syngenta Finance NV 3.125%, 03/28/2022		2,000,000		1,918,504
Monsanto Co. 2.200%, 07/15/2022		1,300,000		1,177,530
PPG Industries Inc. 2.700%, 08/15/2022		2,000,000		1,824,946
Dow Chemical Co., The 3.000%, 11/15/2022		2,000,000		1,865,280
E.I. du Pont de Nemours and Co. 2.800%, 02/15/2023		2,000,000		1,831,686
Praxair Inc. 2.700%, 02/21/2023		2,000,000		1,845,294
International Flavors & Fragrances Inc. 3.200%, 05/01/2023		2,000,000		1,846,040
Dow Chemical Co., The 7.375%, 11/01/2029		500,000		642,556
				22,430,323
Colleges (0.16%)
Dartmouth College 4.750%, 06/01/2019		1,000,000		1,113,937
Commercial Service/Supply (0.59%)
Pitney Bowes Inc. 5.750%, 09/15/2017		500,000		550,994
Cintas Corp. No. 2 6.125%, 12/01/2017		500,000		563,023
4.300%, 06/01/2021		1,000,000		1,038,174
3.250%, 06/01/2022		2,000,000		1,906,696
				4,058,887

	Principal
	amount		Value
Corporate Bonds (Cont.)
Computer Software & Services (1.94%)
Oracle Corp. 2.375%, 01/15/2019	$	1,000,000	$	1,008,952
Texas Instruments Inc. 1.650%, 08/03/2019		1,000,000		963,253
Microsoft Corp. 3.000%, 10/01/2020		2,000,000		2,038,484
Intel Corp. 3.300%, 10/01/2021		2,000,000		1,986,984
Oracle Corp. 2.500%, 10/15/2022		2,000,000		1,831,872
Intel Corp. 2.700%, 12/15/2022		2,000,000		1,843,614
Microsoft Corp. 2.375%, 05/01/2023		2,000,000		1,809,406
Texas Instruments Inc. 2.250%, 05/01/2023		2,000,000		1,764,812
				13,247,377
Computers (1.37%)
International Business Machines Corp.
5.700%, 09/14/2017		500,000		574,149
1.875%, 05/15/2019		2,000,000		1,961,656
1.625%, 05/15/2020		1,000,000		937,731
Hewlett-Packard Co. 3.750%, 12/01/2020		1,000,000		997,818
4.300%, 06/01/2021		2,000,000		2,027,098
International Business Machines Corp.
1.875%, 08/01/2022		1,000,000		873,943
Hewlett-Packard Co. 4.050%, 09/15/2022		1,000,000		982,977
International Business Machines Corp.
3.375%, 08/01/2023		1,000,000		974,304
				9,329,676
Consumer & Marketing (4.38%)
Procter & Gamble Co., The 4.950%, 08/15/2014		1,000,000		1,028,410
Clorox Co. 5.000%, 01/15/2015		500,000		522,661
Procter & Gamble Co., The 3.150%, 09/01/2015		1,000,000		1,042,185
Estee Lauder Co. Inc. 5.550%, 05/15/2017		1,000,000		1,110,302
Kimberly-Clark Corp. 6.125%, 08/01/2017		500,000		576,737
Danaher Corp. 5.625%, 01/15/2018		500,000		569,975
Kimberly-Clark Corp. 6.250%, 07/15/2018		1,000,000		1,172,120
Unilever Capital Corp. 2.200%, 03/06/2019		1,000,000		998,716

134 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
Corporate Bonds (Cont.)
Consumer & Marketing (Cont.)
McDonald’s Corp. 1.875%, 05/29/2019	$	500,000	$	487,853
Colgate-Palmolive Co. 2.950%, 11/01/2020		1,000,000		993,502
Unilever Capital Corp. 4.250%, 02/10/2021		3,000,000		3,217,221
Clorox Co. 3.800%, 11/15/2021		1,000,000		1,006,346
McDonald’s Corp. 2.625%, 01/15/2022		1,000,000		952,990
Valspar Corp. 4.200%, 01/15/2022		2,000,000		1,972,382
Procter & Gamble Co., The 2.300%, 02/06/2022		2,000,000		1,874,486
Kimberly-Clark Corp. 2.400%, 03/01/2022		1,000,000		929,519
Colgate-Palmolive Co. 2.300%, 05/03/2022		2,000,000		1,833,820
Clorox Co. 3.050%, 09/15/2022		1,000,000		937,356
Colgate-Palmolive Co. 1.950%, 02/01/2023		1,000,000		869,220
2.100%, 05/01/2023		1,000,000		881,600
NIKE Inc. 2.250%, 05/01/2023		1,500,000		1,341,194
Kimberly-Clark Corp. 2.400%, 06/01/2023		3,000,000		2,713,434
Procter & Gamble Co., The 3.100%, 08/15/2023		3,000,000		2,884,641
				29,916,670
Electronic/Electrical Manufacturing (0.91%)
Emerson Electric Co. 4.750%, 10/15/2015		1,000,000		1,069,167
General Electric Co. 2.700%, 10/09/2022		2,000,000		1,871,998
Emerson Electric Co. 2.625%, 02/15/2023		3,500,000		3,268,972
				6,210,137
Financial Services (1.60%)
JPMorgan Chase & Co. 5.375%, 01/15/2014		500,000		500,804
General Electric Capital Corp. 4.875%, 03/04/2015		500,000		525,207
JPMorgan Chase Bank NA 5.875%, 06/13/2016		500,000		554,544
General Electric Capital Corp. 5.400%, 02/15/2017		500,000		556,462
JPMorgan Chase Bank NA 6.000%, 10/01/2017		1,000,000		1,144,119
Simon Property Group Inc. 6.125%, 05/30/2018		1,000,000		1,157,814
General Electric Capital Corp. 4.650%, 10/17/2021		1,000,000		1,089,448

	Principal
	amount		Value
Corporate Bonds (Cont.)
Financial Services (Cont.)
JPMorgan Chase & Co. 4.500%, 01/24/2022	$	1,000,000	$	1,057,731
General Electric Capital Corp. 3.150%, 09/07/2022		1,500,000		1,451,576
JPMorgan Chase & Co. 3.250%, 09/23/2022		2,000,000		1,916,642
3.200%, 01/25/2023		1,000,000		948,026
				10,902,373
Forest Products & Paper (0.17%)
International Paper Co. 5.250%, 04/01/2016		500,000		541,051
Willamette Industries Inc. 9.000%, 10/01/2021		500,000		619,583
				1,160,634
Health Care (6.29%)
Pfizer Inc. 4.500%, 02/15/2014		1,000,000		1,004,757
GlaxoSmithKline Capital Inc. 4.375%, 04/15/2014		1,000,000		1,011,170
AstraZeneca PLC 5.400%, 06/01/2014		1,000,000		1,020,931
Amgen Inc. 4.850%, 11/18/2014		500,000		518,586
Merck & Co. Inc. 4.750%, 03/01/2015		500,000		524,785
Baxter International Inc. 4.625%, 03/15/2015		1,000,000		1,048,246
Medtronic Inc. 4.750%, 09/15/2015		500,000		535,448
Baxter International Inc. 5.900%, 09/01/2016		500,000		563,403
Eli Lilly & Co. 5.200%, 03/15/2017		2,000,000		2,233,238
Wyeth 5.450%, 04/01/2017		500,000		561,522
Amgen Inc. 5.850%, 06/01/2017		500,000		567,299
Johnson & Johnson 5.550%, 08/15/2017		500,000		570,712
AstraZeneca PLC 5.900%, 09/15/2017		500,000		571,733
Schering-Plough Corp. 6.000%, 09/15/2017		500,000		578,013
Becton Dickinson & Co. 5.000%, 05/15/2019		1,000,000		1,121,268
Baxter International Inc. 4.500%, 08/15/2019		500,000		547,798
AstraZeneca PLC 1.950%, 09/18/2019		1,500,000		1,457,427
Becton Dickinson & Co. 3.250%, 11/12/2020		1,000,000		998,402
CR Bard Inc. 4.400%, 01/15/2021		1,000,000		1,043,886

See accompanying notes to financial statements. 135

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
Corporate Bonds (Cont.)
Health Care (Cont.)
Medtronic Inc. 4.125%, 03/15/2021	$	1,000,000	$	1,045,541
Sanofi-Aventis 4.000%, 03/29/2021		1,000,000		1,047,613
Becton Dickinson & Co. 3.125%, 11/08/2021		1,000,000		969,364
Amgen Inc. 3.875%, 11/15/2021		1,000,000		1,027,190
Medtronic Inc. 3.125%, 03/15/2022		1,000,000		971,643
GlaxoSmithKline Capital Inc. 2.850%, 05/08/2022		2,000,000		1,886,292
Bristol-Myers Squibb Co. 2.000%, 08/01/2022		1,500,000		1,327,725
Baxter International Inc. 2.400%, 08/15/2022		2,000,000		1,812,976
Merck & Co. Inc. 2.400%, 09/15/2022		2,000,000		1,826,866
Novartis Capital Corp. 2.400%, 09/21/2022		2,000,000		1,833,660
GlaxoSmithKline Capital Inc. 2.800%, 03/18/2023		2,000,000		1,852,286
Medtronic Inc. 2.750%, 04/01/2023		2,500,000		2,312,475
Merck & Co. Inc. 2.800%, 05/18/2023		2,000,000		1,851,568
Baxter International Inc. 3.200%, 06/15/2023		4,000,000		3,821,396
Pfizer Inc. 3.000%, 06/15/2023		2,000,000		1,879,142
Bristol-Myers Squibb Co. 3.250%, 11/01/2023		1,000,000		959,518
				42,903,879
Machinery & Manufacturing (5.48%)
United Technologies Corp. 4.875%, 05/01/2015		1,000,000		1,056,804
Ingersoll-Rand Co. Ltd. 4.750%, 05/15/2015		1,000,000		1,040,543
Thermo Electron Corp. 5.000%, 06/01/2015		500,000		529,522
Dover Corp. 4.875%, 10/15/2015		1,000,000		1,071,929
Honeywell International Inc. 5.400%, 03/15/2016		1,000,000		1,096,308
Caterpillar Inc. 5.700%, 08/15/2016		500,000		557,446
Eaton Corp. 5.300%, 03/15/2017		1,000,000		1,113,749
Honeywell International Inc. 5.300%, 03/15/2017		500,000		556,874
Cooper U.S. Inc. 6.100%, 07/01/2017		500,000		570,928
Caterpillar Financial Services Corp. 5.850%, 09/01/2017		500,000		569,970

	Principal
	amount		Value
Corporate Bonds (Cont.)
Machinery & Manufacturing (Cont.)
John Deere Capital Corp. 2.800%, 09/18/2017	$	2,000,000	$	2,093,704
Covidien International 6.000%, 10/15/2017		500,000		572,781
United Technologies Corp. 5.375%, 12/15/2017		500,000		569,780
Thermo Fisher Scientific Inc. 2.400%, 02/01/2019		1,000,000		990,691
John Deere Capital Corp. 1.700%, 01/15/2020		1,000,000		941,681
Cooper U.S. Inc. 3.875%, 12/15/2020		1,000,000		1,010,040
Dover Corp. 4.300%, 03/01/2021		1,000,000		1,058,320
Honeywell International Inc. 4.250%, 03/01/2021		1,000,000		1,072,927
Caterpillar Inc. 3.900%, 05/27/2021		1,000,000		1,038,701
Illinois Tool Works Inc. 3.375%, 09/15/2021		1,000,000		995,215
Bemis Company Inc. 4.500%, 10/15/2021		1,000,000		1,021,408
John Deere Capital Corp. 2.750%, 03/15/2022		1,000,000		946,514
Caterpillar Financial Services Corp. 2.850%, 06/01/2022		2,000,000		1,902,330
United Technologies Corp. 3.100%, 06/01/2022		2,000,000		1,955,564
Deere & Co. 2.600%, 06/08/2022		1,000,000		935,066
Covidien International 3.200%, 06/15/2022		2,000,000		1,928,572
3M Co. 2.000%, 06/26/2022		1,500,000		1,368,727
Parker Hannifin Corp. 3.500%, 09/15/2022		1,000,000		977,495
Thermo Fisher Scientific Inc. 3.150%, 01/15/2023		2,000,000		1,861,226
Caterpillar Financial Services Corp. 2.625%, 03/01/2023		2,000,000		1,817,276
Covidien International 2.950%, 06/15/2023		3,000,000		2,775,192
Total Capital Canada Ltd. 2.750%, 07/15/2023		1,500,000		1,385,728
				37,383,011
Media & Broadcasting (1.91%)
Walt Disney Co., The 5.625%, 09/15/2016		1,000,000		1,122,756
McGraw-Hill Companies Inc. 5.900%, 11/15/2017		500,000		543,104
Walt Disney Co., The 2.750%, 08/16/2021		2,000,000		1,928,250
Thomson Reuters Corp. 3.950%, 09/30/2021		1,000,000		996,271

136 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
Corporate Bonds (Cont.)
Media & Broadcasting (Cont.)
Walt Disney Co., The 2.550%, 02/15/2022	$	1,000,000	$	930,952
Comcast Corp. 3.125%, 07/15/2022		2,000,000		1,908,604
Reed Elsevier Capital 3.125%, 10/15/2022		2,000,000		1,849,508
Walt Disney Co., The 2.350%, 12/01/2022		2,000,000		1,817,170
Comcast Corp. 2.850%, 01/15/2023		1,000,000		924,607
Thomson Reuters Corp. 4.300%, 11/23/2023		1,000,000		1,004,300
				13,025,522
Mining & Metals (2.22%)
Alcan Inc. 5.000%, 06/01/2015		1,000,000		1,056,716
Alcoa Inc. 5.550%, 02/01/2017		500,000		538,180
BHP Billiton Finance USA Ltd. 5.400%, 03/29/2017		500,000		559,979
2.050%, 09/30/2018		500,000		499,938
Rio Tinto Finance USA PLC 2.250%, 12/14/2018		2,000,000		1,990,132
Rio Tinto Finance USA Ltd. 3.500%, 11/02/2020		1,000,000		1,020,973
4.125%, 05/20/2021		2,000,000		2,074,586
Barrick NA Finance LLC 4.400%, 05/30/2021		1,000,000		962,846
BHP Billiton Finance USA Ltd. 3.250%, 11/21/2021		1,500,000		1,491,111
Alcoa Inc. 5.870%, 02/23/2022		750,000		774,118
BHP Billiton Finance USA Ltd. 2.875%, 02/24/2022		1,000,000		956,319
Barrick Gold Corp. 3.850%, 04/01/2022		1,000,000		900,630
4.100%, 05/01/2023		2,000,000		1,807,782
BHP Billiton Finance USA Ltd. 3.850%, 09/30/2023		500,000		502,169
				15,135,479
Oil & Gas (5.29%)
ConocoPhillips Canada 5.625%, 10/15/2016		500,000		559,433
Apache Corp. 5.625%, 01/15/2017		500,000		561,947
Shell International Finance 5.200%, 03/22/2017		500,000		558,532
Canadian National Resources 5.700%, 05/15/2017		500,000		561,909
Weatherford International Inc. 6.350%, 06/15/2017		500,000		565,257

	Principal
	amount		Value
Corporate Bonds (Cont.)
Oil & Gas (Cont.)
EOG Resources Inc. 5.875%, 09/15/2017	$	500,000	$	571,903
Husky Energy Inc. 6.200%, 09/15/2017		500,000		569,985
Encana Corp. 5.900%, 12/01/2017		500,000		567,426
Chevron Corp. 1.718%, 06/24/2018		2,000,000		1,992,452
Shell International Finance 1.900%, 08/10/2018		1,500,000		1,491,062
Total Capital SA 2.125%, 08/10/2018		1,000,000		1,003,878
Chevron Corp. 4.950%, 03/03/2019		1,000,000		1,134,309
ConocoPhillips 6.000%, 01/15/2020		500,000		586,558
Chevron Corp. 2.427%, 06/24/2020		2,000,000		1,946,120
Trans-Canada Pipelines 3.800%, 10/01/2020		1,000,000		1,035,133
Apache Corp. 3.625%, 02/01/2021		500,000		514,769
Occidental Petroleum Corp. 4.100%, 02/01/2021		1,000,000		1,049,736
Canadian National Resources 3.450%, 11/15/2021		1,000,000		982,654
Total Capital International SA 2.875%, 02/17/2022		2,000,000		1,901,912
Apache Corp. 3.250%, 04/15/2022		724,000		713,324
Devon Energy Corp. 3.250%, 05/15/2022		1,500,000		1,430,324
Trans-Canada Pipelines 2.500%, 08/01/2022		2,000,000		1,824,148
Shell International Finance 2.375%, 08/21/2022		2,000,000		1,831,338
Chevron Corp. 2.355%, 12/05/2022		2,000,000		1,819,176
Shell International Finance 2.250%, 01/06/2023		1,500,000		1,339,389
Total Capital International SA 2.700%, 01/25/2023		1,000,000		922,444
Occidental Petroleum Corp. 2.700%, 02/15/2023		2,000,000		1,830,938
EOG Resources Inc. 2.625%, 03/15/2023		2,000,000		1,819,538
Shell International Finance 3.400%, 08/12/2023		500,000		487,327
Nabors Industries Inc. (a) 5.100%, 09/15/2023		2,000,000		1,983,884
Trans-Canada Pipelines 3.750%, 10/16/2023		1,000,000		974,658

See accompanying notes to financial statements. 137

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
Corporate Bonds (Cont.)
Oil & Gas (Cont.)
Total Capital International SA 3.700%, 01/15/2024	$	1,000,000	$	988,774
				36,120,237
Retailers (3.50%)
Lowe’s Companies Inc. 5.000%, 10/15/2015		1,000,000		1,076,922
Target Corp. 5.875%, 07/15/2016		1,000,000		1,125,282
Lowe’s Companies Inc. 5.400%, 10/15/2016		500,000		560,020
McDonald’s Corp. 5.300%, 03/15/2017		500,000		558,534
Target Corp. 5.375%, 05/01/2017		500,000		562,026
CVS Caremark Corp. 5.750%, 06/01/2017		500,000		567,056
Home Depot Inc. 2.250%, 09/10/2018		1,000,000		1,013,753
CVS Caremark Corp. 2.250%, 12/05/2018		1,000,000		999,708
Costco Wholesale Corp. 1.700%, 12/15/2019		2,000,000		1,926,454
Home Depot Inc. 3.950%, 09/15/2020		1,000,000		1,066,894
Wal-Mart Stores Inc. 3.250%, 10/25/2020		2,000,000		2,042,212
Home Depot Inc. 4.400%, 04/01/2021		1,000,000		1,079,974
Lowe’s Companies Inc. 3.800%, 11/15/2021		1,000,000		1,030,998
3.120%, 04/15/2022		1,000,000		969,637
Walgreen Co. 3.100%, 09/15/2022		2,000,000		1,874,976
CVS Caremark Corp. 2.750%, 12/01/2022		2,000,000		1,845,946
Home Depot Inc. 2.700%, 04/01/2023		3,000,000		2,765,550
Wal-Mart Stores Inc. 2.550%, 04/11/2023		2,000,000		1,827,346
Lowe’s Companies Inc. 3.875%, 09/15/2023		1,000,000		1,005,438
				23,898,726
Telecom & Telecom Equipment (2.63%)
Vodafone Group PLC 4.150%, 06/10/2014		500,000		507,976
BellSouth Corp. 5.200%, 09/15/2014		1,000,000		1,032,614
Verizon Global Funding Corp. 4.900%, 09/15/2015		500,000		534,066
SBC Communications Inc. 5.625%, 06/15/2016		1,000,000		1,103,582
Verizon Communications Inc. 3.650%, 09/14/2018		1,000,000		1,058,564

	Principal
	amount		Value
Corporate Bonds (Cont.)
Telecom & Telecom Equipment (Cont.)
AT&T Inc. 2.375%, 11/27/2018	$	1,000,000	$	1,000,858
Vodafone Group PLC 5.450%, 06/10/2019		500,000		568,370
Verizon Communications Inc. 4.500%, 09/15/2020		1,000,000		1,070,566
Telefonica Emisiones SAU 5.462%, 02/16/2021		1,000,000		1,055,143
Vodafone Group PLC 4.375%, 03/16/2021		2,000,000		2,077,428
AT&T Inc. 4.450%, 05/15/2021		1,000,000		1,052,830
3.000%, 02/15/2022		1,000,000		942,154
Vodafone Group PLC 2.500%, 09/26/2022		1,000,000		883,145
Verizon Communications Inc. 2.450%, 11/01/2022		2,500,000		2,213,112
AT&T Inc. 2.625%, 12/01/2022		1,000,000		902,262
Vodafone Group PLC 2.950%, 02/19/2023		1,000,000		912,010
Verizon Communications inc. 5.150%, 09/15/2023		1,000,000		1,073,692
				17,988,372
Transportation (2.62%)
United Parcel Service Inc. 3.125%, 01/15/2021		1,500,000		1,501,800
Burlington North Santa Fe 3.050%, 03/15/2022		1,000,000		947,835
Norfolk Southern Corp. 3.000%, 04/01/2022		2,000,000		1,889,524
Burlington North Santa Fe 3.050%, 09/01/2022		500,000		468,797
United Parcel Service Inc. 2.450%, 10/01/2022		2,000,000		1,837,828
Canadian National Railway Co. 2.250%, 11/15/2022		2,000,000		1,792,910
Union Pacific Corp. 2.950%, 01/15/2023		2,000,000		1,848,438
Burlington North Santa Fe 3.000%, 03/15/2023		2,000,000		1,862,522
Union Pacific Corp. 2.750%, 04/15/2023		2,000,000		1,830,198
Burlington North Santa Fe 3.850%, 09/01/2023		2,000,000		1,967,280
CSX Corp. 3.700%, 11/01/2023		1,000,000		967,403
Norfolk Southern Corp. 3.850%, 01/15/2024		1,000,000		982,259
				17,896,794
Utilities & Energy (10.37%)
NSTAR Electric Co. 4.875%, 04/15/2014		1,000,000		1,012,468

138 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
Corporate Bonds (Cont.)
Utilities & Energy (Cont.)
Union Electric Co. 5.500%, 05/15/2014	$	500,000	$	509,119
Atmos Energy Corp. 4.950%, 10/15/2014		1,000,000		1,033,068
Union Electric Co. 4.750%, 04/01/2015		500,000		525,594
Commonwealth Edison Co. 4.700%, 04/15/2015		500,000		525,146
Southwestern Electric Power 5.375%, 04/15/2015		500,000		526,273
San Diego Gas & Electric Co. 5.300%, 11/15/2015		500,000		540,784
Consolidated Edison Co. NY 5.375%, 12/15/2015		1,000,000		1,087,651
Virginia Electric & Power Co. 5.400%, 01/15/2016		500,000		544,017
Ohio Power Co. 6.000%, 06/01/2016		500,000		553,524
Commonwealth Edison Co. 5.950%, 08/15/2016		500,000		559,004
Baltimore Gas & Electric Co. 5.900%, 10/01/2016		500,000		560,150
Consolidated Edison Co. NY 5.300%, 12/01/2016		500,000		559,317
Georgia Power Co. 5.700%, 06/01/2017		500,000		563,588
Jersey Central Power & Light 5.650%, 06/01/2017		1,000,000		1,102,837
Atmos Energy Corp. 6.350%, 06/15/2017		500,000		565,434
Kansas City Power & Light Co. 5.850%, 06/15/2017		1,000,000		1,103,569
Union Electric Co. 6.400%, 06/15/2017		500,000		573,232
Florida Power Corp. 5.800%, 09/15/2017		500,000		568,644
Virginia Electric & Power Co. 5.950%, 09/15/2017		500,000		576,535
NSTAR Electric Co. 5.625%, 11/15/2017		500,000		566,386
Pacific Gas & Electric 5.625%, 11/30/2017		500,000		566,488
Equitable Resources Inc. 5.150%, 03/01/2018		500,000		537,558
Southern California Gas 5.450%, 04/15/2018		500,000		569,660
Pacificorp 5.650%, 07/15/2018		500,000		574,359
Public Service Electric and Gas Co. 2.300%, 09/15/2018		1,000,000		1,008,170
Pacific Gas & Electric 8.250%, 10/15/2018		500,000		625,338
MidAmerican Energy Co. 2.400%, 03/15/2019		1,000,000		1,007,007
Alabama Power Co. 3.375%, 10/01/2020		1,000,000		1,019,293

	Principal
	amount		Value
Corporate Bonds (Cont.)
Utilities & Energy (Cont.)
Pacific Gas & Electric 3.500%, 10/01/2020	$	1,000,000	$	1,017,684
Kentucky Utilities 3.250%, 11/01/2020		1,000,000		1,016,186
Public Service Company of Colorado 3.200%, 11/15/2020		1,000,000		1,005,147
Appalachian Power Co. 4.600%, 03/30/2021		500,000		536,353
Commonwealth Edison 3.400%, 09/01/2021		1,000,000		1,005,628
Pacific Gas & Electric 3.250%, 09/15/2021		1,000,000		982,174
Carolina Power & Light Co. 2.800%, 05/15/2022		1,000,000		952,682
Consumers Energy Co. 2.850%, 05/15/2022		2,000,000		1,905,560
Georgia Power Co. 2.850%, 05/15/2022		2,000,000		1,887,454
Detroit Edison Co. 2.650%, 06/15/2022		500,000		468,936
CenterPoint Energy Houston LLC 2.250%, 08/01/2022		2,000,000		1,808,354
Baltimore Gas & Electric Co. 2.800%, 08/15/2022		1,500,000		1,396,311
Northern States Power Co. 2.150%, 08/15/2022		500,000		449,953
Pacific Gas & Electric 2.450%, 08/15/2022		1,000,000		897,745
Ameren Illinois Co. 2.700%, 09/01/2022		2,000,000		1,871,898
PPL Electric Utilities 2.500%, 09/01/2022		500,000		460,933
PECO Energy Co. 2.375%, 09/15/2022		500,000		454,382
Public Service Company of Colorado 2.250%, 09/15/2022		1,000,000		906,513
Tampa Electric Co. 2.600%, 09/15/2022		500,000		460,950
NSTAR Electric Co. 2.375%, 10/15/2022		1,000,000		908,020
Wisconsin Power & Light 2.250%, 11/15/2022		1,600,000		1,430,938
Connecticut Light & Power 2.500%, 01/15/2023		1,000,000		913,932
Indiana Michigan Power Co. 3.200%, 03/15/2023		2,500,000		2,336,988
Kansas City Power & Light Co. 3.150%, 03/15/2023		2,000,000		1,854,684
Public Service Company of Colorado 2.500%, 03/15/2023		2,000,000		1,820,728
Virginia Electric & Power Co. 2.750%, 03/15/2023		2,000,000		1,859,488
Northern States Power Co. 2.600%, 05/15/2023		1,000,000		918,375
Public Service Electric and Gas Co. 2.375%, 05/15/2023		3,000,000		2,697,501

See accompanying notes to financial statements. 139

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
Corporate Bonds (Cont.)
Utilities & Energy (Cont.)
Florida Power & Light Co. 2.750%, 06/01/2023	$	2,000,000	$	1,872,024
Pacificorp 2.950%, 06/01/2023		1,000,000		938,113
Pacific Gas & Electric 3.250%, 06/15/2023		2,000,000		1,897,160
Baltimore Gas & Electric Co. 3.350%, 07/01/2023		3,000,000		2,880,315
Consumers Energy Co. 3.375%, 08/15/2023		1,000,000		973,416
Laclede Gas Co. 3.400%, 08/15/2023		1,000,000		971,477
Duke Energy Ohio Inc. 3.800%, 09/01/2023		1,200,000		1,199,402
San Diego Gas & Electric Co. 3.600%, 09/01/2023		2,000,000		1,999,006
DTE Electric Co. 3.650%, 03/15/2024		2,000,000		1,985,454
San Diego Gas & Electric Co. 6.000%, 06/01/2026		500,000		596,746
Northern States Power Co. 6.200%, 07/01/2037		1,000,000		1,196,778
				70,799,601
Total Corporate Bonds
(cost $443,612,957)				438,584,974
Commercial Mortgage-Backed Securities (0.06%)
LB-UBS Commercial Mortgage Trust Series 2004-C2 Class A4
4.367%, 03/15/2036		449,146		449,901
Total Commercial Mortgage-Backed Securities
(cost $448,031)				449,901
Government Agency Securities (b) (20.89%)
Agency Commercial Mortgage-Backed Securities (10.71%)
Federal Home Loan Mortgage Corp. 2.789%, 01/25/2022		10,000,000		9,705,400
2.373%, 05/25/2022		10,000,000		9,329,910
2.682%, 10/25/2022		10,000,000		9,469,880
Federal National Mortgage Association 3.044%, 01/25/2022		10,000,000		9,756,620
2.715%, 02/25/2022		7,000,000		6,751,115
2.482%, 04/25/2022		10,000,000		9,413,170
2.377%, 05/25/2022		10,000,000		9,303,360
2.509%, 11/25/2022		10,000,000		9,355,220
				73,084,675
Agency Mortgage-Backed Securities (9.05%)
Federal Home Loan Mortgage Corp. 5.000%, 07/01/2018		103,338		109,435
5.000%, 09/01/2018		99,211		105,086
5.000%, 09/01/2018		53,838		57,015
4.500%, 11/01/2018		159,643		169,179
5.500%, 11/01/2018		80,697		84,971
5.000%, 01/01/2019		71,366		75,579
5.000%, 04/01/2019		74,349		78,744

	Principal
	amount		Value
Government Agency Securities (Cont.)
Agency Mortgage-Backed Securities (Cont.)
4.500%, 05/01/2019	$	106,959	$	113,411
4.000%, 05/01/2019		76,014		80,387
5.500%, 06/01/2019		114,690		120,837
5.000%, 01/01/2020		80,584		85,352
5.500%, 04/01/2020		126,216		136,782
5.500%, 07/01/2020		202,974		219,762
6.000%, 07/01/2021		190,252		208,286
4.500%, 05/01/2024		466,276		500,064
4.500%, 05/01/2024		184,198		197,496
4.500%, 09/01/2024		409,627		439,397
5.000%, 10/01/2024		607,343		653,867
4.000%, 10/01/2024		580,291		612,861
4.000%, 01/01/2025		452,137		479,334
4.000%, 07/01/2025		494,462		522,190
4.500%, 08/01/2025		461,912		495,786
3.500%, 04/01/2026		647,724		675,562
2.500%, 02/01/2027		4,888,718		4,849,066
6.000%, 11/01/2028		13,254		14,826
6.500%, 06/01/2029		25,056		28,071
7.500%, 12/01/2030		916		965
7.000%, 07/01/2031		2,930		3,208
6.500%, 09/01/2031		4,298		4,810
6.000%, 11/01/2032		42,391		47,450
6.000%, 12/01/2032		24,296		27,188
5.500%, 05/01/2033		362,597		399,488
5.500%, 07/01/2033		446,818		492,215
5.000%, 08/01/2033		175,884		191,253
5.500%, 03/01/2034		96,393		105,260
5.000%, 04/01/2034		113,261		122,647
6.000%, 07/01/2034		386,759		428,097
5.500%, 05/01/2035		461,358		515,776
5.000%, 05/01/2035		392,189		423,609
4.500%, 08/01/2035		125,775		133,293
5.000%, 10/01/2035		107,078		115,578
6.500%, 08/01/2036		177,813		198,470
5.500%, 10/01/2037		203,405		221,685
5.500%, 11/01/2037		264,045		287,776
6.000%, 01/01/2038		157,406		173,498
6.000%, 01/01/2038		118,563		130,911
4.500%, 06/01/2039		785,877		832,553
5.000%, 06/01/2039		572,202		616,705
4.500%, 10/01/2039		981,620		1,039,559
5.000%, 10/01/2039		866,109		933,933
5.000%, 01/01/2040		412,726		445,070
4.500%, 02/01/2040		343,314		363,737
4.000%, 07/01/2041		1,842,505		1,893,712
Federal National Mortgage Association 5.500%, 12/01/2016		8,053		8,553
5.500%, 01/01/2017		49,322		52,383
6.500%, 01/01/2017		11,408		11,734
5.500%, 01/01/2017		9,811		10,420
5.500%, 02/01/2017		41,506		44,084
5.000%, 03/01/2017		44,557		47,398
6.000%, 04/01/2017		9,553		10,068
5.500%, 01/01/2018		36,474		38,765
5.000%, 02/01/2018		54,629		58,144

140 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
Government Agency Securities (Cont.)
Agency Mortgage-Backed Securities (Cont.)
5.000%, 05/01/2018	$	135,910	$	144,671
5.000%, 05/01/2018		116,367		123,976
4.500%, 05/01/2018		106,191		113,011
4.500%, 05/01/2018		102,809		109,374
5.000%, 05/01/2018		60,472		64,020
4.500%, 03/01/2019		91,497		96,961
5.500%, 10/01/2019		276,769		299,324
5.000%, 11/01/2019		168,231		180,079
4.500%, 12/01/2019		109,940		117,062
5.000%, 06/01/2020		309,830		333,393
4.500%, 09/01/2020		144,408		153,398
5.000%, 05/01/2021		237,505		252,136
5.500%, 05/01/2021		210,717		230,200
4.500%, 04/01/2023		53,722		57,245
5.000%, 01/01/2024		245,371		264,965
4.500%, 04/01/2024		76,863		81,971
4.000%, 06/01/2024		379,390		402,389
4.500%, 11/01/2024		359,823		383,234
3.500%, 12/01/2025		603,392		631,677
3.000%, 12/01/2026		1,272,568		1,300,055
7.500%, 09/01/2029		19,436		22,201
8.000%, 03/01/2030		3,437		3,596
6.500%, 05/01/2030		18,866		21,133
6.500%, 08/01/2031		2,001		2,225
7.000%, 08/01/2031		1,777		1,797
6.500%, 10/01/2031		14,043		16,018
6.000%, 11/01/2031		14,799		16,393
7.000%, 01/01/2032		23,561		27,220
3.000%, 02/01/2032		6,450,136		6,367,252
3.000%, 02/01/2032		4,382,097		4,328,798
6.000%, 03/01/2032		11,764		13,075
6.500%, 03/01/2032		7,427		8,461
6.500%, 04/01/2032		53,400		59,852
7.000%, 04/01/2032		23,363		25,356
6.500%, 05/01/2032		186,170		207,146
6.000%, 05/01/2032		13,089		14,709
7.000%, 06/01/2032		35,782		39,873
7.000%, 06/01/2032		21,551		23,447
6.500%, 06/01/2032		13,668		15,192
6.500%, 07/01/2032		30,087		33,451
6.000%, 08/01/2032		117,208		131,996
5.500%, 10/01/2032		156,164		172,343
6.500%, 10/01/2032		62,270		69,195
6.000%, 11/01/2032		87,126		97,867
6.000%, 01/01/2033		64,548		72,403
5.500%, 03/01/2033		62,786		69,138
5.500%, 03/01/2033		55,023		60,620
6.000%, 04/01/2033		171,531		190,097
5.000%, 05/01/2033		176,560		191,530
5.000%, 05/01/2033		58,998		64,290
5.000%, 08/01/2033		203,497		221,350
5.500%, 10/01/2033		208,045		229,049
5.000%, 03/01/2034		347,073		377,837
5.500%, 05/01/2034		277,217		307,189
6.000%, 07/01/2034		161,391		181,188
5.500%, 12/01/2034		433,173		479,970

	Principal
	amount		Value
Government Agency Securities (Cont.)
Agency Mortgage-Backed Securities (Cont.)
5.500%, 04/01/2035	$	258,162	$	284,609
5.000%, 07/01/2035		302,736		328,614
5.500%, 07/01/2035		268,904		295,160
5.000%, 10/01/2035		220,009		238,742
5.000%, 11/01/2035		84,435		91,614
6.000%, 08/01/2036		138,139		153,180
6.000%, 12/01/2037		71,739		79,361
5.500%, 02/01/2038		221,488		243,268
5.500%, 06/01/2038		515,667		566,599
4.500%, 03/01/2039		715,460		760,180
5.000%, 05/01/2039		777,855		845,064
4.500%, 05/01/2039		562,985		597,735
5.000%, 11/01/2039		1,083,698		1,186,874
4.500%, 01/01/2040		662,445		701,877
4.500%, 09/01/2040		1,205,607		1,277,844
3.500%, 01/01/2041		1,816,310		1,806,262
4.500%, 04/01/2041		639,309		677,742
5.000%, 05/01/2041		836,331		912,224
4.000%, 11/01/2041		2,042,821		2,104,500
Government National Mortgage Association 6.000%, 05/15/2017		42,428		44,392
6.500%, 06/15/2028		35,516		40,723
6.000%, 11/15/2028		22,688		25,338
6.500%, 03/15/2029		46,284		53,064
7.000%, 06/15/2029		18,459		18,867
7.500%, 08/20/2030		8,734		10,395
6.000%, 01/15/2032		14,618		16,474
5.500%, 10/15/2033		199,974		221,388
5.000%, 11/20/2033		312,945		343,258
6.000%, 12/20/2033		98,207		109,976
5.500%, 11/15/2038		403,457		443,915
5.000%, 09/15/2039		808,967		877,617
4.500%, 10/15/2039		1,281,728		1,369,254
5.000%, 12/15/2039		334,959		364,594
4.000%, 09/20/2040		2,487,897		2,592,847
4.500%, 03/20/2041		529,943		568,929
5.000%, 05/20/2041		448,789		490,251
				61,788,470
Agency Notes & Bonds (1.13%)
Federal National Mortgage Association 5.500%, 05/10/2027		5,000,000		5,516,935
7.125%, 01/15/2030		500,000		677,822
Tennessee Valley Authority 1.750%, 10/15/2018		1,500,000		1,490,680
				7,685,437
Total Government Agency Securities
(cost $145,098,707)				142,558,582
U.S. Treasury Obligations (13.57%)
U.S. Treasury Bonds 7.500%, 11/15/2016		500,000		595,781
8.125%, 08/15/2019		750,000		999,200
6.875%, 08/15/2025		1,000,000		1,361,562

See accompanying notes to financial statements. 141

STATE FARM MUTUAL FUND TRUST BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal
	amount		Value
U.S. Treasury Obligations (Cont.)
U.S. Treasury Notes 2.625%, 07/31/2014	$	2,000,000	$	2,029,062
2.375%, 08/31/2014		1,000,000		1,014,727
4.250%, 11/15/2014		1,000,000		1,035,272
4.000%, 02/15/2015		2,000,000		2,084,844
4.125%, 05/15/2015		1,000,000		1,053,203
2.125%, 05/31/2015		5,000,000		5,133,010
4.250%, 08/15/2015		2,000,000		2,127,734
4.500%, 11/15/2015		10,000,000		10,773,050
4.500%, 02/15/2016		10,000,000		10,864,840
2.625%, 04/30/2016		1,000,000		1,049,062
3.250%, 07/31/2016		2,000,000		2,135,782
3.000%, 08/31/2016		1,000,000		1,062,188
2.750%, 05/31/2017		5,000,000		5,293,750
4.250%, 11/15/2017		12,000,000		13,361,256
3.500%, 02/15/2018		9,000,000		9,770,625
3.875%, 05/15/2018		2,000,000		2,204,376
3.750%, 11/15/2018		17,000,000		18,656,174
Total U.S. Treasury Obligations
(cost $87,909,137)				92,605,498
	Shares		Value
Short-term Investments (0.66%)
JPMorgan U.S. Government Money Market Fund		4,486,143	$	4,486,143
Total Short-term Investments
(cost $4,486,143)				4,486,143
TOTAL INVESTMENTS (99.44%)
(cost $681,554,975)				678,685,098
OTHER ASSETS, NET OF LIABILITIES (0.56%)				3,844,278
NET ASSETS (100.00%)			$	682,529,376

(a) Securities exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2013, the value of these securities amounted to $1,983,884 or 0.29% of net assets.

(b) The obligations of these U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corp. (“Freddie Mac”) into conservatorship. The United States Treasury has put in place a set of financing agreements to help ensure that these entities continue to meet their obligations to holders of bonds they have issued or guaranteed.

142 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (96.90%)
Alabama (1.97%)
City of Trussville, Alabama, General Obligation Warrants, Series 2006-A		5.000	%		10/01/2022		Aa2	$	1,000,000	$	1,055,220
City of Tuscaloosa, Alabama, General Obligation Warrants, Series 2010-A		4.750	%		07/01/2024		Aa1		1,025,000		1,137,576
City of Madison (Alabama), General Obligation School Warrants, Series 2009		5.250	%		02/01/2026		Aa2		500,000		546,205
City of Huntsville, Alabama, General Obligation Warrants, Series 2007-A		4.750	%		05/01/2027		Aaa		2,000,000		2,134,840
City of Florence (Alabama), Water and Sewer Revenue Warrants, Series 2011		5.000	%		08/15/2028		A1		940,000		1,013,903
City of Madison (Alabama), General Obligation School Warrants, Series 2009		5.125	%		02/01/2030		Aa2		2,305,000		2,448,048
City of Madison (Alabama), General Obligation School Warrants, Series 2009		5.250	%		02/01/2031		Aa2		1,000,000		1,068,260
											9,404,052
Alaska (0.95%)
Municipality of Anchorage, Alaska, Senior Lien Electric Revenue Bonds, 2009 Series A (Tax-Exempt)		4.000	%		12/01/2020		A+		1,000,000		1,050,940
Municipality of Anchorage, Alaska, Senior Lien Electric Revenue Bonds, 2009 Series A (Tax-Exempt)		5.000	%		12/01/2022		A+		2,220,000		2,359,594
Matanuska-Susitna Borough, Alaska, General Obligation School Bonds, 2009 Series A		5.000	%		07/01/2029		Aa2		1,035,000		1,102,937
											4,513,471
Arizona (8.46%)
City of Glendale, Arizona, General Obligation Refunding Bonds, Series 2010		5.000	%		07/01/2018		A3		1,900,000		2,152,586
Maricopa County, Arizona, Tempe Elementary School District No. 3, School Improvement Bonds, Project of 2005, Series B (2007)		4.500	%		07/01/2021		Aa2		885,000		925,436
Tucson Unified School District No. 1 of Pima County, Arizona, Refunding Bonds, Tax-Exempt Series 2011		5.000	%		07/01/2021		Aa2		1,140,000		1,303,522
Tucson Unified School District No. 1 of Pima County, Arizona, School Improvement Bonds, Project of 2004, Series C (2007)		4.500	%		07/01/2021		A+		1,300,000		1,383,785
City of Phoenix, Civic Improvement Corporation, Senior Lien Wastewater System Revenue Refunding Bonds, Series 2008		5.500	%		07/01/2023		Aa2		1,000,000		1,148,070
Scottsdale Unified School District No. 48 of Maricopa County, Arizona, School Improvement Bonds, Project of 2010, Series B (2012)		4.000	%		07/01/2023		AA		1,000,000		1,044,110
Sedona-Oak Creek Joint Unified School District No. 9 of Coconino and Yavapai Counties, Arizona, School Improvement Bonds, Project of 2007, Series B (2009)		5.000	%		07/01/2023		A+		1,460,000		1,566,346
Tucson Unified School District No. 1 of Pima County, Arizona, Refunding Bonds, Tax-Exempt Series 2011		5.000	%		07/01/2023		Aa2		800,000		901,296
Pima County, Arizona, Sewer System Revenue Obligations, Series 2012A		5.000	%		07/01/2024		A+		1,140,000		1,261,957
Tucson Unified School District No. 1 of Pima County, Arizona, Refunding Bonds, Tax-Exempt Series 2011		4.000	%		07/01/2024		Aa2		300,000		311,388
Peoria Unified School District No. 11 of Maricopa County, Arizona, Refunding Bonds, Series 2012		4.000	%		07/01/2025		Aa3		1,500,000		1,544,685
Phoenix Union High School District No. 210 of Maricopa County, Arizona, School Improvement Bonds, Project of 2011, Tax-Exempt Series A (2012)		4.000	%		07/01/2025		Aa2		1,100,000		1,136,839
Pima County, Arizona, Sewer System Revenue Obligations, Series 2012A		5.000	%		07/01/2025		A+		2,000,000		2,197,040
Scottsdale Unified School District No. 48 of Maricopa County, Arizona, School Improvement Bonds, Project of 2010, Series B (2012)		4.250	%		07/01/2025		AA		2,000,000		2,099,480
Phoenix Union High School District No. 210 of Maricopa County, Arizona, School Improvement Bonds, Project of 2011, Tax-Exempt Series A (2012)		4.000	%		07/01/2026		Aa2		500,000		512,315
Pima County, Arizona, General Obligation Bonds, Series 2012A		4.000	%		07/01/2026		AA-		2,015,000		2,042,565
Pima County, Arizona, Sewer System Revenue Obligations, Series 2012A		5.000	%		07/01/2026		A+		1,725,000		1,879,163
Amphitheater Unified School District No. 10 of Pima County, Arizona, School Improvement Bonds, Project of 2007, Series B (2009) (Bank Qualified)		5.000	%		07/01/2027		A+		2,000,000		2,119,020
City of Phoenix, Arizona, Various Purpose General Obligation Bonds, Series 2012A		4.000	%		07/01/2027		Aa1		2,000,000		2,044,860
Pima County, Arizona, Sewer System Revenue Obligations, Series 2012A		5.000	%		07/01/2027		A+		1,000,000		1,079,570
Pinal County Community College District of Pinal County, Arizona, General Obligation Bonds, Project of 2008, Series B (2012)		4.500	%		07/01/2027		AA-		2,480,000		2,569,354
Paradise Valley Unified School District No. 69 of Maricopa County, Arizona, School Improvement Bonds, Project of 2011 Series A (2012)		4.000	%		07/01/2028		Aa2		4,165,000		4,191,864
Pima County, Arizona, General Obligation Bonds, Series 2013A		4.000	%		07/01/2028		AA-		3,000,000		2,964,210

See accompanying notes to financial statements. 143

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SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Arizona (Cont.)
Paradise Valley Unified School District No. 69 of Maricopa County, Arizona, School Improvement Bonds, Project of 2011 Series A (2012)		4.000	%		07/01/2029		Aa2	$	2,000,000	$	1,995,420
											40,374,881
Arkansas (1.73%)
Beaver Water District of Benton and Washington Counties, Arkansas, Water Refunding Revenue Bonds, Series 2010		4.000	%		11/15/2021		AA+		1,000,000		1,071,150
Conway School District No. 1 of Faulkner County, Arkansas Refunding Bonds (Prerefunded to 02-01-2015 @ 100) (b)		4.000	%		02/01/2022		NR		1,270,000		1,320,406
Springdale School District No. 50 of Washington County, Arkansas Refunding and Construction Bonds, Series A		4.250	%		06/01/2027		Aa2		1,500,000		1,550,970
Cabot School District No. 4 of Lonoke County, Arkansas, Refunding Bonds		3.500	%		02/01/2028		NR		655,000		602,862
Board of Trustees of the University of Arkansas, Various Facility Revenue Bonds (Fayetteville Campus), Series 2012B		5.000	%		11/01/2029		Aa2		1,935,000		2,076,352
Rogers School District No. 30 of Benton County, Arkansas Refunding Bonds		4.000	%		02/01/2031		NR		1,775,000		1,647,413
											8,269,153
California (2.68%)
Moulton-Niguel California, Water District Consolidated Refunding Bonds		5.000	%		09/01/2017		AA		1,395,000		1,418,492
Moulton-Niguel California, Water District Consolidated Refunding Bonds		5.000	%		09/01/2018		AA		450,000		457,276
Grossmont Healthcare District, San Diego County, California, General Obligation Bonds, 2006 Election, 2007 Series A		5.000	%		07/15/2020		Aa2		900,000		998,487
City of Napa (Napa County California) Water Revenue Bonds, Series 2007 (Water System Improvement Projects)		4.500	%		05/01/2022		AA-		560,000		574,907
Santa Barbara County, California, Santa Barbara Schools Financing Authority, 2007 General Obligation Revenue Bonds, Series B		4.750	%		08/01/2024		Aa3		1,000,000		1,065,780
Desert Water Agency Financing Corporation (Water System Improvement Project) Series 2007		4.750	%		05/01/2025		AA		885,000		927,144
Yosemite Community College District, (Stanislaus, Tuolumne, Calaveras, San Joaquin, Santa Clara and Merced Counties, California), Tax-Exempt General Obligation Bonds, Election of 2004, Series 2005A		5.000	%		08/01/2025		AA-		210,000		219,066
Yosemite Community College District, (Stanislaus, Tuolumne, Calaveras, San Joaquin, Santa Clara and Merced Counties, California), Tax-Exempt General Obligation Bonds, Election of 2004, Series 2005A (Prerefunded to 08-01-2015 @ 100) (b)		5.000	%		08/01/2025		Aa2		985,000		1,058,235
State of California, Various Purpose General Obligation Bonds		5.500	%		03/01/2026		A		1,300,000		1,449,903
Desert Water Agency Financing Corporation (Water System Improvement Project) Series 2007		4.750	%		05/01/2026		AA		930,000		969,739
Marin Community College District, (Marin County, California), Election of 2004 General Obligation Bonds, Series C		4.250	%		08/01/2027		AA		1,440,000		1,518,178
Ventura County Community College District (Ventura County, California) Election of 2002 General Obligation Bonds, Series C		5.500	%		08/01/2029		Aa2		1,000,000		1,098,980
Santa Clara Unified School District, (Santa Clara County, California), General Obligation Bonds, Election of 2004, Series 2008		5.000	%		07/01/2030		AA		1,000,000		1,025,660
											12,781,847
Colorado (2.06%)
City of Colorado Springs, Colorado, Utilities System Subordinate Lien Improvement Revenue Bonds, Series 2005B (Prerefunded to 11-15-2015 @ 100) (b)		4.750	%		11/15/2022		Aa2		250,000		270,698
El Paso County School District No. 20 (Academy), El Paso County, Colorado, General Obligation Refunding Bonds, Series 2012		4.000	%		12/15/2022		Aa2		1,000,000		1,077,590
Cherry Creek School District No. 5, (Arapahoe County, Colorado), General Obligation Bonds, Series 2012B		3.000	%		12/15/2024		AA		1,440,000		1,403,136
El Paso County School District No. 20 (Academy), El Paso County, Colorado, General Obligation Refunding Bonds, Series 2012		4.000	%		12/15/2024		Aa2		1,350,000		1,417,514
Jefferson County School District No. R-1, (in Jefferson and Broomfield Counties, Colorado), General Obligation Refunding Bonds, Series 2012		3.500	%		12/15/2024		AA-		1,570,000		1,591,462
Cherry Creek School District No. 5, (Arapahoe County, Colorado), General Obligation Bonds, Series 2009		5.000	%		12/15/2025		AA		1,185,000		1,361,375

144 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Colorado (Cont.)
El Paso County School District No. 20 (Academy), El Paso County, Colorado, General Obligation Refunding Bonds, Series 2012		4.000	%		12/15/2025		Aa2	$	1,385,000	$	1,438,530
City and County of Denver, Colorado, Master Resolution Water Revenue Bonds, Series 2012A		4.000	%		12/15/2026		Aa1		1,230,000		1,258,573
											9,818,878
Connecticut (1.99%)
Town of New Canaan, Connecticut, General Obligation Refunding Bonds, Series C		4.000	%		04/01/2021		Aaa		1,010,000		1,085,548
Town of Darien, Connecticut, General Obligation Refunding Bonds, Issue of 2012, Series B		2.000	%		08/01/2022		Aaa		1,600,000		1,482,384
Town of New Canaan, Connecticut, General Obligation Refunding Bonds, Issue of 2010, Series A		4.000	%		06/15/2023		Aaa		1,230,000		1,289,766
Town of Bethel, Connecticut, General Obligation Bonds, Issue of 2009, Series A		4.000	%		11/15/2026		AA+		950,000		965,152
Town of Bethel, Connecticut, General Obligation Sewer Bonds, Issue of 2009, Series B		4.000	%		11/15/2026		AA+		620,000		629,889
City of Stamford, Connecticut, General Obligation Bonds, Issue of 2013		3.000	%		02/01/2028		Aa1		2,300,000		2,061,260
City of Stamford, Connecticut, General Obligation Bonds, Issue of 2013		3.000	%		02/01/2029		Aa1		2,250,000		1,974,240
											9,488,239
Delaware (1.08%)
The Delaware River and Bay Authority, Revenue Bonds, Refunding Series 2005		5.000	%		01/01/2021		A		1,625,000		1,672,840
New Castle County, Delaware, General Obligation Bonds, Series 2012B		4.000	%		07/15/2026		Aaa		2,045,000		2,125,982
The City of Wilmington, Delaware, General Obligation Bonds, Series of 2008A (Prerefunded to 12-01-2018 @ 100) (b)		5.000	%		12/01/2028		Aa2		1,120,000		1,316,784
The City of Wilmington, Delaware, General Obligation Bonds, Series of 2008A		5.000	%		12/01/2028		AA-		50,000		53,800
											5,169,406
Florida (3.65%)
State of Florida, Department of Transportation, Turnpike Revenue Bonds, Series 2006A		4.200	%		07/01/2021		Aa3		1,500,000		1,581,900
JEA Florida, Electric System Revenue Bonds, Series Three D-1		4.000	%		10/01/2021		AA-		1,000,000		1,030,120
City of Fort Lauderdale, Florida, Water and Sewer Revenue Bonds, Series 2010		4.000	%		03/01/2023		Aa1		765,000		818,864
State of Florida, Department of Transportation, Turnpike Revenue Bonds, Series 2010B		5.000	%		07/01/2024		Aa3		3,130,000		3,481,155
City of Winter Park, Florida, Water and Sewer Refunding and Improvement Revenue Bonds, Series 2009		4.250	%		12/01/2024		AA-		1,000,000		1,036,410
Tohopekaliga Water Authority, Utility System Revenue Refunding Bonds, Series 2011A		5.000	%		10/01/2026		Aa2		400,000		435,808
Coral Springs Improvement District, Subordinate Water and Sewer Revenue Bonds, Series 2007		4.500	%		06/01/2027		NR		1,000,000		1,008,440
City of Tallahassee, Florida, Consolidated Utility Systems Revenue Bonds, Series 2007		5.000	%		10/01/2027		Aa1		1,700,000		1,855,720
State of Florida, State Board of Education, Public Education Capital Outlay Bonds, 2004 Series C		4.750	%		06/01/2029		Aa1		2,000,000		2,083,560
Palm Beach County, Florida, Water and Sewer Revenue Refunding Bonds, Series 2013		5.000	%		10/01/2029		Aaa		1,750,000		1,939,000
Palm Beach County, Florida, Water and Sewer Revenue Refunding Bonds, Series 2013		5.000	%		10/01/2030		Aaa		1,960,000		2,159,881
											17,430,858
Georgia (1.25%)
Upper Oconee Basin Water Authority, Georgia, Revenue Refunding Bonds, Series 2005		5.000	%		07/01/2023		Aa2		1,000,000		1,052,610
Cherokee County Water and Sewerage Authority (Georgia), Water and Sewerage Revenue Bonds, Series 2010		4.000	%		08/01/2023		Aa2		320,000		330,640
Fulton County, Georgia, Water and Sewerage Revenue Refunding Bonds, Series 2011		5.000	%		01/01/2025		Aa3		2,000,000		2,218,480
Spalding County Water and Sewerage Facilities Authority (Georgia), Revenue Bonds, Series 2008		6.125	%		09/01/2028		A1		1,000,000		1,098,690
Fayette County, Georgia, Water Revenue Bonds, Series 2009		4.750	%		10/01/2029		Aa2		1,205,000		1,263,442
											5,963,862
Hawaii (0.46%)
State of Hawaii, Highway Revenue Bonds, Series 2008		6.000	%		01/01/2029		Aa2		2,000,000		2,220,180

See accompanying notes to financial statements. 145

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Idaho (1.12%)
School District No. 271 (Coeur d’Alene), Kootenai County, State of Idaho, General Obligation Bonds, Series 2012B		4.000	%		09/15/2022		Aa2	$	2,280,000	$	2,471,543
Independent School District of Boise City, Ada and Boise Counties, Idaho, General Obligation Bonds, Series 2007		4.750	%		08/01/2024		AA		1,430,000		1,532,846
Bonneville County, State of Idaho, School District No. 91 (Idaho Falls), General Obligation Bonds, Series 2012A		5.000	%		09/15/2028		Aa3		1,220,000		1,340,804
											5,345,193
Illinois (1.06%)
The Illinois State Toll Highway Authority, Toll Highway Senior Priority Revenue Bonds, 2005 Series A		4.125	%		01/01/2020		Aa3		4,900,000		5,061,210
Indiana (0.26%)
City of Fort Wayne, Indiana, Sewage Works Revenue Bonds of 2010		4.500	%		08/01/2025		Aa3		1,000,000		1,058,820
Indiana Housing and Community Development Authority, Single Family Mortgage Revenue Bonds, 2008 Series A		6.250	%		07/01/2033		Aaa		175,000		179,405
											1,238,225
Iowa (2.29%)
City of Des Moines, Iowa, General Obligation Refunding Bonds, Series 2010B, (Urban Renewal)		4.000	%		06/01/2021		Aa1		350,000		371,490
Board of Regents, State of Iowa, Academic Building Revenue Bonds, Series S.U.I. 2012 (The State University of Iowa)		3.000	%		07/01/2022		AA		1,510,000		1,506,633
City of Des Moines, Iowa, General Obligation Refunding Bonds, Series 2010B, (Urban Renewal)		4.000	%		06/01/2023		Aa1		1,410,000		1,479,724
City of Des Moines, Iowa, General Obligation Bonds, Series 2008D		4.250	%		06/01/2025		Aa1		1,015,000		1,063,344
Board of Regents, State of Iowa, Academic Building Revenue Bonds, Series S.U.I. 2008 (The State University of Iowa)		4.750	%		07/01/2028		AA		1,785,000		1,893,635
Ankeny Community School District, Polk County, Iowa, General Obligation School Bonds, Series 2009		5.000	%		06/01/2029		Aa3		1,270,000		1,347,508
Des Moines Metropolitan, Wastewater Reclamation Authority, Sewer Revenue Refunding Bonds, Series 2013B		4.000	%		06/01/2030		Aa3		3,400,000		3,272,976
											10,935,310
Kansas (3.39%)
City of Wichita, Kansas, General Obligation Bonds, Series 790 (Prerefunded to 09-01-2014 @ 101) (b)		4.375	%		09/01/2020		Aa1		620,000		643,070
Unified School District No. 512, Johnson County, Kansas, (Shawnee Mission), General Obligation Refunding Bonds, Series 2012-A		2.000	%		10/01/2022		Aaa		4,465,000		4,046,942
Unified School District No. 512, Johnson County, Kansas, (Shawnee Mission), General Obligation School Bonds, Series 2005-C (Prerefunded to 10-01-2014 @ 100) (b)		4.250	%		10/01/2022		Aaa		4,265,000		4,393,590
Unified School District No. 512, Johnson County, Kansas, (Shawnee Mission), General Obligation School Bonds, Series 2005-C (Prerefunded to 10-01-2014 @ 100) (b)		5.000	%		10/01/2025		Aaa		1,000,000		1,035,670
Johnson County, Kansas, Internal Improvement Bonds, Series 2008A		4.750	%		09/01/2027		Aaa		1,840,000		1,968,266
Johnson County, Kansas, Internal Improvement Bonds, Series 2008A		4.750	%		09/01/2028		Aaa		2,460,000		2,617,219
City of Wichita, Kansas, Water and Sewer Utility Revenue Bonds, Series 2009A		5.000	%		10/01/2030		AA-		1,400,000		1,489,488
											16,194,245
Kentucky (1.70%)
Boone-Florence Water Commission (Kentucky), Water Supply System Refunding Revenue Bonds, Series 2010		3.250	%		12/01/2019		Aa3		510,000		536,306
Northern Kentucky University, General Receipts Bonds, 2007 Series A		4.300	%		09/01/2025		A1		2,700,000		2,735,397
Louisville/Jefferson County Metro Government, General Obligation Bonds, Series 2006A		4.250	%		11/01/2025		Aa1		1,000,000		1,055,600
Northern Kentucky University, General Receipts Bonds, 2007 Series A		4.300	%		09/01/2026		A1		2,545,000		2,563,706
Northern Kentucky Water District Revenue Bonds, 2013 Series A		4.125	%		02/01/2031		Aa3		1,255,000		1,208,000
											8,099,009

146 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Louisiana (0.30%)
Parish-Wide School District of Ascension Parish, Louisiana, General Obligation School Bonds, Series 2013		3.000	%		03/01/2025		AA-	$	1,390,000	$	1,304,306
Parish-Wide School District of Ascension Parish, Louisiana, General Obligation School Bonds, Series 2013		3.000	%		03/01/2026		AA-		160,000		145,816
											1,450,122
Maine (0.18%)
Town of Gorham, Maine, 2012 General Obligation Refunding Bonds		4.000	%		11/01/2022		Aa2		815,000		877,771
Maryland (1.49%)
Howard County, Maryland, Consolidated Public Improvement Bonds, 2012 Series A		4.000	%		02/15/2023		Aaa		1,845,000		1,967,545
Washington Suburban Sanitary District, Maryland, Water Supply Bonds of 2005 (Prerefunded to 06-01-2015 @ 100) (b)		5.000	%		06/01/2023		Aaa		1,000,000		1,066,760
State of Maryland, General Obligation Bonds, State and Local Facilities Loan of 2012, Second Series B, Tax-Exempt Bonds		2.250	%		08/01/2023		Aaa		1,400,000		1,275,190
Howard County, Maryland, Metropolitan District Bonds, 2012 Series A		4.000	%		02/15/2032		Aaa		2,790,000		2,782,774
											7,092,269
Massachusetts (0.99%)
Town of Carlisle, Massachusetts, General Obligation Municipal Purpose Loan of 2012 Bonds, Unlimited Tax		3.000	%		11/15/2025		Aa1		565,000		537,891
Town of Carlisle, Massachusetts, General Obligation Municipal Purpose Loan of 2012 Bonds, Unlimited Tax		3.000	%		11/15/2026		Aa1		565,000		522,026
Town of Carlisle, Massachusetts, General Obligation Municipal Purpose Loan of 2012 Bonds, Unlimited Tax		3.000	%		11/15/2027		Aa1		565,000		505,489
The Commonwealth of Massachusetts, General Obligation Bonds, Consolidated Loan of 2014, Series A (c)		5.000	%		12/01/2034		Aa1		1,000,000		1,056,790
The Commonwealth of Massachusetts, Commonwealth Transportation Fund Revenue Bonds, (Accelerated Bridge Program), 2013 Series A		5.000	%		06/01/2035		Aaa		2,000,000		2,127,120
											4,749,316
Michigan (4.33%)
Traverse City Area Public Schools, Counties of Grand Traverse, Leelanau and Benzie, State of Michigan, 2010 School Building and Site Bonds (General Obligation - Unlimited Tax)		3.500	%		05/01/2020		AA		1,000,000		1,061,180
City of Petoskey, County of Emmet, State of Michigan, Water Supply and Sewage Disposal System Revenue and Revenue Refunding Bonds, Series 2011		5.000	%		02/01/2023		AA-		720,000		771,264
City of Petoskey, County of Emmet, State of Michigan, Water Supply and Sewage Disposal System Revenue and Revenue Refunding Bonds, Series 2011		5.000	%		02/01/2024		AA-		225,000		239,157
East Grand Rapids Public Schools, County of Kent, State of Michigan, 2012 Refunding Bonds, (General Obligation - Unlimited Tax)		4.000	%		05/01/2024		AA		1,625,000		1,675,359
Forest Hills Public Schools County of Kent, State of Michigan, 2007 School Building and Site Bonds (General Obligation - Unlimited Tax)		4.750	%		05/01/2024		AA		1,000,000		1,062,820
Howell Public Schools, County of Livingston, State of Michigan, 2012 Refunding Bonds, (General Obligation - Unlimited Tax)		4.250	%		05/01/2025		A+		2,760,000		2,861,816
East Grand Rapids Public Schools, County of Kent, State of Michigan, 2012 Refunding Bonds, (General Obligation - Unlimited Tax)		4.000	%		05/01/2027		AA		1,600,000		1,599,936
Plymouth-Canton Community Schools, Counties of Wayne and Washtenaw, State of Michigan, 2012 Refunding Bonds, Series A, (General Obligation - Unlimited Tax)		4.000	%		05/01/2027		Aa2		4,240,000		4,166,690
Birmingham Public Schools, County of Oakland, State of Michigan, 2013 Refunding Bonds, (General Obligation - Unlimited Tax)		4.000	%		05/01/2029		AA+		3,545,000		3,540,817
Plymouth-Canton Community Schools, Counties of Wayne and Washtenaw, State of Michigan, 2013 School Building and Site Bonds, Series A, (General Obligation - Unlimited Tax)		4.000	%		05/01/2032		A+		2,900,000		2,761,989

See accompanying notes to financial statements. 147

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Michigan (Cont.)
Plymouth-Canton Community Schools, Counties of Wayne and Washtenaw, State of Michigan, 2013 School Building and Site Bonds, Series A, (General Obligation - Unlimited Tax)		4.000	%		05/01/2033		A+	$	1,000,000	$	943,260
											20,684,288
Minnesota (1.33%)
Independent School District No. 277 (Westonka), Minnesota, General Obligation School Building Bonds, Series 2012A		2.000	%		02/01/2022		Aa2		1,605,000		1,498,942
State of Minnesota, General Obligation State Various Purpose Bonds, Series 2009H		4.500	%		11/01/2024		Aa1		1,000,000		1,107,230
City of Rochester, Minnesota, General Obligation Waste Water Revenue Refunding Bonds, Series 2012A		4.000	%		02/01/2026		Aaa		2,500,000		2,637,675
Independent School District No. 276, Minnetonka, Minnesota, General Obligation Refunding Bonds, Series 2013H		4.000	%		02/01/2026		Aaa		500,000		520,870
State of Minnesota, General Obligation State Trunk Highway Bonds, Series 2012B		3.000	%		08/01/2026		Aa1		600,000		571,578
											6,336,295
Mississippi (0.90%)
Mississippi Development Bank, Special Obligation Bonds, Series 2010A, (City of Jackson, Mississippi General Obligation Refunding Project)		3.000	%		03/01/2019		AA-		400,000		417,488
Mississippi Development Bank, Special Obligation Bonds, Series 2010A, (City of Jackson, Mississippi General Obligation Refunding Project)		5.000	%		03/01/2020		AA-		1,000,000		1,144,790
Mississippi Development Bank, Special Obligation Bonds, Series 2010A, (City of Jackson, Mississippi General Obligation Refunding Project)		5.000	%		03/01/2021		AA-		1,000,000		1,129,550
Madison County School District, Madison County, Mississippi, General Obligation Refunding Bonds, Series 2012		4.000	%		04/15/2023		AA-		1,480,000		1,599,066
											4,290,894
Missouri (1.91%)
Missouri State Improvement and Energy Water Pollution Revenue, Series 2000B		5.625	%		07/01/2016		Aaa		500,000		501,555
Parkway C-2 School District, St. Louis County, Missouri, General Obligation Refunding and Improvement Bonds, Series 2009		4.625	%		03/01/2025		AAA		1,000,000		1,060,900
School District of the City of Ladue, St. Louis County, Missouri, General Obligation Refunding and Improvement Bonds, Series 2007		5.000	%		03/01/2025		AAA		1,000,000		1,091,430
The School District of Columbia, Boone County, State of Missouri, General Obligation Refunding and Improvement Bonds, Series 2012		4.000	%		03/01/2026		Aa1		2,490,000		2,601,029
Joplin Schools, Joplin, Missouri, General Obligation School Building Bonds, (Missouri Direct Deposit Program), Series 2012		4.000	%		03/01/2028		A+		2,750,000		2,767,022
The School District of Springfield R-XII, Springfield, Missouri, General Obligation School Building Bonds, (Missouri Direct Deposit Program), Series 2013		5.000	%		03/01/2032		AA		1,000,000		1,077,610
											9,099,546
Montana (0.53%)
State of Montana, General Obligation Bonds, (Drinking Water State Revolving Fund Program), Series 2005F		4.750	%		07/15/2018		AA		315,000		332,482
School District No. 7 (Bozeman), Gallatin County, Montana, General Obligation School Building Bonds, Series 2013		3.000	%		06/01/2022		Aa3		300,000		301,104
School District No. 7 (Bozeman), Gallatin County, Montana, General Obligation School Building Bonds, Series 2013		4.000	%		06/01/2023		Aa3		380,000		405,722
City of Billings, Montana, General Obligation Bonds, Series 2012		4.000	%		07/01/2026		Aa2		265,000		272,656
City of Billings, Montana, General Obligation Bonds, Series 2012		4.000	%		07/01/2027		Aa2		525,000		535,631
City of Billings, Montana, General Obligation Bonds, Series 2012		4.000	%		07/01/2028		Aa2		655,000		660,947
											2,508,542
Nebraska (1.41%)
Douglas County School District 0010, (Elkhorn Public Schools), General Obligation Refunding Bonds, Series 2011		4.000	%		12/15/2021		AA-		1,140,000		1,230,128

148 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Nebraska (Cont.)
Douglas County School District 0010, (Elkhorn Public Schools), General Obligation Refunding Bonds, Series 2011		5.000	%		12/15/2027		AA-	$	1,850,000	$	1,981,387
Omaha Public Power District (Nebraska) Electric System Revenue Bonds, 2008 Series A		5.500	%		02/01/2028		Aa2		1,500,000		1,643,820
Douglas County School District 0010, (Elkhorn Public Schools), General Obligation Bonds, Series 2012B		4.000	%		01/15/2030		AA-		1,930,000		1,876,481
											6,731,816
New Hampshire (0.11%)
New Hampshire Municipal Bond Bank, 2007 Series B Bonds		4.750	%		08/15/2024		A1		500,000		524,805
New Jersey (4.98%)
Passaic Valley Sewer Commissioners, State of New Jersey, Sewer System Bonds, Series F		5.000	%		12/01/2018		A2		1,300,000		1,303,029
Township of Parsippany-Troy Hills, In the County of Morris, New Jersey, General Obligation Bonds		2.750	%		11/01/2019		AA		785,000		805,018
Township of Parsippany-Troy Hills, In the County of Morris, New Jersey, General Obligation Bonds		3.000	%		11/01/2020		AA		1,550,000		1,595,152
The Board of Education of the Township of South Brunswick in the County of Middlesex, New Jersey, Refunding School Bonds		3.000	%		12/01/2021		AA		580,000		591,896
Middlesex County Improvement Authority, (County of Middlesex, State of New Jersey), County-Guaranteed Open Space Trust Fund Revenue Bonds, Series 2009A		4.000	%		12/15/2021		Aa2		1,205,000		1,279,650
The Board of Education of the Township of South Brunswick in the County of Middlesex, New Jersey, Refunding School Bonds		4.000	%		12/01/2023		AA		175,000		185,514
The County of Morris, New Jersey, General Obligation Bonds, Series 2012 B		2.000	%		12/15/2023		Aaa		1,045,000		932,370
The Board of Education of the Borough of Haddon Heights in the County of Camden, New Jersey, Refunding School Bonds		3.000	%		01/01/2024		AA-		715,000		684,677
The Board of Education of the Warren Hills Regional School District in the County of Warren, New Jersey, Refunding School Bonds, Series 2012		4.000	%		02/15/2024		AA		1,390,000		1,440,679
Township of Parsippany-Troy Hills, In the County of Morris, New Jersey, General Obligation Refunding Bonds, Series 2012		4.000	%		07/15/2024		AA		370,000		385,484
The Board of Education of the Borough of Haddon Heights in the County of Camden, New Jersey, Refunding School Bonds		3.000	%		01/01/2025		AA-		835,000		786,470
The Board of Education of the Township of North Brunswick in the County of Middlesex, New Jersey, Refunding School Bonds		4.250	%		01/15/2025		AA		2,200,000		2,300,518
Township of Parsippany-Troy Hills, In the County of Morris, New Jersey, General Obligation Refunding Bonds, Series 2012		4.000	%		07/15/2025		AA		1,390,000		1,431,561
The Board of Education of the Borough of Haddon Heights in the County of Camden, New Jersey, Refunding School Bonds		3.000	%		01/01/2026		AA-		555,000		511,455
The Board of Education of the Warren Hills Regional School District in the County of Warren, New Jersey, Refunding School Bonds, Series 2012		4.000	%		02/15/2026		AA		1,485,000		1,509,681
The Board of Education of the Township of Bernards in the County of Somerset, New Jersey, Refunding School Bonds, Series 2013		4.000	%		07/15/2026		AA+		850,000		883,490
Refunding School Bonds, Series 2012 B, The Board of Education of the Borough of Madison, in the County of Morris, New Jersey		4.000	%		12/15/2026		AA		1,440,000		1,467,130
The Board of Education of the Somerset Hills School District in the County of Somerset, New Jersey, Refunding School Bonds, Series 2012		4.000	%		03/15/2027		Aa1		1,110,000		1,133,321
The Board of Education of the Township of Wyckoff in the County of Bergen, New Jersey, Refunding School Bonds		4.000	%		04/01/2027		AA+		1,415,000		1,442,352
The Board of Education of the Township of Bernards in the County of Somerset, New Jersey, Refunding School Bonds, Series 2013		4.000	%		07/15/2027		AA+		630,000		645,567
Refunding School Bonds, Series 2012 B, The Board of Education of the Borough of Madison, in the County of Morris, New Jersey		4.000	%		12/15/2027		AA		1,495,000		1,508,425
The Board of Education of the Somerset Hills School District in the County of Somerset, New Jersey, Refunding School Bonds, Series 2012		4.000	%		03/15/2028		Aa1		920,000		931,518
											23,754,957

See accompanying notes to financial statements. 149

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
New Mexico (1.86%)
Santa Fe Public School District, Santa Fe County, New Mexico, General Obligation Bonds, Series 2012		3.000	%		08/01/2022		AA	$	1,850,000	$	1,849,982
Las Cruces School District No. 2, General Obligation School Building Bonds, Series 2011A		4.000	%		08/01/2023		Aa2		1,700,000		1,787,278
Albuquerque Bernalillo County Water Utility Authority, Joint Water and Sewer System Improvement Revenue Bonds, Series 2005		4.400	%		07/01/2024		Aa2		1,000,000		1,030,803
City of Albuquerque, New Mexico, General Obligation General Purpose Bonds, Series 2012A		4.000	%		07/01/2024		Aa1		2,500,000		2,623,925
City of Santa Fe, New Mexico, Water Utility System / Capital Outlay Gross Receipts Tax Revenue Bonds, Series 2009A (Tax-Exempt)		5.000	%		06/01/2025		AA+		470,000		504,658
Albuquerque Bernalillo County Water Utility Authority, Joint Water and Sewer System Improvement Revenue Bonds, Series 2008A		5.000	%		07/01/2030		Aa2		1,000,000		1,074,230
											8,870,876
New York (2.16%)
New York State Thruway Authority, Second General Highway and Bridge Trust Fund Bonds, Series 2005B		5.000	%		04/01/2021		AA		1,000,000		1,073,340
County of Saratoga, New York, Public Improvement (Serial) Bonds, Series 2010B		4.000	%		07/15/2021		AA		430,000		446,508
County of Suffolk, New York, Public Improvement Serial Bonds - 2009 Series C		4.000	%		10/15/2021		A2		1,000,000		1,041,360
East Hampton Union Free School District, Suffolk County, New York, School District Serial Bonds - 2009		4.000	%		06/15/2022		Aa1		1,285,000		1,351,794
Miller Place Union Free School District in the Town of Brookhaven, Suffolk County, New York, School District Serial Bonds - 2010		4.000	%		02/15/2025		Aa2		685,000		707,831
County of Saratoga, New York, Public Improvement (Serial) Bonds, Series 2010B		4.000	%		07/15/2025		AA		510,000		517,385
County of Suffolk, New York, Public Improvement Serial Bonds - 2008 Series B		5.000	%		11/01/2027		A2		1,000,000		1,046,140
The Port Authority of New York and New Jersey Consolidated Bonds, One Hundred Fifty-Third Series		4.750	%		07/15/2030		Aa3		1,000,000		1,028,250
County of Saratoga, New York, General Obligations, Public Improvement (Serial) Bonds, Series 2009A		4.750	%		07/15/2031		AA		950,000		1,001,404
County of Saratoga, New York, General Obligations, Public Improvement (Serial) Bonds, Series 2009A		4.750	%		07/15/2032		AA		995,000		1,045,009
The Port Authority of New York and New Jersey Consolidated Bonds, One Hundred Seventy-Ninth Series		5.000	%		12/01/2032		Aa3		1,000,000		1,065,900
											10,324,921
North Carolina (3.42%)
County of Orange, North Carolina, General Obligation Refunding Bonds, Series 2011		3.000	%		02/01/2020		Aa1		600,000		635,940
City of Fayetteville, North Carolina, Public Works Commission, Revenue Refunding Bonds, Series 2009A		5.000	%		03/01/2024		Aa2		1,355,000		1,507,383
County of Wake, North Carolina, General Obligation Public Improvement Bonds, Series 2011		4.000	%		04/01/2024		Aaa		2,000,000		2,131,960
City of Charlotte, North Carolina, General Obligation Refunding Bonds, Series 2009B		4.000	%		06/01/2024		Aaa		1,265,000		1,333,550
State of North Carolina, General Obligation Public Improvement Bonds, Series 2010A		4.000	%		05/01/2026		Aaa		1,000,000		1,070,310
City of Charlotte, North Carolina, Water and Sewer System Revenue Bonds, Series 2009B		4.250	%		07/01/2026		Aaa		1,500,000		1,602,465
City of Durham, North Carolina, General Obligation Bonds, Series 2012A		3.000	%		07/01/2026		Aaa		230,000		220,630
City of Asheville, North Carolina, Water System Revenue Bonds, Series 2007		4.750	%		08/01/2026		Aa2		195,000		202,642
City of Raleigh, North Carolina, General Obligation Public Improvement Bonds, Series 2012B		4.000	%		04/01/2027		Aaa		4,000,000		4,144,880
City of Charlotte, North Carolina, Water and Sewer System Revenue Bonds, Series 2009B		5.000	%		07/01/2027		Aaa		1,500,000		1,673,745
City of Asheville, North Carolina, Water System Revenue Bonds, Series 2007		4.750	%		08/01/2027		Aa2		300,000		310,434
City of Durham, North Carolina, General Obligation Bonds, Series 2012A		3.000	%		07/01/2028		Aaa		455,000		422,049
City of Charlotte, North Carolina, Water and Sewer System Revenue Bonds, Series 2008		5.000	%		07/01/2038		Aaa		1,000,000		1,040,690
											16,296,678
North Dakota (0.28%)
West Fargo Public School District No. 6, Cass County, North Dakota, General Obligation School Building Bonds, Series 2011		4.000	%		05/01/2026		Aa3		1,300,000		1,328,132

150 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Ohio (3.74%)
Board of Education Indian Hill Exempted Village School District, County of Hamilton, Ohio, School Improvement Refunding Bonds, Series 2006		4.375	%		12/01/2022		Aaa	$	750,000	$	791,610
Board of Education, City School District of the City of Cincinnati, County of Hamilton, Ohio, Classroom Facilities Construction and Improvement Refunding Bonds, Series 2006 (Voted General Obligation Unlimited Tax)		5.250	%		12/01/2022		AA-		1,000,000		1,167,110
Columbus City School District, Franklin County, Ohio, School Facilities Construction and Improvement Bonds, Series 2009-B (General Obligation - Unlimited Tax)		5.000	%		12/01/2023		Aa2		1,000,000		1,149,600
State of Ohio, Common Schools General Obligation Bonds, Series 2006D		4.300	%		09/15/2025		Aa1		2,500,000		2,601,125
South-Western City School District, Franklin and Pickaway Counties, Ohio, School Facilities Construction and Improvement Bonds, Series 2012 (General Obligation - Unlimited Tax)		4.000	%		12/01/2025		AA-		1,315,000		1,357,672
Miami University, (A State University of Ohio), General Receipts Revenue and Refunding Bonds, Series 2011		5.000	%		09/01/2026		Aa3		1,000,000		1,097,080
City of Columbus, Ohio, General Obligation Bonds, Various Purpose Unlimited Tax Bonds, Series 2012A		4.000	%		02/15/2027		Aaa		1,500,000		1,537,350
Plain Local School District (Stark County), Ohio, General Obligation (Unlimited Tax), School Improvement Refunding Bonds, Series 2011A		4.500	%		11/01/2027		AA-		2,000,000		2,058,400
City of Cincinnati, Ohio, Water System Revenue Bonds, Series 2012A		4.000	%		12/01/2028		Aaa		2,520,000		2,523,301
Olentangy Local School District, Delaware and Franklin Counties, Ohio, Refunding Bonds, Series 2013B, (Tax-Exempt), (General Obligation-Unlimited Tax)		4.000	%		12/01/2028		Aa1		1,870,000		1,886,718
Olentangy Local School District, Delaware and Franklin Counties, Ohio, Refunding Bonds, Series 2013B, (Tax-Exempt), (General Obligation-Unlimited Tax)		4.000	%		12/01/2029		Aa1		1,680,000		1,681,193
											17,851,159
Oklahoma (1.32%)
City of Tulsa, Oklahoma, General Obligation Bonds, Series 2013		4.000	%		03/01/2023		AA		2,500,000		2,668,625
Oklahoma Turnpike Authority, Oklahoma Turnpike System, Second Senior Revenue Bonds, Series 2011B		5.000	%		01/01/2026		Aa3		1,000,000		1,098,750
City of Tulsa, Oklahoma, General Obligation Bonds, Series 2008		4.750	%		05/01/2026		AA		1,165,000		1,244,500
City of Oklahoma City, Oklahoma, General Obligation Bonds, Series 2008		5.000	%		03/01/2027		Aaa		400,000		430,736
Oklahoma Turnpike Authority, Oklahoma Turnpike System, Second Senior Revenue Bonds, Series 2011B		5.000	%		01/01/2028		Aa3		770,000		836,058
											6,278,669
Oregon (2.47%)
City of Portland, Oregon, First Lien Water System Revenue and Refunding Bonds, 2010 Series A (Tax Exempt)		4.000	%		05/01/2021		Aaa		1,070,000		1,159,345
City of Portland, Oregon, Second Lien Sewer System Revenue and Refunding Bonds, 2008 Series B		5.000	%		06/15/2022		Aa3		1,825,000		2,066,520
City of Portland, Oregon, Second Lien Sewer System Revenue and Refunding Bonds, 2008 Series B		5.000	%		06/15/2023		Aa3		1,375,000		1,551,344
City of Portland, Oregon, First Lien Water System Revenue Bonds, 2011 Series A		4.000	%		05/01/2024		Aaa		1,500,000		1,574,700
State of Oregon, State Board of Higher Education, General Obligation Bonds, 2007 Series F (Tax Exempt)		4.625	%		08/01/2024		Aa1		570,000		610,390
State of Oregon, State Board of Higher Education, General Obligation Bonds, 2007 Refunding Series G (Tax Exempt)		4.625	%		08/01/2024		Aa1		330,000		353,384
State of Oregon, State Board of Higher Education, General Obligation Bonds, 2009 Series A (Prerefunded to 08-01-2018 @ 100) (b)		5.750	%		08/01/2024		Aa1		575,000		692,409
Oregon Trail School District No. 46, Clackamas County, Oregon, General Obligation Bonds, Series 2009		5.000	%		06/15/2029		A+		1,000,000		1,067,680
State of Oregon, State Board of Higher Education, General Obligation Bonds, 2009 Series A (Prerefunded to 08-01-2018 @ 100) (b)		5.750	%		08/01/2029		Aa1		940,000		1,131,939
State of Oregon, General Obligation Bonds, 2012 Series I, (ODOT Project - Tax-Exempt)		5.000	%		05/01/2037		Aa1		1,500,000		1,584,585
											11,792,296
Pennsylvania (2.75%)
County of Berks, Pennsylvania, General Obligation Bonds, Series of 2013		5.000	%		11/15/2025		Aa1		860,000		951,925

See accompanying notes to financial statements. 151

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Pennsylvania (Cont.)
Township of Cranberry, Butler County, Pennsylvania, General Obligation Bonds, Series of 2011		4.500	%		03/01/2026		Aa2	$	2,575,000	$	2,698,497
County of Chester, Commonwealth of Pennsylvania, General Obligation Bonds, Series of 2011		4.000	%		11/15/2026		Aaa		1,465,000		1,532,390
County of Berks, Pennsylvania, General Obligation Bonds, Series of 2013		5.000	%		11/15/2027		Aa1		950,000		1,038,702
County of Berks, Pennsylvania, General Obligation Bonds, Series of 2013		5.000	%		11/15/2028		Aa1		995,000		1,080,301
Township of Hampden, (Cumberland County, Pennsylvania), General Obligation Bonds, Series of 2012		5.000	%		05/15/2029		AA		1,180,000		1,284,159
County of Northampton, Commonwealth of Pennsylvania, General Obligation Bonds, Series B of 2012 (Tax-Exempt)		5.000	%		10/01/2030		AA		1,500,000		1,606,245
Township of Hampden, (Cumberland County, Pennsylvania), General Obligation Bonds, Series of 2012		5.000	%		05/15/2031		AA		1,055,000		1,135,465
Township of Hampden, (Cumberland County, Pennsylvania), General Obligation Bonds, Series of 2012		5.000	%		05/15/2032		AA		1,660,000		1,778,292
											13,105,976
Rhode Island (0.78%)
State of Rhode Island and Providence Plantations, General Obligation Bonds, Consolidated Capital Development Loan of 2007, Series A		4.750	%		08/01/2024		Aa2		1,000,000		1,077,240
Town of Westerly, Rhode Island, General Obligation Refunding Bonds, 2012 Series B		4.000	%		08/15/2024		Aa2		2,050,000		2,090,406
Rhode Island Clean Water Finance Agency, Water Pollution Control Revolving Fund Revenue Bonds, Series 2007 A (Pooled Loan Issue)		4.750	%		10/01/2025		Aaa		500,000		538,205
											3,705,851
South Carolina (4.89%)
Renewable Water Resources, South Carolina, Sewer System Refunding Revenue Bonds, Series 2012		5.000	%		01/01/2024		Aa3		2,500,000		2,803,675
School District of Beaufort County, South Carolina, General Obligation Refunding Bonds, Series 2012B		4.000	%		03/01/2024		AA		1,800,000		1,903,968
City of Columbia, South Carolina, Waterworks and Sewer System Revenue Bonds, Series 2010		4.500	%		02/01/2025		AA		1,020,000		1,103,711
School District No. 1 of Richland County, South Carolina, General Obligation Bonds, Series 2006B		4.450	%		03/01/2025		Aa2		1,500,000		1,584,105
Fort Mill School District No. 4 of York County, South Carolina, General Obligation Advanced Refunding Bonds, Series 2012A		4.000	%		03/01/2026		AA-		2,620,000		2,751,052
South Carolina Public Service Authority, Revenue Obligations, Series 2008, Tax-Exempt Series A		5.375	%		01/01/2028		A1		3,500,000		3,833,060
Fort Mill School District No. 4 of York County, South Carolina, General Obligation Advanced Refunding Bonds, Series 2012A		4.000	%		03/01/2028		AA-		2,850,000		2,936,212
Fort Mill School District No. 4 of York County, South Carolina, General Obligation Bonds, Series 2013A		4.000	%		03/01/2028		AA-		1,525,000		1,573,388
City of Columbia, South Carolina, Waterworks and Sewer System Refunding Revenue Bonds, Series 2012		5.000	%		02/01/2030		AA		1,000,000		1,082,700
Spartanburg Sanitary Sewer District, South Carolina, Sewer System Refunding Convertible Bonds, Series 2013B		5.000	%		03/01/2032		A1		3,585,000		3,742,668
											23,314,539
South Dakota (0.19%)
Harrisburg School District No. 41-2, Lincoln County, South Dakota, General Obligation Refunding Bonds, Series 2012		2.375	%		01/15/2021		AA-		910,000		899,226
Tennessee (3.32%)
City of Knoxville, Tennessee, Water System Revenue Bonds, Series U-2009		4.000	%		03/01/2022		Aa2		175,000		186,652
Wilson County, Tennessee, General Obligation Refunding Bonds, Series 2012		5.000	%		04/01/2023		AA		2,000,000		2,277,620
Tennessee State School Bond Authority, Higher Educational Facilities, Second Program Bonds, 2008 Series B		4.750	%		05/01/2023		AA		1,000,000		1,082,170
The Hallsdale-Powell Utility District of Knox County, Tennessee, Waterworks and Sewer Revenue Refunding Bonds, Series 2013		3.000	%		04/01/2025		AA		1,985,000		1,881,661

152 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Tennessee (Cont.)
The Metropolitan Government of Nashville and Davidson County (Tennessee), General Obligation Refunding Bonds, Series 2012		4.000	%		07/01/2025		AA	$	1,000,000	$	1,044,700
State of Tennessee, General Obligation Bonds, 2012 Refunding Series A		4.000	%		08/01/2025		AA+		5,000,000		5,321,050
State of Tennessee, General Obligation Bonds, 2007 Series A (Prerefunded to 10-01-2015 @ 100) (b)		4.500	%		10/01/2025		AA+		425,000		456,424
City of Chattanooga, Tennessee, General Obligation Refunding Bonds, Series 2007A		4.750	%		03/01/2026		AAA		2,250,000		2,353,972
The Metropolitan Government of Nashville and Davidson County (Tennessee), Electric System Revenue Bonds, 2008 Series A		4.750	%		05/15/2026		AA+		1,175,000		1,251,951
											15,856,200
Texas (2.52%)
City of Austin, Texas, (Travis and Williamson Counties), Water and Wastewater System Revenue Refunding Bonds, Series 2009A		5.000	%		11/15/2026		Aa2		2,000,000		2,184,140
Trinity River Authority of Texas, (Tarrant County Water Project) Improvement Revenue Bonds, Series 2008		5.750	%		02/01/2027		Aa3		1,500,000		1,670,265
Carrollton-Farmers Branch Independent School District (Dallas and Denton Counties, Texas), Unlimited Tax School Building and Refunding Bonds, Series 2012		4.000	%		02/15/2028		AA		2,000,000		1,991,380
New Braunfels Independent School District, (A political subdivision of the State of Texas located in Comal and Guadalupe Counties, Texas), Unlimited Tax School Building Bonds, Series 2008		5.000	%		02/01/2029		AA		900,000		921,861
Lake Travis Independent School District, Unlimited Tax School Building Bonds, Series 2012		5.000	%		02/15/2029		AA+		2,365,000		2,569,596
Carrollton-Farmers Branch Independent School District (Dallas and Denton Counties, Texas), Unlimited Tax School Building Bonds, Series 2013A		4.000	%		02/15/2030		AA		1,000,000		990,580
Lake Travis Independent School District, Unlimited Tax School Building Bonds, Series 2012		5.000	%		02/15/2031		AA+		1,565,000		1,690,200
											12,018,022
Utah (0.81%)
West Jordan Utah, General Obligation Bonds (Prerefunded to 04-01-2014 @ 100) (b)		5.250	%		04/01/2022		NR		680,000		688,099
Board of Education of Canyons School District, Utah, General Obligation Bonds, (Utah School Bond Guaranty Program), Series 2011		4.000	%		06/15/2023		Aaa		1,000,000		1,074,600
Board of Education of Alpine School District, Utah County, Utah, General Obligation School Building and Refunding Bonds, (Utah School Bond Guaranty Program), Series 2012B		3.000	%		03/15/2024		Aa1		500,000		496,510
Board of Education of Canyons School District, Utah, General Obligation Bonds, (Utah School Bond Guaranty Program), Series 2012		3.500	%		06/15/2026		Aaa		475,000		478,111
Weber Basin Water Conservancy District, Water Revenue Bonds, Series 2013B		4.250	%		04/01/2033		AA+		1,195,000		1,126,299
											3,863,619
Virginia (3.68%)
Fairfax County Water Authority, Water Refunding Revenue Bonds, Series 1997		5.000	%		04/01/2021		Aaa		900,000		1,030,032
City of Salem, Virginia General Obligation Public Improvement Refunding Bonds Series 2007A		4.500	%		01/01/2023		Aa3		520,000		544,762
General Obligation Public Improvement and Refunding Bonds, Series 2007 of the City of Hampton, Virginia		4.375	%		01/15/2023		Aa1		1,550,000		1,640,660
Virginia Public School Authority, Special Obligation School Financing Bonds, Prince William County Series 2012		4.500	%		07/15/2024		Aaa		3,285,000		3,584,625
Virginia Public School Authority, School Financing Bonds (1997 Resolution), Series 2006 A		4.500	%		08/01/2024		Aa1		1,000,000		1,051,750
Loudoun County, Virginia, General Obligation Public Improvement Bonds, Series 2011A		4.000	%		12/01/2026		Aaa		1,395,000		1,449,628
City of Norfolk, Virginia, Water Revenue Bonds, Series 2013		5.000	%		11/01/2029		Aa2		1,790,000		1,935,545
City of Norfolk, Virginia, Water Revenue Bonds, Series 2013		5.000	%		11/01/2030		Aa2		1,880,000		2,021,639
City of Norfolk, Virginia, Water Revenue Bonds, Series 2013		5.000	%		11/01/2031		Aa2		1,975,000		2,112,065
City of Norfolk, Virginia, Water Revenue Bonds, Series 2013		5.000	%		11/01/2032		Aa2		2,075,000		2,208,132
											17,578,838

See accompanying notes to financial statements. 153

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Coupon rate			Maturity date		Rating (a)		Principal amount		Value
Long-term Municipal Bonds (Cont.)
Washington (3.64%)
Bethel School District No. 403, Pierce County, Washington, Unlimited Tax General Obligation Bonds, 2006		5.000	%		12/01/2020		Aa2	$	1,420,000	$	1,519,769
Bellevue School District No. 405, King County, Washington, Unlimited Tax General Obligation Refunding Bonds, 2012B		3.000	%		12/01/2023		AA+		5,000,000		4,965,950
Lake Washington School District No. 414, King County, Washington, Unlimited Tax General Obligation Bonds, 2008		5.000	%		12/01/2025		AA		2,000,000		2,201,500
Bellevue School District No. 405, King County, Washington, Unlimited Tax General Obligation Bonds, 2008		4.750	%		12/01/2026		AA+		2,500,000		2,683,725
Public Utility District No. 1 of Clark County, Washington, Water System Revenue Bonds, Series 2008		5.000	%		01/01/2028		AA-		680,000		717,380
College Place School District No. 250, Walla Walla County, Washington, Unlimited Tax General Obligation Bonds, Series 2012		4.250	%		12/01/2028		A1		2,445,000		2,442,237
Public Utility District No. 1 of Clark County, Washington, Water System Revenue Bonds, Series 2008		5.125	%		01/01/2029		AA-		445,000		469,671
Public Utility District No. 1 of Douglas County, Washington, Wells Hydroelectric Revenue and Refunding Bonds, Series 2005B (Non-AMT)		5.000	%		09/01/2030		Aa3		900,000		939,015
Public Utility District No. 1 of Douglas County, Washington, Electric Distribution System Revenue and Refunding Bonds, Series 2012		5.000	%		12/01/2030		Aa3		1,325,000		1,412,132
											17,351,379
West Virginia (3.14%)
West Virginia University Board of Governors, University Improvement Revenue Bonds, (West Virginia University Projects), 2011 Series B		5.000	%		10/01/2022		A+		2,200,000		2,493,546
The Board of Education of the County of Manongalia (West Virginia), Public School Refunding Bonds, Series 2012		4.250	%		05/01/2027		AA		2,260,000		2,285,199
West Virginia University Board of Governors, University Improvement Revenue Bonds, (West Virginia University Projects), 2011 Series B		4.750	%		10/01/2027		A+		2,240,000		2,382,912
The Board of Education of the County of Manongalia (West Virginia), Public School Refunding Bonds, Series 2012		4.375	%		05/01/2028		AA		2,350,000		2,376,884
West Virginia University Board of Governors, University Improvement Revenue Bonds, (West Virginia University Projects), 2011 Series B		4.750	%		10/01/2028		A+		2,595,000		2,739,152
The Board of Education of the County of Manongalia (West Virginia), Public School Refunding Bonds, Series 2012		5.000	%		05/01/2030		AA		2,555,000		2,704,621
											14,982,314
Wisconsin (1.37%)
Fox Valley Technical College District, Wisconsin, General Obligation School Facilities Bonds, Series 2012C		3.000	%		12/01/2023		Aaa		2,700,000		2,695,356
School District of Elbrook, Waukesha County, Wisconsin, General Obligation School Building and Improvement Bonds (Prerefunded to 04-01-2018 @ 100) (b)		5.000	%		04/01/2028		Aaa		850,000		992,978
Village of Whitefish Bay, Wisconsin, (Milwaukee County), General Obligation Corporate Purpose Bonds, Series 2013A		3.250	%		04/01/2029		Aa1		495,000		426,353
City of Oshkosh, Wisconsin, Storm Water Utility Revenue Bonds, Series 2013A		4.000	%		05/01/2029		Aa3		2,495,000		2,406,078
											6,520,765
Total Long-term Municipal Bonds
(cost $469,949,898)											462,348,100

154 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Shares		Value
Short-term Investments (2.46%)
JPMorgan Tax Free Money Market Fund		11,711,248	$	11,711,248
Total Short-term Investments
(cost $ 11,711,248)				11,711,248
TOTAL INVESTMENTS (99.36%)
(cost $ 481,661,146)				474,059,348
OTHER ASSETS, NET OF LIABILITIES (0.64%)				3,073,107
NET ASSETS (100.00%)			$	477,132,455

(a) Ratings are not audited and represent the lower of Moody’s or S&P issuer specific ratings.

(b) Advanced Refunded Bonds are backed by an escrow or trust containing U.S. Government, U.S. Government Agency or other securities to support the timely payment of principal and interest.

(c) Security purchased on a “when-issued” basis.

NR - Not Rated

See accompanying notes to financial statements. 155

STATE FARM MUTUAL FUND TRUST MONEY MARKET FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

	Principal amount		Value
Short-term Investments (100.09%)
Agriculture, Foods, & Beverage (5.09%)
Nestle Finance International Ltd.
0.060%, 01/07/2014	$	1,200,000	$	1,199,988
0.075%, 02/18/2014		4,700,000		4,699,530
0.095%, 02/18/2014		4,477,000		4,476,433
0.080%, 02/20/2014		5,800,000		5,799,356
				16,175,307
Automotive (11.86%)
American Honda Finance Corp.
0.110%, 01/21/2014		10,250,000		10,249,374
0.090%, 01/23/2014		2,370,000		2,369,870
0.090%, 02/25/2014		1,370,000		1,369,812
PACCAR Financial Corp.
0.100%, 01/03/2014		4,950,000		4,949,972
0.080%, 02/20/2014		2,200,000		2,199,756
Toyota Motor Credit Corp.
0.060%, 01/16/2014		10,000,000		9,999,750
0.070%, 01/28/2014		3,380,000		3,379,823
0.070%, 02/06/2014		3,155,000		3,154,779
				37,673,136
Chemicals (0.85%)
Praxair Inc.
0.120%, 01/06/2014		1,300,000		1,299,978
0.090%, 01/15/2014		1,400,000		1,399,951
				2,699,929
Financial Services (9.65%)
General Electric Capital Corp.
0.090%, 02/20/2014		4,880,000		4,879,390
0.120%, 03/03/2014		4,331,000		4,330,119
0.110%, 03/11/2014		5,700,000		5,698,798
Wells Fargo & Co.
0.140%, 02/10/2014		2,540,000		2,539,605
0.140%, 02/13/2014		12,000,000		11,997,993
0.140%, 02/18/2014		1,200,000		1,199,776
				30,645,681
Government Agency Securities (a) (44.04%)
Federal Home Loan Bank
0.070%, 01/13/2014		1,559,000		1,558,964
0.040%, 01/14/2014		21,000,000		20,999,697
0.060%, 01/15/2014		9,000,000		8,999,792
0.055%, 01/15/2014		2,200,000		2,199,948
0.065%, 01/15/2014		1,100,000		1,099,975
0.065%, 01/17/2014		6,100,000		6,099,845
0.045%, 01/17/2014		4,000,000		3,999,898
0.050%, 01/22/2014		4,700,000		4,699,852
0.060%, 01/22/2014		3,100,000		3,099,902
0.050%, 01/24/2014		5,500,000		5,499,824
0.060%, 01/31/2014		5,000,000		4,999,750
0.080%, 02/12/2014		17,000,000		16,998,413
0.072%, 02/14/2014		4,500,000		4,499,604
0.050%, 02/18/2014		11,000,000		10,999,267
0.065%, 02/21/2014		3,000,000		2,999,724

	Principal amount		Value
Short-term Investments (Cont.)
Government Agency Securities (Cont.)
0.060%, 02/26/2014	$	25,000,000	$	24,997,667
0.080%, 02/28/2014		1,500,000		1,499,807
Federal Home Loan Mortgage Corp.
0.070%, 02/05/2014		3,200,000		3,199,782
Federal National Mortgage Association
0.060%, 01/07/2014		8,800,000		8,799,912
0.070%, 02/03/2014		2,600,000		2,599,833
				139,851,456
Health Care (6.12%)
Abbott Laboratories (b)
0.130%, 01/06/2014		12,800,000		12,799,769
Pfizer Inc. (b)
0.090%, 03/12/2014		6,618,000		6,616,842
				19,416,611
Oil & Gas (9.33%)
Chevron Corp. (b)
0.090%, 03/06/2014		15,630,000		15,627,499
Exxon Mobil Corp.
0.060%, 02/07/2014		14,000,000		13,999,137
				29,626,636
	Shares		Value
Registered Investment Companies (0.56%)
JPMorgan U.S. Government Money Market Fund		1,778,499	$	1,778,499

156 See accompanying notes to financial statements.

STATE FARM MUTUAL FUND TRUST MONEY MARKET FUND

SCHEDULE OF INVESTMENTS (continued)

December 31, 2013

	Principal amount		Value
Short-term Investments (Cont.)
U.S. Government Obligations (12.59%)
U.S. Treasury Bill
0.005%, 01/02/2014	$	7,000,000	$	6,999,999
0.020%, 02/20/2014		7,000,000		6,999,806
0.037%, 02/27/2014		15,000,000		14,999,133
0.046%, 03/06/2014		11,000,000		10,999,110
				39,998,048
Total Short-term Investments
(cost $ 317,865,303)				317,865,303
TOTAL INVESTMENTS (100.09%)
(cost $ 317,865,303)				317,865,303
LIABILITIES, NET OF OTHER ASSETS (-0.09%)				(283,141	)
NET ASSETS (100.00%)			$	317,582,162

(a) The obligations of these U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corp. (“Freddie Mac”) into conservatorship. The United States Treasury has put in place a set of financing agreements to help ensure that these entities continue to meet their obligations to holders of bonds they have issued or guaranteed.

(b) Securities exempt from registration under Section 4(2) of the Securities Act of 1933. These securities are purchased as part of the normal course of business, valued at amortized cost and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid.

See accompanying notes to financial statements. 157

STATE FARM MUTUAL FUND TRUST

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2013

	Equity Fund			Small/Mid Cap Equity Fund		International Equity Fund
Assets
Investments in securities at identified cost	$	313,254,553			216,740,300		110,310,256
Investments in securities at market value	$	417,322,136			267,142,163		144,482,275
Cash		—			—		—
Foreign currencies at value (cost $388 and $1,954,106, respectively)		—			—		391
Receivable for:
Dividends and interest		276,970			133,445		159,955
Shares of the Fund sold		174,184			152,771		67,582
Securities sold		2,365,138			3,523,269		1,393,827
SFIMC		—			—		27,999
Federal tax expense reimbursement		—			—		—
Variation margin on futures contracts		—			—		—
Unrealized gain on forward foreign currency contracts		—			—		234
Prepaid expenses		3,329			2,327		1,468
Total assets		420,141,757			270,953,975		146,133,731
Liabilities and Net Assets
Distributions to shareholders		—			—		—
Payable for:
Shares of the Fund redeemed		23,040			217,581		27,036
Securities Purchased		708,698			2,122,917		127,158
Unrealized loss on forward foreign currency contracts		—			—		1,126
Due to affiliates		386,710			333,270		184,593
Accrued liabilities		56,287			58,586		53,255
Total liabilities		1,174,735			2,732,354		393,168
Net assets applicable to shares outstanding of common stock	$	418,967,022			268,221,621		145,740,563
Analysis of Net Assets
Paid-in-capital	$	350,901,752			208,847,327		123,269,918
Accumulated net realized gain (loss)		(36,238,783	)		8,972,431		(11,214,946	)
Net unrealized appreciation (depreciation)		104,067,583			50,401,863		34,176,484
Accumulated undistributed net investment income (loss)		236,470			—		(490,893	)
Net assets applicable to shares outstanding	$	418,967,022			268,221,621		145,740,563
Fund shares outstanding:
Class A Shares		9,662,320			6,313,504		3,590,670
Class B Shares		324,316			1,129,682		954,809
Legacy Class A Shares		11,399,597			7,874,081		4,445,042
Legacy Class B Shares		1,118,439			1,213,623		1,013,512
Institutional Shares		23,735,796			3,478,754		1,756,971
Class R-1 Shares		240,534			303,797		258,100
Class R-2 Shares		1,297,803			843,284		511,393
Class R-3 Shares		257,554			220,771		188,519
Net assets applicable to shares outstanding:
Class A Shares	$	83,262,886			80,218,588		41,018,487
Class B Shares		2,785,874			13,598,110		10,756,766
Legacy Class A Shares		102,108,061			98,099,902		51,238,510
Legacy Class B Shares		9,988,670			14,189,538		11,535,024
Institutional Shares		205,356,145			45,096,392		20,252,472
Class R-1 Shares		2,074,628			3,700,551		2,931,465
Class R-2 Shares		11,162,015			10,482,950		5,836,774
Class R-3 Shares		2,228,743			2,835,590		2,171,065
Net asset value:
Class A Shares	$	8.62			12.71		11.42
Class B Shares		8.59			12.04		11.27
Legacy Class A Shares		8.96			12.46		11.53
Legacy Class B Shares		8.93			11.69		11.38
Institutional Shares		8.65			12.96		11.53
Class R-1 Shares		8.63			12.18		11.36
Class R-2 Shares		8.60			12.43		11.41
Class R-3 Shares		8.65			12.84		11.52
Maximum offering price:
Class A Shares	$	9.07			13.38		12.02
Legacy Class A Shares		9.24			12.85		11.89

(a) Relates to investments in affiliated investment companies.

(b) Includes $841,910 pledged for open futures contracts.

158 See accompanying notes to financial statements.

S&P 500 Index Fund			Small Cap Index Fund		International Index Fund			Equity and Bond Fund			Bond Fund			Tax Advantaged Bond Fund			Money Market Fund
	512,243,286			298,184,152		184,175,582			227,891,550	(a)		681,554,975			481,661,146			317,865,303
	876,635,062			429,296,831		252,578,961			255,252,917	(a)		678,685,098			474,059,348			317,865,303
	—			—		—			714,609			—			—			—
	—			—		1,951,057	(b)		—			—			—			—
	1,141,317			508,642		427,691			232,039			4,969,078			5,722,525			13
	805,547			245,545		468,727			157,707			360,731			174,318			348,279
	29			2		119,573			—			—			—			—
	—			6,113		21,011			45,162			109			—			137,317
	—			1,067		—			—			—			—			—
	105,099			22,081		173,285			—			—			—			—
	—			—		11,401			—			—			—			—
	17,551			3,679		2,311			617			7,871			6,085			3,169
	878,704,605			430,083,960		255,754,017			256,403,051			684,022,887			479,962,276			318,354,081
	—			272		—			151			289,290			254,674			492
	381,973			470,119		257,490			464,416			737,976			66,754			559,648
	—			96,300		19,265			—			—			2,168,222			—
	—			—		8,273			—			—			—			—
	595,670			348,796		272,772			64,162			384,827			284,565			160,495
	89,015			102,382		146,738			45,779			81,418			55,606			51,284
	1,066,658			1,017,869		704,538			574,508			1,493,511			2,829,821			771,919
	877,637,947			429,066,091		255,049,479			255,828,543			682,529,376			477,132,455			317,582,162
	531,091,994			294,499,876		218,113,435			227,870,937			685,290,566			486,282,713			317,581,524
	(19,284,116	)		3,155,919		(30,129,831	)		523,672			108,687			(1,548,460	)		638
	365,092,773			131,332,451		68,587,542			27,361,367			(2,869,877	)		(7,601,798	)		—
	737,296			77,845		(1,521,667	)		72,567			—			—			—
	877,637,947			429,066,091		255,049,479			255,828,543			682,529,376			477,132,455			317,582,162
	19,646,409			5,258,814		5,500,846			8,203,660			30,303,650			34,576,857			164,198,398
	928,026			883,628		981,126			1,266,505			1,079,876			591,872			684,930
	29,041,037			12,239,315		7,893,311			10,029,627			11,926,165			7,251,808			71,024,352
	2,628,140			2,047,254		1,427,444			2,432,069			673,662			86,151			2,003,193
	8,375,990			4,732,209		3,548,056			2,428,707			16,905,699						59,209,910
	580,255			251,871		295,140			256,076			332,622						4,589,100
	1,394,254			535,362		596,545			530,486			737,643						14,364,451
	250,395			147,294		180,298			145,600			160,636						1,507,197
	273,281,969			86,991,888		68,706,256			82,599,518			332,951,658			388,232,119			164,198,724
	12,974,206			14,359,754		12,263,890			12,767,087			11,856,644			6,642,753			684,932
	405,980,951			200,616,432		98,425,526			101,924,170			131,130,585			81,291,696			71,024,497
	36,992,597			32,909,773		17,886,845			24,774,931			7,411,627			965,887			2,003,192
	117,429,744			78,728,328		44,385,745			24,478,692			185,661,876						59,210,028
	8,104,992			4,157,387		3,688,774			2,547,122			3,654,609						4,589,109
	19,368,611			8,851,192		7,434,811			5,284,506			8,096,848						14,364,480
	3,504,877			2,451,337		2,257,632			1,452,517			1,765,529						1,507,200
	13.91			16.54		12.49			10.07			10.99			11.23			1.00
	13.98			16.25		12.50			10.08			10.98			11.22			1.00
	13.98			16.39		12.47			10.16			11.00			11.21			1.00
	14.08			16.08		12.53			10.19			11.00			11.21			1.00
	14.02			16.64		12.51			10.08			10.98						1.00
	13.97			16.51		12.50			9.95			10.99						1.00
	13.89			16.53		12.46			9.96			10.98						1.00
	14.00			16.64		12.52			9.98			10.99						1.00
	14.64			17.41		13.15			10.60			11.33			11.58			1.00
	14.41			16.90		12.86			10.47			11.34			11.56			1.00

See accompanying notes to financial statements. 159

STATE FARM MUTUAL FUND TRUST

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2013

	LifePath Retirement Fund			LifePath 2020 Fund		LifePath 2030 Fund		LifePath 2040 Fund		LifePath 2050 Fund
Assets
Investments in securities in Master Portfolios	$	1,081,218,544			1,729,227,358		1,605,080,085		1,176,386,412		183,253,915
Receivable for:
Shares of the Fund sold		1,191,166			629,752		1,671,246		1,530,582		375,100
SFIMC		65,624			104,385		96,319		70,427		20,889
Prepaid expenses		9,915			15,946		13,562		8,090		1,276
Total assets		1,082,485,249			1,729,977,441		1,606,861,212		1,177,995,511		183,651,180
Liabilities and Net Assets
Distributions to shareholders		293,459			260,258		144,902		79,327		222,218
Payable for:
Shares of the Fund redeemed		336,866			317,176		906,870		308,148		96,031
Investments in Master Portfolios		854,301			312,575		764,376		1,222,434		279,069
Due to affiliates		834,766			1,363,350		1,275,113		950,124		157,328
Accrued liabilities		59,033			100,402		121,535		131,278		43,247
Total liabilities		2,378,425			2,353,761		3,212,796		2,691,311		797,893
Net assets applicable to shares outstanding of common stock	$	1,080,106,824			1,727,623,680		1,603,648,416		1,175,304,200		182,853,287
Analysis of Net Assets
Paid-in-capital		1,003,208,728			1,556,764,505		1,416,643,472		1,022,792,017		159,330,649
Accumulated net realized gain (loss)		25,306,674			57,219,535		45,403,728		29,778,299		2,366,648
Net unrealized appreciation (depreciation)		51,872,938			112,577,347		141,100,207		121,954,441		21,181,994
Accumulated undistributed net investment income (loss)		(281,516	)		1,062,293		501,009		779,443		(26,004	)
Net assets applicable to shares outstanding	$	1,080,106,824			1,727,623,680		1,603,648,416		1,175,304,200		182,853,287
Fund shares outstanding:
Class A Shares		52,711,171			68,505,399		60,713,210		36,231,280		15,817,639
Class B Shares		1,016,159			2,284,721		2,748,588		2,624,222
Legacy Class A Shares		22,367,151			30,152,074		22,350,371		15,538,236
Legacy Class B Shares		1,154,197			2,328,040		1,993,171		1,749,350
Institutional Shares		7,108,143			11,832,865		12,491,732		13,747,807
Class R-1 Shares		512,956			1,217,632		1,638,683		1,156,739		424,948
Class R-2 Shares		1,573,818			3,136,409		2,735,043		2,118,292		694,999
Class R-3 Shares		135,393			200,598		239,823		215,148
Net assets applicable to shares outstanding:
Class A Shares	$	652,247,131			989,913,157		927,359,898		579,186,042		170,721,123
Class B Shares		12,652,339			32,801,914		41,774,439		41,724,162
Legacy Class A Shares		282,689,302			434,255,161		341,815,800		249,117,635
Legacy Class B Shares		14,650,284			33,648,923		30,490,191		28,082,591
Institutional Shares		89,843,181			171,421,009		191,895,255		221,417,417
Class R-1 Shares		6,370,048			17,517,558		24,902,187		18,412,429		4,600,812
Class R-2 Shares		19,945,171			45,166,010		41,724,996		33,865,474		7,531,352
Class R-3 Shares		1,709,368			2,899,948		3,685,650		3,498,450
Net asset value:
Class A Shares	$	12.37			14.45		15.27		15.99		10.79
Class B Shares		12.45			14.36		15.20		15.90
Legacy Class A Shares		12.64			14.40		15.29		16.03
Legacy Class B Shares		12.69			14.45		15.30		16.05
Institutional Shares		12.64			14.49		15.36		16.11
Class R-1 Shares		12.42			14.39		15.20		15.92		10.83
Class R-2 Shares		12.67			14.40		15.26		15.99		10.84
Class R-3 Shares		12.63			14.46		15.37		16.26
Maximum offering price:
Class A Shares	$	13.02			15.21		16.07		16.83		11.36
Legacy Class A Shares		13.03			14.85		15.76		16.53

160 See accompanying notes to financial statements.

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161

STATE FARM MUTUAL FUND TRUST

STATEMENTS OF OPERATIONS

Year ended December 31, 2013

	Equity Fund			Small/Mid Cap Equity Fund			International Equity Fund			S&P 500 Index Fund			Small Cap Index Fund
Investment Income: (a)
Dividends	$	6,124,435			2,332,734			3,021,812			15,426,935			4,302,993
Interest		781			328			212			863			1,629
Securities lending - net		—			—			—			—			—
Other income (c)		—			—			—			—			—
Tax-exempt interest		—			—			—			—			—
		6,125,216			2,333,062			3,022,024			15,427,798			4,304,622
Less: foreign withholding taxes		(26,414	)		(1,778	)		(267,675	)		(3,156	)		(3,550	)
Portfolio expenses of Master Portfolios (d)		—			—			—			—			—
Total investment income		6,098,802			2,331,284			2,754,349			15,424,642			4,301,072
Expenses:
Investment advisory and management fees		2,230,805			1,892,713			1,060,272			1,355,408			1,273,554
Shareholder services fees		940,346			602,207			338,389			1,901,324			933,800
Distribution fees Class A		173,637			166,829			89,057			526,389			171,137
Distribution fees Class B		46,548			96,188			59,415			123,928			102,455
Distribution fees Legacy Class A		228,264			221,484			118,892			909,075			443,119
Distribution fees Legacy Class B		64,034			91,317			71,446			249,558			203,790
Distribution fees Class R-1		14,682			18,133			13,627			38,072			18,108
Distribution fees Class R-2		29,708			27,693			15,918			49,000			22,315
Regulatory fees		91,156			89,652			88,646			98,505			90,198
Reports to shareholders		74,314			76,298			56,085			191,704			131,680
Professional fees		44,653			43,142			56,071			57,963			43,996
Trustees’ fees and expenses		16,067			10,241			5,470			32,161			15,961
Custodian fees		7,565			18,438			84,320			16,898			51,123
Errors and omissions insurance		2,145			2,166			1,173			6,678			3,388
ICI dues		3,391			2,091			698			6,794			3,354
Securities valuation fees		3,039			4,559			14,550			9,179			33,153
Fidelity bond expense		240			244			179			612			412
Excise tax		—			—			—			—			6,431
License index fees		—			—			—			69,766			59,376
Total expenses		3,970,594			3,363,395			2,074,208			5,643,014			3,607,350
Less: expense reimbursement from affiliates (e)		—			(10,243	)		(42,124	)		—			(69,259	)
Net expenses		3,970,594			3,353,152			2,032,084			5,643,014			3,538,091
Net investment income (loss)		2,128,208			(1,021,868	)		722,265			9,781,628			762,981
Realized and unrealized gain (loss):
Net realized gain (loss) on sales of investments		48,684,581			45,105,988			11,303,354			(300,648	)		17,874,861
Net realized gain (loss) from affiliated investment companies		—			—			—			—			—
Net realized gain (loss) on forward foreign currency contracts		—			—			(2,474	)		—			—
Net realized gain (loss) on foreign currency transactions		—			—			(69,409	)		—			(106	)
Net realized gain (loss) on futures contracts		—			—			—			5,962,706			3,201,874
Change in net unrealized gain (loss) on open futures contracts		—			—			—			714,366			82,616
Change in net unrealized appreciation (depreciation) on investments and foreign currency transactions		52,864,350			23,987,615			9,654,432			187,312,872			94,966,013
Net realized and unrealized gain (loss) on investments		101,548,931			69,093,603			20,885,903			193,689,296			116,125,258
Net change in net assets resulting from operations	$	103,677,139			68,071,735			21,608,168			203,470,924			116,888,239

(a) Components of investment income for the LifePath Retirement, LifePath 2020, LifePath 2030, LifePath 2040 and LifePath 2050 Funds reflect each Fund’s proportionate income from its Master Portfolio for the entire year.

(b) Relates to investments in affiliated investment companies.

(c) Other Income for the LifePath Retirement, LifePath 2020, LifePath 2030, LifePath 2040 and LifePath 2050 Funds reflects each Fund’s proportionate share of a payment made by an affiliate of the Master Portfolios to affected Underlying Master Portfolios for forgone securities lending revenue.

(d) Portfolio expenses of Master Portfolios for the LifePath Retirement, LifePath 2020, LifePath 2030, LifePath 2040 and LifePath 2050 Funds include the effect of expense reductions at the Master Porfolio level. See Note 7 under Expense Reduction Agreements.

(e) For the Money Market Fund, this amount includes $1,451,403 of additional voluntary fee waivers from SFIMC and VP Management Corp. See Note 7 under Expense Reduction Agreements.

162 See accompanying notes to financial statements.

International Index Fund			Equity and Bond Fund			Bond Fund			Tax Advantaged Bond Fund			Money Market Fund			LifePath Retirement Fund			LifePath 2020 Fund			LifePath 2030 Fund			LifePath 2040 Fund			LifePath 2050 Fund
	7,412,053			3,426,106	(b)		—			—			—			7,614,901			18,389,157			23,046,131			20,490,204			3,537,274
	—			—			23,244,434			5,780			258,022			12,986,886			15,846,640			9,920,666			4,722,297			364,224
	—			—			—			—			—			235,069			344,192			289,392			195,362			26,183
	—			—			—			—			—			13,170			25,990			26,936			22,154			2,509
	—			—			—			18,311,583			—			—			—			—			—			—
	7,412,053			3,426,106			23,244,434			18,317,363			258,022			20,850,026			34,605,979			33,283,125			25,430,017			3,930,190
	(492,653	)		—			—			—			—			—			—			—			—			—
	—			—			—			—			—			(2,514,131	)		(3,534,570	)		(2,873,507	)		(1,891,830	)		(291,808	)
	6,919,400			3,426,106			23,244,434			18,317,363			258,022			18,335,895			31,071,409			30,409,618			23,538,187			3,638,382
	1,129,299			—			730,019			547,383			295,880			3,495,011			5,484,633			4,958,700			3,617,080			516,188
	579,391			6,432			1,835,283			1,368,458			755,443			2,515,814			3,961,316			3,587,971			2,619,488			376,842
	143,397			164,830			915,562			1,121,535			206,226			1,434,059			2,149,386			1,967,023			1,220,075			339,647
	85,813			92,156			80,185			45,238			14,832			66,527			291,247			359,329			357,198			—
	226,882			239,771			358,256			217,112			107,471			705,837			1,040,565			795,141			572,422			—
	114,723			158,553			74,934			32,268			21,953			119,362			256,272			231,837			199,181			—
	17,687			13,161			21,393			—			20,989			30,611			83,977			108,968			84,283			19,933
	19,707			15,505			24,772			—			29,762			59,556			127,494			119,888			93,240			22,911
	90,140			92,438			123,461			114,696			118,823			120,730			118,032			128,950			110,560			45,924
	122,128			64,014			110,824			39,141			68,566			132,138			266,974			311,915			296,300			78,762
	74,030			37,795			63,595			59,490			43,081			45,610			59,134			59,248			57,926			41,460
	10,029			10,048			32,974			24,975			13,285			35,990			61,925			58,278			42,645			5,616
	130,582			—			12,115			5,290			3,416			2,510			2,269			2,224			2,274			2,227
	2,169			2,167			6,543			5,644			2,771			8,739			14,956			13,259			7,585			1,249
	2,009			—			7,517			6,417			2,548			9,032			13,414			13,313			13,422			1,205
	19,249			—			82,640			101,098			2,624			—			—			—			—			—
	242			230			718			618			314			1,294			1,734			1,807			1,120			174
	—			—			—			—			—			—			—			—			—			—
	94,550			—			—			—			—			—			—			—			—			—
	2,862,027			897,100			4,480,791			3,689,363			1,707,984			8,782,820			13,933,328			12,717,851			9,294,799			1,452,138
	(88,425	)		(206,692	)		—			—			(1,451,403	)		(699,002	)		(1,096,927	)		(991,740	)		(723,416	)		(132,867	)
	2,773,602			690,408			4,480,791			3,689,363			256,581			8,083,818			12,836,401			11,726,111			8,571,383			1,319,271
	4,145,798			2,735,698			18,763,643			14,628,000			1,441			10,252,077			18,235,008			18,683,507			14,966,804			2,319,111
	(1,261,666	)		—			5,999,569			(1,504,075	)		638			48,971,853			100,980,029			108,924,954			88,429,037			12,588,191
	—			690,397			—			—			—			—			—			—			—			—
	(55,510	)		—			—			—			—			—			—			—			—			—
	(153,954	)		—			—			—			—			—			—			—			—			—
	913,141			—			—			—			—			—			—			—			—			—
	126,878			—			—			—			—			—			—			—			—			—
	38,910,083			33,089,734	(b)		(52,708,997	)		(36,142,742	)		—			(2,168,016	)		22,020,585			50,778,737			56,145,868			11,358,503
	38,478,972			33,780,131			(46,709,428	)		(37,646,817	)		638			46,803,837			123,000,614			159,703,691			144,574,905			23,946,694
	42,624,770			36,515,829			(27,945,785	)		(23,018,817	)		2,079			57,055,914			141,235,622			178,387,198			159,541,709			26,265,805

See accompanying notes to financial statements. 163

STATE FARM MUTUAL FUND TRUST

STATEMENTS OF CHANGES IN NET ASSETS

	Equity Fund
Years ended December 31,	2013			2012
From operations:
Net investment income (loss)	$	2,128,208			3,351,257
Net realized gain (loss)		48,684,581			19,523,066
Change in net unrealized appreciation or depreciation		52,864,350			20,333,770
Net change in net assets resulting from operations		103,677,139			43,208,093
Distributions to shareholders from and in excess of:
Net investment income:
Class A Shares		(383,697	)		(531,217	)
Class B Shares		—			(17,301	)
Legacy Class A Shares		(410,088	)		(726,622	)
Legacy Class B Shares		—			(42,107	)
Institutional Shares		(1,352,171	)		(1,874,730	)
Class R-1 Shares		—			(19,746	)
Class R-2 Shares		(37,122	)		(89,304	)
Class R-3 Shares		(11,898	)		(25,582	)
		(2,194,976	)		(3,326,609	)
Net realized gain:
Class A Shares		—			—
Class B Shares		—			—
Legacy Class A Shares		—			—
Legacy Class B Shares		—			—
Institutional Shares		—			—
Class R-1 Shares		—			—
Class R-2 Shares		—			—
Class R-3 Shares		—			—
		—			—
Total distributions to shareholders		(2,194,976	)		(3,326,609	)
From Fund share transactions:
Proceeds from shares sold		48,971,918			35,438,008
Reinvestment of distributions		1,126,025			1,755,878
		50,097,943			37,193,886
Less payments for shares redeemed		(47,218,254	)		(27,483,656	)
Net increase (decrease) in net assets from Fund share transactions		2,879,689			9,710,230
Total increase (decrease) in net assets		104,361,852			49,591,714
Net assets:
Beginning of period		314,605,170			265,013,456
End of period*	$	418,967,022			314,605,170
*      Including accumulated undistributed net investment income (loss)		236,470			303,238

164 See accompanying notes to financial statements.

Small/Mid Cap Equity Fund						International Equity Fund						S&P 500 Index Fund						Small Cap Index Fund
2013			2012			2013			2012			2013			2012			2013			2012
	(1,021,868	)		903,791			722,265			1,041,319			9,781,628			9,128,285			762,981			2,969,067
	45,105,988			18,096,817			11,231,471			(130,222	)		5,662,058			5,809,131			21,076,629			10,163,459
	23,987,615			8,710,618			9,654,432			18,017,309			188,027,238			73,429,695			95,048,629			28,437,220
	68,071,735			27,711,226			21,608,168			18,928,406			203,470,924			88,367,111			116,888,239			41,569,746
	(179,580	)		—			(431,875	)		—			(3,213,809	)		(2,205,858	)		(311,310	)		(417,117	)
	—			—			(79,085	)		—			(47,034	)		(138,490	)		—			(15,770	)
	(203,173	)		—			(518,164	)		—			(4,546,462	)		(4,382,466	)		(642,945	)		(1,203,489	)
	—			—			(74,305	)		—			(232,429	)		(336,304	)		16			(106,215	)
	(183,366	)		—			(251,497	)		—			(1,580,423	)		(1,348,103	)		(418,162	)		(552,616	)
	—			—			(21,943	)		—			(63,826	)		(69,027	)		(2,217	)		(15,436	)
	(12,588	)		—			(53,956	)		—			(204,996	)		(204,232	)		(21,521	)		(46,836	)
	(10,744	)		—			(25,543	)		—			(47,288	)		(39,350	)		(11,736	)		(18,213	)
	(589,451	)		—			(1,456,368	)		—			(9,936,267	)		(8,723,830	)		(1,407,875	)		(2,375,692	)
	(7,612,852	)		—			—			—			—			—			(4,012,171	)		(1,242,544	)
	(1,453,989	)		—			—			—			—			—			(697,507	)		(268,191	)
	(9,589,224	)		—			—			—			—			—			(9,395,974	)		(3,666,283	)
	(1,524,844	)		—			—			—			—			—			(1,603,081	)		(735,457	)
	(4,167,251	)		—			—			—			—			—			(3,593,955	)		(1,294,050	)
	(372,833	)		—			—			—			—			—			(195,961	)		(77,020	)
	(1,035,514	)		—			—			—			—			—			(415,302	)		(163,944	)
	(276,635	)		—			—			—			—			—			(114,971	)		(44,881	)
	(26,033,142	)		—			—			—			—			—			(20,028,922	)		(7,492,370	)
	(26,622,593	)		—			(1,456,368	)		—			(9,936,267	)		(8,723,830	)		(21,436,797	)		(9,868,062	)
	41,411,942			25,898,246			17,900,304			13,140,695			161,059,741			95,338,764			52,313,794			32,961,596
	19,969,684			—			916,368			—			9,714,877			8,445,038			17,129,145			7,822,975
	61,381,626			25,898,246			18,816,672			13,140,695			170,774,618			103,783,802			69,442,939			40,784,571
	(31,198,937	)		(22,303,511	)		(15,010,770	)		(12,360,513	)		(122,268,328	)		(97,327,449	)		(43,798,422	)		(40,509,071	)
	30,182,689			3,594,735			3,805,902			780,182			48,506,290			6,456,353			25,644,517			275,500
	71,631,831			31,305,961			23,957,702			19,708,588			242,040,947			86,099,634			121,095,959			31,977,184
	196,589,790			165,283,829			121,782,861			102,074,273			635,597,000			549,497,366			307,970,132			275,992,948
	268,221,621			196,589,790			145,740,563			121,782,861			877,637,947			635,597,000			429,066,091			307,970,132
	—			871,194			(490,893	)		53,187			737,296			879,081			77,845			643,187

See accompanying notes to financial statements. 165

STATE FARM MUTUAL FUND TRUST

STATEMENTS OF CHANGES IN NET ASSETS

	International Index Fund
Years ended December 31,	2013			2012
From operations:
Net investment income (loss)	$	4,145,798			4,233,656
Net realized gain (loss)		(557,989	)		(3,366,771	)
Change in net unrealized appreciation or depreciation		39,036,961			30,291,393
Net change in net assets resulting from operations		42,624,770			31,158,278
Distributions to shareholders from and in excess of:
Net investment income:
Class A Shares		(1,167,452	)		(1,065,948	)
Class B Shares		(149,510	)		(165,228	)
Legacy Class A Shares		(1,648,833	)		(1,856,997	)
Legacy Class B Shares		(223,618	)		(322,465	)
Institutional Shares		(831,141	)		(852,070	)
Class R-1 Shares		(49,183	)		(65,312	)
Class R-2 Shares		(118,024	)		(142,628	)
Class R-3 Shares		(41,545	)		(45,208	)
		(4,229,306	)		(4,515,856	)
Net realized gain:
Class A Shares		—			—
Class B Shares		—			—
Legacy Class A Shares		—			—
Legacy Class B Shares		—			—
Institutional Shares		—			—
Class R-1 Shares		—			—
Class R-2 Shares		—			—
Class R-3 Shares		—			—
		—			—
Total distributions to shareholders		(4,229,306	)		(4,515,856	)
From Fund share transactions:
Proceeds from shares sold		33,852,562			22,172,708
Reinvestment of distributions		3,236,650			3,386,586
		37,089,212			25,559,294
Less payments for shares redeemed		(26,902,215	)		(26,427,660	)
Net increase (decrease) in net assets from Fund share transactions		10,186,997			(868,366	)
Total increase (decrease) in net assets		48,582,461			25,774,056
Net assets:
Beginning of period		206,467,018			180,692,962
End of period*	$	255,049,479			206,467,018
	$	(1,521,667	)		(1,239,679	)

* Including accumulated undistributed net investment income (loss)

(a) Relates to investments in affiliated investment companies.

166 See accompanying notes to financial statements.

Equity and Bond Fund						Bond Fund						Tax Advantaged Bond Fund						Money Market Fund
2013			2012			2013			2012			2013			2012			2013			2012
	2,735,698	(a)		3,036,969	(a)		18,763,643			17,067,462			14,628,000			11,190,134			1,441			625
	690,397	(a)		(137,613	)(a)		5,999,569			350,090			(1,504,075	)		(44,385	)		638			—
	33,089,734	(a)		16,886,456	(a)		(52,708,997	)		6,294,421			(36,142,742	)		9,457,662			—			—
	36,515,829			19,785,812			(27,945,785	)		23,711,973			(23,018,817	)		20,603,411			2,079			625
	(905,308	)		(811,579	)		(9,236,804	)		(7,300,205	)		(12,025,308	)		(8,272,692	)		—			—
	(81,676	)		(95,915	)		(262,297	)		(257,550	)		(159,560	)		(132,642	)		—			—
	(1,142,774	)		(1,395,843	)		(3,617,701	)		(3,852,895	)		(2,338,117	)		(2,227,643	)		—			—
	(182,520	)		(283,552	)		(241,722	)		(760,151	)		(105,015	)		(557,157	)		—			—
	(329,295	)		(351,351	)		(5,055,448	)		(4,545,235	)		—			—			(1,384	)		(595	)
	(20,882	)		(34,483	)		(94,328	)		(92,335	)		—			—			—			—
	(58,552	)		(68,766	)		(198,912	)		(200,299	)		—			—			—			—
	(19,140	)		(24,012	)		(56,431	)		(58,792	)		—			—			(57	)		(30	)
	(2,740,147	)		(3,065,501	)		(18,763,643	)		(17,067,462	)		(14,628,000	)		(11,190,134	)		(1,441	)		(625	)
	—			—			(2,471,793	)		—			—			(5,714	)		—			—
	—			—			(88,031	)		—			—			(89	)		—			—
	—			—			(970,585	)		—			—			(1,172	)		—			—
	—			—			(54,819	)		—			—			(215	)		—			—
	—			—			(1,371,827	)		—			—			—			—			—
	—			—			(28,354	)		—			—			—			—			—
	—			—			(60,590	)		—			—			—			—			—
	—			—			(13,428	)		—			—			—			—			—
	—			—			(5,059,427	)		—			—			(7,190	)		—			—
	(2,740,147	)		(3,065,501	)		(23,823,070	)		(17,067,462	)		(14,628,000	)		(11,197,324	)		(1,441	)		(625	)
	46,309,777			29,856,796			174,881,737			267,507,962			132,543,840			284,470,164			435,032,169			299,066,098
	2,236,020			2,437,412			19,762,826			13,793,592			11,513,252			8,352,643			1,272			480
	48,545,797			32,294,208			194,644,563			281,301,554			144,057,092			292,822,807			435,033,441			299,066,578
	(29,658,674	)		(24,919,655	)		(208,585,482	)		(92,635,637	)		(198,045,807	)		(53,454,435	)		(405,879,625	)		(284,644,309	)
	18,887,123			7,374,553			(13,940,919	)		188,665,917			(53,988,715	)		239,368,372			29,153,816			14,422,269
	52,662,805			24,094,864			(65,709,774	)		195,310,428			(91,635,532	)		248,774,459			29,154,454			14,422,269
	203,165,738			179,070,874			748,239,150			552,928,722			568,767,987			319,993,528			288,427,708			274,005,439
	255,828,543			203,165,738			682,529,376			748,239,150			477,132,455			568,767,987			317,582,162			288,427,708
	72,567			77,016			—			—			—			—			—			—

See accompanying notes to financial statements. 167

STATE FARM MUTUAL FUND TRUST

STATEMENTS OF CHANGES IN NET ASSETS

	LifePath Retirement Fund
Years ended December 31,	2013			2012
From operations:
Net investment income	$	10,252,077			11,205,123
Net realized gain (loss)		48,971,853			22,706,171
Change in net unrealized appreciation or depreciation		(2,168,016	)		30,356,746
Net change in net assets resulting from operations		57,055,914			64,268,040
Distributions to shareholders from and in excess of:
Net investment income:
Class A Shares		(6,037,193	)		(6,588,440	)
Class B Shares		(86,303	)		(106,054	)
Legacy Class A Shares		(2,770,990	)		(3,960,625	)
Legacy Class B Shares		(93,092	)		(265,397	)
Institutional Shares		(1,033,311	)		(1,249,452	)
Class R-1 Shares		(42,314	)		(64,155	)
Class R-2 Shares		(159,526	)		(242,902	)
Class R-3 Shares		(19,841	)		(27,449	)
		(10,242,570	)		(12,504,474	)
Net realized gain:
Class A Shares		(20,604,216	)		(10,422,709	)
Class B Shares		(397,537	)		(246,126	)
Legacy Class A Shares		(8,753,443	)		(5,881,461	)
Legacy Class B Shares		(452,148	)		(491,407	)
Institutional Shares		(2,777,502	)		(1,663,452	)
Class R-1 Shares		(193,079	)		(125,667	)
Class R-2 Shares		(616,862	)		(405,434	)
Class R-3 Shares		(52,928	)		(33,337	)
		(33,847,715	)		(19,269,593	)
Total distributions to shareholders		(44,090,285	)		(31,774,067	)
From Fund share transactions:
Proceeds from shares sold		295,530,879			219,571,913
Reinvestment of distributions		43,708,301			31,484,239
		339,239,180			251,056,152
Less payments for shares redeemed		(171,858,802	)		(127,802,705	)
Net increase (decrease) in net assets from Fund share transactions		167,380,378			123,253,447
Total increase (decrease) in net assets		180,346,007			155,747,420
Net assets:
Beginning of period		899,760,817			744,013,397
End of period*	$	1,080,106,824			899,760,817
*      Including accumulated undistributed net investment income (loss)	$	(281,516	)		(600,773	)

168 See accompanying notes to financial statements.

LifePath 2020 Fund						LifePath 2030 Fund						LifePath 2040 Fund						LifePath 2050 Fund
2013			2012			2013			2012			2013			2012			2013			2012
	18,235,008			18,664,165			18,683,507			17,138,013			14,966,804			12,997,274			2,319,111			1,430,083
	100,980,029			39,231,082			108,924,954			34,642,726			88,429,037			26,010,763			12,588,191			2,248,485
	22,020,585			68,471,248			50,778,737			78,869,662			56,145,868			68,038,295			11,358,503			8,541,052
	141,235,622			126,366,495			178,387,198			130,650,401			159,541,709			107,046,332			26,265,805			12,219,620
	(11,253,626	)		(10,825,159	)		(11,911,112	)		(9,865,380	)		(7,880,194	)		(6,255,076	)		(2,216,215	)		(1,415,169	)
	(154,002	)		(236,488	)		(268,027	)		(293,522	)		(301,234	)		(307,098	)		—			—
	(4,764,192	)		(5,809,299	)		(4,243,857	)		(4,349,108	)		(3,286,010	)		(3,137,505	)		—			—
	(176,461	)		(413,908	)		(202,089	)		(387,230	)		(225,527	)		(339,227	)		—			—
	(2,284,241	)		(2,445,188	)		(2,819,547	)		(2,608,128	)		(3,413,944	)		(2,950,043	)		—			—
	(139,141	)		(198,785	)		(249,197	)		(237,787	)		(193,069	)		(191,233	)		(46,279	)		(37,363	)
	(449,606	)		(567,892	)		(467,633	)		(574,929	)		(411,567	)		(434,423	)		(80,493	)		(61,485	)
	(35,320	)		(42,800	)		(49,659	)		(55,998	)		(50,650	)		(42,873	)		—			—
	(19,256,589	)		(20,539,519	)		(20,211,121	)		(18,372,082	)		(15,762,195	)		(13,657,478	)		(2,342,987	)		(1,514,017	)
	(38,149,653	)		(1,225,848	)		(36,743,799	)		—			(22,238,736	)		—			(8,218,016	)		(1,789,798	)
	(1,279,126	)		(48,637	)		(1,674,165	)		—			(1,621,087	)		—			—			—
	(16,786,371	)		(676,871	)		(13,531,065	)		—			(9,545,182	)		—			—			—
	(1,303,191	)		(79,787	)		(1,213,523	)		—			(1,080,207	)		—			—			—
	(6,571,107	)		(244,439	)		(7,539,870	)		—			(8,410,953	)		—			—			—
	(678,855	)		(27,935	)		(992,329	)		—			(713,674	)		—			(224,572	)		(59,833	)
	(1,748,482	)		(69,219	)		(1,659,244	)		—			(1,301,732	)		—			(363,626	)		(84,284	)
	(111,455	)		(4,627	)		(145,007	)		—			(131,812	)		—			—			—
	(66,628,240	)		(2,377,363	)		(63,499,002	)		—			(45,043,383	)		—			(8,806,214	)		(1,933,915	)
	(85,884,829	)		(22,916,882	)		(83,710,123	)		(18,372,082	)		(60,805,578	)		(13,657,478	)		(11,149,201	)		(3,447,932	)
	400,567,875			305,192,681			371,404,810			271,912,998			254,817,840			191,013,732			70,535,523			45,687,094
	85,627,637			22,821,471			83,568,710			18,343,121			60,719,636			13,594,345			10,929,799			3,361,060
	486,195,512			328,014,152			454,973,520			290,256,119			315,537,476			204,608,077			81,465,322			49,048,154
	(221,090,222	)		(176,474,197	)		(193,511,862	)		(146,736,892	)		(143,606,417	)		(112,907,172	)		(26,374,266	)		(12,755,667	)
	265,105,290			151,539,955			261,461,658			143,519,227			171,931,059			91,700,905			55,091,056			36,292,487
	320,456,083			254,989,568			356,138,733			255,797,546			270,667,190			185,089,759			70,207,660			45,064,175
	1,407,167,597			1,152,178,029			1,247,509,683			991,712,137			904,637,010			719,547,251			112,645,627			67,581,452
	1,727,623,680			1,407,167,597			1,603,648,416			1,247,509,683			1,175,304,200			904,637,010			182,853,287			112,645,627
	1,062,293			1,666,281			501,009			1,729,992			779,443			1,409,104			(26,004	)		(24,248	)

See accompanying notes to financial statements. 169

STATE FARM MUTUAL FUND TRUST

NOTES TO FINANCIAL STATEMENTS

1. Investment Objective

State Farm Mutual Fund Trust (the “Trust”) has 15 separate investment portfolios (the “Funds”). The Trust is registered under the Investment Company Act of 1940 as an open-end, management investment company. Each Fund has its own investment objective, investment policies, restrictions, and attendant risks and is diversified as defined in the Investment Company Act of 1940. State Farm Investment Management Corp. (“SFIMC”) is the Trust’s investment adviser.

The State Farm Equity Fund (the “Equity Fund”) seeks long-term growth of capital. The Equity Fund seeks to achieve this objective by investing, under normal circumstances, at least 80% of its net assets (plus any borrowings) in common stocks and other equity securities of large capitalization companies.

The State Farm Small/Mid Cap Equity Fund (the “Small/Mid Cap Equity Fund”) seeks long-term growth of capital. The Fund primarily invests under normal circumstances at least 80% of its net assets (plus any borrowing) in common stock and other equity securities of small and mid-capitalization stocks issued by U.S. companies.

The State Farm International Equity Fund (the “International Equity Fund”) seeks long-term growth of capital. The International Equity Fund invests its assets primarily in securities issued by foreign companies. There is no restriction on the size of the companies in which the Fund invests.

The State Farm S&P 500 Index Fund (the “S&P 500 Index Fund”) seeks to provide investment results that correspond to the total return of publicly traded common stocks in the aggregate, as represented by the S&P 500^® Index. The S&P 500 Index Fund pursues its investment objective by investing in substantially all of the securities that make up the S&P 500 Index. The S&P 500 Index tracks the common stock performance of 500 large U.S. companies.

The State Farm Small Cap Index Fund (the “Small Cap Index Fund”) seeks to match as closely as practicable, before fees and expenses, the performance of the Russell 2000^® Small Stock Index (the “Russell 2000”). The Small Cap Index Fund pursues its investment objective by investing in a representative sample of the securities contained in the Russell 2000. The Russell 2000 tracks the common stock performance of about 2,000 small U.S. companies.

The State Farm International Index Fund (the “International Index Fund”) seeks to match as closely as practicable, before fees and expenses, the performance of an international portfolio of common stocks represented by the Morgan Stanley Capital International Europe, Australasia and Far East Free Index (the “EAFE^® Free”). The International Index Fund selects a representative sample of the securities contained in the EAFE Free. The EAFE Free is a capitalization-weighted index that currently includes stocks of companies in 15 European countries, Australia, New Zealand, Israel, Hong Kong, Japan and Singapore.

The State Farm Equity and Bond Fund (the “Equity and Bond Fund”) seeks long-term growth of principal while providing some current income. The Equity and Bond Fund invests in the Institutional shares of the State Farm Equity Fund and State Farm Bond Fund of the Trust.

The State Farm Bond Fund (the “Bond Fund”) seeks to realize over a period of years the highest yield consistent with investing in investment grade bonds. The Fund typically invests 80% or more of its net assets (plus any borrowings for investment purposes) in investment grade bonds or bonds determined to be of comparable quality.

The State Farm Tax Advantaged Bond Fund (the “Tax Advantaged Bond Fund”) seeks as high a rate of income exempt from federal income taxes as is consistent with prudent investment management. The Tax Advantaged Bond Fund normally invests so that either (1) at least 80% of the Tax Advantaged Bond Fund’s net investment income is exempt from regular federal income tax or (2) at least 80% or more of the Tax Advantaged Bond Fund’s net assets are invested in securities that produce income exempt from regular federal income tax.

The State Farm Money Market Fund (the “Money Market Fund”) seeks to maximize current income to the extent consistent with the preservation of capital and maintenance of liquidity. The Money Market Fund invests exclusively in short-term, U.S. dollar-denominated money market securities, including those issued by U.S. and foreign financial institutions, corporate issuers, the U.S. Government and its agencies and instrumentalities, municipalities, foreign governments, and multi-national organizations, such as The World Bank.

The State Farm LifePath^® Retirement Fund (the “LifePath Retirement Fund”) is managed for investors seeking income and moderate long-term growth of capital. The LifePath Retirement Fund invests all of its assets in a separate series of the Master Investment Portfolio, called the LifePath Retirement Master Portfolio. The LifePath Retirement Master Portfolio and the LifePath Retirement Fund have substantially similar investment objectives.

The State Farm LifePath 2020^® Fund (the “LifePath 2020 Fund”) is managed for investors planning to retire (or begin to withdraw substantial portions of their investment) approximately in the year 2020. The LifePath 2020 Fund invests all of its assets in a separate series of the Master Investment Portfolio, called the LifePath 2020 Master Portfolio. The LifePath 2020 Master Portfolio and the LifePath 2020 Fund have substantially similar investment objectives.

170

STATE FARM MUTUAL FUND TRUST

NOTES TO FINANCIAL STATEMENTS (continued)

The State Farm LifePath 2030^® Fund (the “LifePath 2030 Fund”) is managed for investors planning to retire (or begin to withdraw substantial portions of their investment) approximately in the year 2030. The LifePath 2030 Fund invests all of its assets in a separate series of the Master Investment Portfolio, called the LifePath 2030 Master Portfolio. The LifePath 2030 Master Portfolio and the LifePath 2030 Fund have substantially similar investment objectives.

The State Farm LifePath 2040^® Fund (the “LifePath 2040 Fund”) is managed for investors planning to retire (or begin to withdraw substantial portions of their investment) approximately in the year 2040. The LifePath 2040 Fund invests all of its assets in a separate series of the Master Investment Portfolio, called the LifePath 2040 Master Portfolio. The LifePath 2040 Master Portfolio and the LifePath 2040 Fund have substantially similar investment objectives.

The State Farm LifePath 2050^® Fund (the “LifePath 2050 Fund”) is managed for investors planning to retire (or begin to withdraw substantial portions of their investment) approximately in the year 2050. The LifePath 2050 Fund invests all of its assets in a separate series of the Master Investment Portfolio, called the LifePath 2050 Master Portfolio. The LifePath 2050 Master Portfolio and the LifePath 2050 Fund have substantially similar investment objectives.

Each LifePath Master Portfolio invests in a combination of equity, fixed income and short-term money market funds (the “Underlying Funds”) in proportions suggested by its own comprehensive asset allocation investment strategy that gradually becomes more conservative as the year in the LifePath Fund’s name approaches, except for the LifePath Retirement Master Portfolio that already is in its most conservative phase. The Underlying Funds include the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000 Index Master Portfolio, collectively defined as the “Underlying Master Portfolios”.

The LifePath Retirement, LifePath 2020, LifePath 2030, LifePath 2040 and LifePath 2050 Funds are collectively defined as the “Feeder Funds”. The LifePath Retirement Master Portfolio, LifePath 2020 Master Portfolio, LifePath 2030 Master Portfolio, LifePath 2040 Master Portfolio and LifePath 2050 Master Portfolio are collectively defined as the “Master Portfolios”.

For more information about the Master Portfolios refer to the Master Investment Portfolio (“MIP”) section.

2. Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”).

Multi-class Fund Structure

Each Fund, other than the Tax Advantaged Bond Fund and LifePath 2050 Fund, offers eight classes of shares. The Tax Advantaged Bond Fund offers four classes of shares: Class A, Legacy Class A, Class B and Legacy Class B. The LifePath 2050 Fund offers three classes of shares: Class A, Class R-1 and Class R-2. Except for new investments in the Money Market Fund, Class A and Legacy Class A shares are offered to investors subject to an initial sales charge. The maximum offering price for Class A shares of each Fund, other than the Money Market Fund, the Bond Fund and the Tax Advantaged Bond Fund, is computed by dividing the Net Asset Value (“NAV”) by 0.95. The maximum offering price for Class A shares of the Bond Fund and the Tax Advantaged Bond Fund is computed by dividing the NAV by 0.97. The maximum offering price for Legacy Class A shares of each Fund, other than the Money Market Fund, is computed by dividing the NAV by 0.97. Class B and Legacy Class B shares are offered without an initial sales charge, but are subject to higher ongoing expenses than Class A and Legacy Class A shares and a contingent deferred sales charge payable upon certain redemptions. Class B and Legacy Class B shares automatically convert to the corresponding Class A and Legacy Class A shares eight years after issuance. Institutional shares are offered to institutional investors, including certain insurance companies, defined contribution plans, defined benefit plans, and may be used as a funding vehicle for certain IRAs. Class R-1, R-2 and R-3 shares are available for purchase or exchange only by certain qualified purchasers as defined in the prospectus for Class R-1, R-2, and R-3 shares. Institutional, Class R-1, R-2 and R-3 shares are not subject to an initial sales charge or a contingent deferred sales charge.

Investment income and certain Fund level expenses and expense reductions, if any, are borne pro rata on the basis of fair value of settled shares outstanding for the Bond, Tax Advantaged Bond and Money Market Funds and, indirectly, the Equity and Bond Fund, and relative net assets for all other Funds. Realized and unrealized gains and losses are borne pro rata on the basis of relative net assets for all Funds. However, each class bears certain expenses unique to that class such as distribution services and certain other class specific expenses. Differences in class expenses may result in the payment of different per share dividends by class. All shares of the Funds have equal rights with respect to voting subject to class specific arrangements.

Fund Share Valuation

The offering price of the shares of each Fund, other than Money Market Fund, is its NAV, plus an initial sales charge on the Class A and Legacy Class A shares. The offering price of the Money Market Fund and all Funds’ Class B, Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 shares is the NAV. A separate NAV is calculated for each class of each Fund.

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The NAV for each class of each Fund is determined as of the time of the close of regular session trading on the New York Stock Exchange (“NYSE”) (usually at 3:00 p.m., Central Time) on each day when the NYSE is open for business. Shares of the Funds will not be priced on days when the NYSE is closed.

Securities Valuation

All investments in securities are recorded at their fair value. For more information refer to Note 3 Securities Valuation.

Securities Transactions and Investment Income

For financial reporting purposes, security transactions are accounted for on trade date (date the order to buy or sell is executed). Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the information is available to the Funds. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts on money market instruments and long-term debt instruments. Realized gains and losses from security transactions are reported on an identified cost basis.

Expenses

Expenses arising in connection with a specific Fund are allocated to that Fund. Expenses arising in connection with a specific share class are allocated to that class. Common Trust expenses are generally allocated between the Funds in proportion to each Fund’s relative net assets.

Income Taxes and Distributions to Shareholders

Each Fund is a separate taxpayer for federal income tax purposes. It is the Funds’ policy to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and, in the manner provided therein, to distribute substantially all of their taxable income, including any net realized gain on sales of investments reportable for federal income tax purposes.

For more information refer to Note 6 Income Taxes and Distributions to Shareholders.

Foreign Currency Translation

Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing foreign exchange rates at December 31, 2013. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollars at the prevailing foreign exchange rates on the respective dates of transactions. That portion of realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with realized and unrealized gains and losses on investment securities.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Commitments and Contingencies

In the normal course of business, the Trust enters into contracts on behalf of the Funds that may contain provisions for general indemnifications. Each Fund’s maximum exposure under these indemnification provisions is unknown, as this would involve future claims that may be made against each Fund that are not known at this time. However, based on past experience, the Funds believe the risk of loss from these indemnification provisions is remote.

Investments in Master Portfolios

Each Feeder Fund records its investment in its Master Portfolio based upon each Feeder Fund’s proportionate interest in the net assets of the respective Master Portfolio. Valuation policies relating to securities held by each Master Portfolio are disclosed in the MIP Notes to Financial Statements included elsewhere in this report.

Each Feeder Fund records daily its proportionate share of the Master Portfolio’s income, expenses, and realized and unrealized gains and losses. In addition, the Feeder Funds accrue their own expenses.

For more information refer to Note 4 Investments in Master Portfolios.

Securities Purchased on a “When-issued” Basis

The Tax Advantaged Bond Fund may purchase municipal bonds on a “when-issued” basis. Delivery and payment for these securities may be a month or more after the purchase date, during which time such securities are subject to market fluctuations. The Tax Advantaged Bond Fund identifies and holds specific liquid assets with a market value at least equal to the amount of the when-issued purchase commitments in order to ensure that it can meet those commitments. It is possible that the securities will never be issued and the commitment canceled. At December 31, 2013, the Tax Advantaged Bond Fund had commitments of $1,056,790 (representing 0.22% of net assets) for when-issued securities.

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Short Sales

The S&P 500 Index Fund, Small Cap Index Fund and the International Index Fund may enter into covered short sale transactions to dispose of certain securities received as part of involuntary corporate actions (e.g., corporate mergers, spin-offs, distributions) that are no longer included in the respective benchmark indices. These transactions are designed to help minimize the impact these non-index securities have on the overall performance of the Fund.

New Accounting Pronouncement

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-08, “Financial Services-Investment Companies: Amendments to the Scope, Measurement and Disclosure Requirements”, which is effective for reporting periods beginning after December 15, 2013. This update modifies the criteria used in defining an investment company under U.S. GAAP. It also sets forth certain measurement and disclosure requirements. At this time, the Trust’s management is evaluating the impact this pronouncement may have on the Trust’s financial statements, if any.

3. Securities Valuation

Investments are valued at fair value pursuant to valuation procedures approved by the Trust’s Board of Trustees (the “Board”). The valuation procedures assign to SFIMC the responsibility for determining fair value using the processes and factors as outlined in the valuation procedures. If SFIMC cannot determine fair value based on the valuation procedures, the Board or the Executive Committee of the Board will determine fair value.

Fair value is defined as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier hierarchy is used to classify fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in three broad levels as follows:

• Level 1 - Unadjusted quoted prices in active markets that are accessible to the Funds for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, quoted prices for similar instruments in active markets, interest rates, yield curves and credit spreads. For assets or liabilities with a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available. These inputs, based on the best information available in the circumstances, would include reasonably available information about the assumptions that a market participant would use in valuing the asset or liability and might include SFIMC’s own data.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure the fair value of an asset or liability might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

Stocks, closed-end registered investment companies and exchange-traded funds (“ETFs”) traded on securities exchanges, or in an over-the-counter market in which transaction prices are reported, are valued at the last sales price on the day of valuation or, if there are no reported sales on that day, at the last reported bid price for the day. Stocks traded on NASDAQ are valued at the NASDAQ Official Closing Price. Long-term debt securities and U.S. Treasury bills are generally valued using quotations provided by an independent pricing service. All of the securities of the Money Market Fund and short-term debt securities with remaining maturities of 60 days or less (other than U.S. Treasury bills) held by any of the other Non-feeder Funds are generally valued on an amortized cost basis, which approximates market value. Investments in open-end investment companies are valued each day based on the closing net asset value of the respective fund. Futures contracts are valued at the settlement price established each day on the exchange on which they are traded. Forward foreign currency contracts are valued daily using quoted forward exchange rates. Short sales, if any, are valued at market value.

Portfolio securities that are primarily traded on foreign securities exchanges (“foreign securities”) are valued at the closing values of such securities on the respective exchange where each security is primarily traded. SFIMC may determine that a market quotation for a foreign security held by a Fund is not reliable because of events or circumstances that have occurred between the time of the market quotation and the time the net asset value of the Fund is calculated (“subsequent event”). A subsequent event might include company-specific developments, a development that might affect an entire market or region, a potentially global development or a significant change in one or more U.S. securities indices. If SFIMC determines that the market quotation for a foreign security is not reliable, SFIMC may use an independent statistical fair value service to assist in determining value, or SFIMC may determine the foreign security’s value in SFIMC’s reasonable judgment.

For securities other than foreign securities, for which market prices are not readily available or are considered unreliable, SFIMC is required to obtain bid price quotations from brokers or dealers in the securities. If SFIMC cannot obtain a quotation for the security or if SFIMC believes the quotation does not represent the security’s fair value, then SFIMC will determine the security’s value in SFIMC’s reasonable judgment.

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In determining a value based on reasonable judgment, SFIMC may use different methodologies, including multiple of earnings, multiple of book value, discount from market of a similar freely traded security or, for debt securities, yield to maturity. Other factors SFIMC may consider in determining value for a security include, but are not limited to, fundamental analytical data relating to the security, the nature and duration of any restrictions on disposition of the security, the last traded price of the security, significant global or regional events such as political unrest, natural disasters, and war, and significant movements in major market indices, exchange traded funds, index futures or other financial instruments in the U.S. or other markets. All securities valued based on SFIMC’s reasonable judgment are subsequently reported to the Board on a quarterly basis.

SFIMC reviews the pricing methodologies of the Funds’ approved pricing vendors, including reviewing a vendor’s key inputs and assumptions in valuing securities. SFIMC also engages in transaction back-testing with respect to portfolio securities sold by the Funds to compare unrealized gains and losses to realized gains and losses.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value each Fund’s assets and liabilities as of December 31, 2013:

	Investments in Securities								Derivative Instruments
Fund	Level 1		Level 2		Level 3		Total		Level 1		Level 2			Level 3		Total
Equity Fund									$	—	$	—		$	—	$	—
Common Stocks (a)	$	413,654,476	$	—	$	—	$	413,654,476
Short-term Investments		3,667,660		—		—		3,667,660
Small/Mid Cap Equity Fund										—		—			—		—
Common Stocks (a)		262,630,756		—		—		262,630,756
Registered Investment Companies (a)		1,255,225		—		—		1,255,225
Short-term Investments		3,256,182		—		—		3,256,182
International Equity Fund										—		(892	)		—		(892	)
Common Stocks (a)		139,604,370		763,117		—		140,367,487
Preferred Stocks (a)		742,142		—		—		742,142
Short-term Investments		3,372,646		—		—		3,372,646
S&P 500 Index Fund										700,997		—			—		700,997
Common Stocks (a)		847,131,405		—		—		847,131,405
Short-term Investments		29,503,657		—		—		29,503,657
Small Cap Index Fund										219,772		—			—		219,772
Common Stocks (a)		419,453,722		0		6,216		419,459,938
Registered Investment Companies (a)		4,892,486		—		—		4,892,486
Short-term Investments		4,169,507		774,900		—		4,944,407
International Index Fund										175,141		3,128			—		178,269
Common Stocks (a)		249,489,962		5,058		0		249,495,020
Preferred Stocks (a)		1,632,314		—		—		1,632,314
Short-term Investments		1,451,627		—		—		1,451,627
Equity and Bond Fund										—		—			—		—
Registered Investment Companies		255,252,917		—		—		255,252,917
Bond Fund										—		—			—		—
Corporate Bonds (a)		—		438,584,974		—		438,584,974
Commercial Mortgage-Backed
Securities		—		449,901		—		449,901
Agency Commercial
Mortgage-Backed Securities		—		73,084,675		—		73,084,675
Agency Mortgage-Backed Securities		—		61,788,470		—		61,788,470
Agency Notes & Bonds		—		7,685,437		—		7,685,437
U.S. Treasury Obligations		—		92,605,498		—		92,605,498
Short-term Investments		4,486,143		—		—		4,486,143
(a)    Industry classification and/or country is disclosed in the Schedules of Investments.

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NOTES TO FINANCIAL STATEMENTS (continued)

	Investments in Securities								Derivative Instruments
Fund	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Tax Advantaged Bond Fund										—		—		—		—
Long-term Municipal Bonds	$	—	$	462,348,100	$	—	$	462,348,100
Short-term Investments		11,711,248		—		—		11,711,248
Money Market Fund										—		—		—		—
Short-term Investments		1,778,499		316,086,804		—		317,865,303
LifePath Retirement Fund										—		—		—		—
Investments in securities in Master Portfolios		—		1,081,218,544		—		1,081,218,544
LifePath 2020 Fund										—		—		—		—
Investments in securities in Master Portfolios		—		1,729,227,358		—		1,729,227,358
LifePath 2030 Fund										—		—		—		—
Investments in securities in Master Portfolios		—		1,605,080,085		—		1,605,080,085
LifePath 2040 Fund										—		—		—		—
Investments in securities in Master Portfolios		—		1,176,386,412		—		1,176,386,412
LifePath 2050 Fund										—		—		—		—
Investments in securities in Master Portfolios		—		183,253,915		—		183,253,915

On December 31, 2012, substantially all of the common stocks and preferred stocks in the International Equity Fund and International Index Fund were fair valued using the independent statistical fair value service in accordance with valuation procedures approved by the Trust’s Board of Trustees, and were therefore valued using Level 2 inputs. On December 31, 2013, substantially all of the common stocks and preferred stocks in these Funds were valued at last traded price (except as noted on the Schedules of Investments), because the Trust’s valuation procedures did not require the use of the independent statistical fair value service. Accordingly, using the end of the reporting period method for determining when transfers between levels are recognized, common stocks and preferred stocks valued on December 31, 2013 at $140,346,512 were transferred from Level 2 to Level 1 in the International Equity Fund and $251,122,276 of common stocks and preferred stocks were transferred from Level 2 to Level 1 in the International Index Fund. For the remaining Funds, there were no transfers of securities between Level 1 and Level 2 as of December 31, 2013 as compared to December 31, 2012.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	Small Cap Index Fund Investments in Securities
Balance as of December 31, 2012		$	0
Accrued discounts/premiums			—
Realized gain (loss)			—
Change in unrealized appreciation (depreciation)			—
Purchases			—
Sales			—
Transfers in (a)			6,216
Transfers out (a)			—
Balance as of December 31, 2013		$	6,216
(a)    Using the end of the reporting period method for determining when transfers between levels are recognized.

The International Index Fund did not hold any Level 3 securities valued at other than zero as of December 31, 2012 or for the year ended December 31, 2013. The remaining Funds did not hold any Level 3 securities as of December 31, 2012 or for the year ended December 31, 2013.

Derivative instruments, such as futures and foreign currency contracts, are valued at the unrealized appreciation (depreciation) of the instrument. For more information, see Note 5 Derivative Instruments.

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4. Investments in Master Portfolios

The Feeder Funds, through their investments in the Master Portfolios, are diversified, open-end management investment companies. The Feeder Funds invest all of their assets in the Master Portfolios.

The Master Portfolios are diversified, open-end management investment companies, each of which has an investment objective substantially similar to that of its corresponding Feeder Fund. The financial statements of each Master Portfolio, including Schedules of Investments, are included elsewhere in this report.

The percentage ownership in the Master Portfolios held by the Feeder Funds as of December 31, 2013 is detailed below:

Feeder Fund	Invests in Master Portfolio	% ownership interest held by the Feeder Funds
LifePath Retirement Fund	LifePath Retirement Master Portfolio	68.16%
LifePath 2020 Fund	LifePath 2020 Master Portfolio	61.08%
LifePath 2030 Fund	LifePath 2030 Master Portfolio	60.54%
LifePath 2040 Fund	LifePath 2040 Master Portfolio	56.98%
LifePath 2050 Fund	LifePath 2050 Master Portfolio	44.13%

5. Derivative Instruments

The S&P 500 Index Fund, Small Cap Index Fund and International Index Fund are subject to equity price risk in the normal course of pursuing their investment objectives. These Funds entered into stock index futures contracts to gain exposure to market fluctuations, as the use of these instruments was more efficient or cost effective than actually buying the underlying securities. These contracts obligated those Funds to make or take delivery of a derivative instrument or the cash value of a securities index at a specified future date at a specified price. Realized and unrealized gains and losses from these contracts are reflected in the Statements of Operations. Unrealized gains and losses on open futures contracts are reflected as a component of net unrealized appreciation (depreciation) in the Statements of Assets and Liabilities, and in other assets in the Schedules of Investments. Margin requirements are established by the broker or clearing house for exchange-traded and centrally cleared futures contracts. Daily fluctuations in the margin requirements for futures contracts are recorded as variation margin receivable or payable on the Statements of Assets and Liabilities. Upon entering into a futures contract, these Funds bore the risk of futures contracts’ prices moving unexpectedly, in which case, the Funds might not have been able to achieve the anticipated benefits of the futures contract and might realize a loss. With futures, there is minimal counterparty credit risk to a Fund since futures are exchange traded and the exchange’s clearing house, as the ultimate counterparty to all exchange traded futures, guarantees the futures against default.

The International Equity and International Index Funds are subject to foreign currency exchange risk in the normal course of pursuing their investment objectives. In an attempt to decrease exposure to this risk, both Funds engaged in transaction hedging and the International Index Fund engaged in portfolio hedging with the objective to protect against variations in exchange rates. Transaction hedging involved the purchase and sale of forward foreign currency contracts between trade date and settlement date on security transactions. Portfolio hedging involved selling forward foreign currency contracts with respect to the actual or anticipated portfolio security position denominated or quoted in the particular currency. Realized and unrealized gains and losses on forward foreign currency contracts are reflected in the Statements of Operations. Unrealized gains and losses on forward foreign currency contracts are reflected as a component of net unrealized appreciation (depreciation) in the Statements of Assets and Liabilities, and in other assets in the Schedule of Investments. These Funds bore the market risk that arises from changes in foreign currency rates and the credit risk should a counterparty fail to perform under such contracts, and as a result, might realize a loss.

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NOTES TO FINANCIAL STATEMENTS (continued)

As of December 31, 2013, the fair value of derivative instruments, which are also disclosed in the Schedules of Investments, was as follows:

		Asset Derivatives				Liability Derivatives
Fund	Derivatives not accounted for as hedging instruments	Statements of Assets and Liabilities Location	Value			Statements of Assets and Liabilities Location	Value
International Equity Fund	Forward Foreign Currency Contracts	Unrealized gain on forward foreign currency contracts	$	234		Unrealized loss on forward foreign currency contracts	$	1,126
Total			$	234			$	1,126
		Variation Margin;				Variation Margin;
S&P 500 Index Fund	Stock Index Futures Contracts	Analysis of Net Assets - Net Unrealized Appreciation	$	700,997	(a)	Analysis of Net Assets - Net Unrealized Depreciation	$	—
Total			$	700,997			$	—
		Variation Margin;				Variation Margin;
Small Cap Index Fund	Stock Index Futures Contracts	Analysis of Net Assets - Net Unrealized Appreciation	$	219,772	(a)	Analysis of Net Assets - Net Unrealized Depreciation	$	—
Total			$	219,772			$	—
International Index Fund	Forward Foreign Currency Contracts	Unrealized gain on forward foreign currency contracts	$	11,401		Unrealized loss on forward foreign currency contracts	$	8,273
		Variation Margin;				Variation Margin;
International Index Fund	Stock Index Futures Contracts	Analysis of Net Assets- Net Unrealized Appreciation		175,141	(a)	Analysis of Net Assets - Net Unrealized Depreciation		—
Total			$	186,542			$	8,273
(a)    Represents cumulative unrealized gain (loss) of futures contracts. Variation margin disclosed on the Statements of Assets and Liabilities is for the last day of the period.

As of December 31, 2013, the effect of derivative instruments on the Statements of Operations was as follows:

Fund	Derivatives  not accounted for as hedging instruments	Amount of Realized Gain (Loss) on Derivatives Recognized in Income					Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
		Futures		Forward Currency Contracts			Futures		Forward Currency Contracts
International Equity Fund	Forward Foreign Currency Contracts	$	—	$	(2,474	)	$	—	$	(184	)
S&P 500 Index Fund	Stock Index Futures Contracts		5,962,706		—			714,366		—
Small Cap Index Fund	Stock Index Futures Contracts		3,201,874		—			82,616		—
International Index Fund	Forward Foreign Currency Contracts		—		(55,510	)		—		4,423
International Index Fund	Stock Index Futures Contracts		913,141		—			126,878		—

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NOTES TO FINANCIAL STATEMENTS (continued)

As of December 31, 2013, the average quarterly balance of outstanding derivative instruments was as follows:

	Futures Contracts				Foreign Currency Contracts
Fund	Average Number of  Contracts Purchased		Average Notional Value of  Contracts Purchased		Average Number of Contracts Purchased		Average U.S. Dollar Amount of Contracts Purchased		Average Number of Contracts Sold		Average U.S. Dollar Amount of Contracts Sold
International Equity Fund		—	$	—		3	$	329,227		5	$	343,192
S&P 500 Index Fund		304		24,902,573		—		—		—		—
Small Cap Index Fund		76		7,375,419		—		—		—		—
International Index Fund		74		4,255,095		2		324,000		5		2,003,200

In order to better define its contractual rights and to secure rights that will help a Fund mitigate its counterparty risk, the International Equity Fund and International Index Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs over-the-counter (“OTC”) derivatives, including certain forward foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and receivables to create a single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

Collateral and margin requirements differ by type of derivative. Brokers can ask for margin in excess of the minimum in certain circumstances. Collateral terms are contract-specific for OTC derivatives (foreign currency exchange contracts). For financial reporting purposes, cash and non-cash collateral that has been pledged to cover obligations of a Fund, if any, are noted in the Schedules of Investments. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that it believes to be of good standing and by monitoring the financial stability of those counterparties.

Additionally, the netting of assets and liabilities is based on contractual netting/set-off provisions in the ISDA Master Agreement; however, in the event of a default or insolvency of a counterparty, a court could determine that such rights are not enforceable.

For financial reporting purposes, the International Index Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities. The remaining Funds have not invested in any portfolio securities or entered into any derivative transactions with gross exposures on the Statements of Assets and Liabilities that could be netted subject to netting agreements as of December 31, 2013.

As of December 31, 2013, the International Index Fund’s derivative assets and liabilities (by type) were as follows:

Derivatives Instruments:	Assets		Liabilities
Futures contracts	$	173,285	$	—
Forward foreign currency contracts		11,401		8,273
Total derivative assets and liabilities in the Statements of Assets and Liabilities		184,686		8,273
Derivatives not subject to a master netting agreement or similar agreement (“MNA”)		173,285		0
Total assets and liabilities subject to a MNA	$	11,401	$	8,273

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NOTES TO FINANCIAL STATEMENTS (continued)

As of December 31, 2013, the International Index Fund’s derivative assets by counterparty, net of amounts available for offset under a MNA, were as follows:

Counterparty	Derivative Assets subject to a MNA		Derivatives Available for Offset			Net Amount of Derivative Assets (a)
Morgan Stanley and Co. Inc.	$	9,989	$	—		$	9,989
UBS AG		1,412		(1,412	)		—
Total	$	11,401	$	(1,412	)	$	9,989
(a)    Net amount represents the net amount receivable by the Fund from the counterparty in the event of a default.

As of December 31, 2013, the International Index Fund’s derivative liabilities by counterparty, net of amounts available for offset under a MNA, were as follows:

Counterparty	Derivative Liabilities subject to a MNA			Derivatives Available for Offset		Net Amount of Derivative Liabilities (a)
UBS AG	$	(8,092	)	$	1,412	$	(6,680	)
Goldman Sachs Capital Markets LP		(181	)		—		(181	)
Total	$	(8,273	)	$	1,412	$	(6,861	)
(a)    Net amount represents the net amount payable by the Fund to the counterparty in the event of a default.

6. Income Taxes and Distributions to Shareholders

As of December 31, 2013, the Trust’s management has completed a review of uncertain tax positions taken by the Funds and determined that no tax liability was required for unrecognized tax benefits, and no additional disclosures were needed. Generally, the tax authorities can initiate examinations of tax returns within the three year period beginning on the date such returns are filed. As a result, some tax returns are still open and subject to examination. In addition, as of December 31, 2013, management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

As of December 31, 2013, aggregate securities holdings’ unrealized gains and losses based on cost for federal income tax purposes for certain Funds were as follows:

Fund	Cost of Investments for Federal Tax Purposes		Gross  Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Equity Fund	$	314,086,779	$	105,618,194	$	(2,382,837	)	$	103,235,357
Small/Mid Cap Equity Fund		217,040,552		53,001,564		(2,899,953	)		50,101,611
International Equity Fund		112,154,737		34,997,183		(2,669,645	)		32,327,538
S&P 500 Index Fund		512,627,605		371,386,607		(7,379,150	)		364,007,457
Small Cap Index Fund		298,288,079		161,661,004		(30,652,252	)		131,008,752
International Index Fund		188,692,268		84,416,270		(20,529,577	)		63,886,693
Equity and Bond Fund		227,891,550		27,361,367		—			27,361,367
Bond Fund		681,554,975		18,643,869		(21,513,746	)		(2,869,877	)
Tax Advantaged Bond Fund		481,661,146		9,194,964		(16,796,762	)		(7,601,798	)
Money Market Fund		317,865,303		—		—			—

The differences between the cost of investments for federal income tax purposes and the cost of investments reflected on the Schedules of Investments are primarily related to the timing of recognition of gains and losses and investment income.

The Master Portfolios are organized as partnerships for federal income tax purposes. Information relating to the cost of investments, gross and net unrealized appreciation (depreciation) and other tax matters for the Master Portfolios may be found in the MIP Schedules of Investments which are included in this report.

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NOTES TO FINANCIAL STATEMENTS (continued)

The Equity Fund, Small/Mid Cap Equity Fund, International Equity Fund, S&P 500 Index Fund, Small Cap Index Fund, International Index Fund, Equity and Bond Fund, LifePath 2020 Fund, LifePath 2030 Fund, LifePath 2040 Fund and LifePath 2050 Fund declare and pay dividend and capital gain distributions, if any, at least annually.

The Bond Fund, Tax Advantaged Bond Fund and Money Market Fund declare dividends daily and distribute dividends monthly on the last business day of the month. Capital gain distributions on these Funds, if any, are paid at least annually.

The LifePath Retirement Fund declares and distributes dividends quarterly and capital gain distributions, if any, at least annually.

After utilizing capital loss carryforwards to offset realized capital gains in 2013, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. Future capital loss carryforward utilization in any given year may be subject to Internal Revenue Code limitations. As of December 31, 2013, if not applied, the carryforwards will expire as follows:

			Non Expiring				Year of Expiration
	Utilized		Short-term		Long-term		2016		2017		2018		Total
Equity Fund	$	48,099,391	$	—	$	—	$	—	$	35,406,557	$	—	$	35,406,557
Small/Mid Cap Equity Fund		9,174,682		—		—		—		—		—		—
International Equity Fund		10,575,258		—		—		—		7,794,030		2,909,152		10,703,182
S&P 500 Index Fund		7,936,234		—		—		—		6,990,631		10,032,679		17,023,310
International Index Fund		21,656		—		9,949,264		5,140,621		7,747,891		4,077,752		26,915,528
Equity and Bond Fund		166,725		—		—		—		—		—		—
Bond Fund		831,455		—		—		—		—		—		—
Tax Advantaged Bond Fund		44,385		1,092,944		—		—		—		—		1,092,944
LifePath 2030 Fund		7,242,040		—		—		—		—		—		—
LifePath 2040 Fund		14,126,953		—		—		—		—		—		—

Capital losses incurred on or after January 1, 2011 are permitted to carry forward indefinitely. These losses must be utilized prior to losses incurred before January 1, 2011. Therefore, any losses incurred prior to 2011 may be more likely to expire unused.

As of December 31, 2013, in accordance with federal tax regulations, the components of distributable earnings on a tax basis were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-term  Gain		Unrealized Appreciation (Depreciation)			Accumulated Capital and Other Losses			Total
Equity Fund	$	236,470	$	—	$	103,235,357		$	(35,406,557	)	$	68,065,270
Small/Mid Cap Equity Fund		—		9,272,683		50,101,611			—			59,374,294
International Equity Fund		841,746		—		32,332,081			(10,703,182	)		22,470,645
S&P 500 Index Fund		734,507		—		364,007,458			(18,196,012	)		346,545,953
Small Cap Index Fund		816,156		2,741,307		131,008,752			—			134,566,215
International Index Fund		73,921		—		64,025,737			(27,163,614	)		36,936,044
Equity and Bond Fund		72,567		523,672		27,361,367			—			27,957,606
Bond Fund		48,913		108,687		(2,869,877	)		(48,913	)		(2,761,190	)
Tax Advantaged Bond Fund		—		—		(7,601,798	)		(1,548,460	)		(9,150,258	)
Money Market Fund		—		638		—			—			638
LifePath Retirement Fund		2,384,261		7,532,708		66,981,127			—			76,898,096
LifePath 2020 Fund		5,617,555		19,226,256		146,015,364			—			170,859,175
LifePath 2030 Fund		6,735,572		17,982,795		162,286,577			—			187,004,944
LifePath 2040 Fund		5,788,151		15,322,363		131,401,669			—			152,512,183
LifePath 2050 Fund		902,550		2,694,291		19,925,797			—			23,522,638

The difference between these amounts and the undistributed net investment income reported on the Statements of Assets and Liabilities as of December 31, 2013 relates to one or more of the following: short-term capital gains, forward foreign currency contracts, mark-to-market of Passive Foreign Investment Companies (“PFICs”), post-October loss deferrals, return of capital transactions, and nondeductible start-up expenses.

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NOTES TO FINANCIAL STATEMENTS (continued)

From November 1, 2013 through December 31, 2013, the S&P 500 Index Fund incurred $1,172,702 in realized losses, the International Index Fund incurred $51,538 in specified losses and $196,548 in realized losses, the Tax Advantaged Bond Fund incurred $455,516 in realized losses. As permitted by the Internal Revenue Code, the Funds intend to elect to defer these losses and treat them as arising on January 1, 2014.

The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for futures contracts, the recognition of net realized losses, net operating losses, the timing of Fund distributions, and foreign currency transactions. As a result, net investment income and net realized gain or loss on investment transactions for a reporting period may differ from distributions during such period. Accordingly, each Fund may periodically make reclassifications among certain of its capital accounts without impacting its net asset value.

As of December 31, 2013, these reclassifications were as follows:

Fund	Paid in Capital			Accumulated Net Realized Gain (Loss)			Net Unrealized Appreciation (Depreciation)		Accumulated Undistributed Net Investment Income  (Loss)
Small/Mid Cap Equity Fund	$	(751,908	)	$	11,783		$	—	$	740,125
International Equity Fund		—			(190,023	)		—		190,023
S&P 500 Index Fund		2			(12,856	)		—		12,854
Small Cap Index Fund		(6,431	)		(73,121	)		—		79,552
International Index Fund		—			198,480			—		(198,480	)
LifePath Retirement Fund		—			(309,750	)		—		309,750
LifePath 2020 Fund		—			(417,593	)		—		417,593
LifePath 2030 Fund		—			(298,631	)		—		298,631
LifePath 2040 Fund		—			(165,730	)		—		165,730
LifePath 2050 Fund		(15,119	)		(7,001	)		—		22,120

The tax character of distributions was designated as follows for the years ended December 31, 2013 and December 31, 2012, respectively:

2013	Tax Exempt Income		Ordinary Income		Long- term Capital Gain		Total
Small Cap Index Fund	$	—	$	2,917,895	$	18,518,902	$	21,436,797
Tax Advantaged Bond Fund		14,623,258		4,742		—		14,628,000
LifePath Retirement Fund		—		17,579,941		26,510,344		44,090,285
LifePath 2020 Fund		—		36,494,091		49,390,738		85,884,829
LifePath 2030 Fund		—		34,085,772		49,624,351		83,710,123
LifePath 2040 Fund		—		21,141,028		39,664,550		60,805,578
LifePath 2050 Fund		—		5,166,805		5,982,396		11,149,201

2012	Tax Exempt Income		Ordinary Income		Long- term Capital Gain		Total
Tax Advantaged Bond Fund	$	11,183,093	$	7,041	$	7,190	$	11,197,324
LifePath Retirement Fund		—		19,101,790		12,672,277		31,774,067
LifePath 2020 Fund		—		22,916,882		—		22,916,882
LifePath 2050 Fund		—		1,663,900		1,784,032		3,447,932

For the remaining Funds, the tax distributions of ordinary income were the same as the distributions from net investment income reflected in the Statement of Changes in Net Assets for the years ended December 31, 2013 and December 31, 2012.

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7. Fees and Other Transactions with Affiliates

Investment Advisory and Management Services Agreement

The Trust has entered into an investment advisory and management services agreement with SFIMC, which serves as the Trust’s investment adviser and conducts the business and affairs of the Trust. Each Fund pays SFIMC an investment advisory and management services fee based upon that Fund’s average daily net assets. The fee is accrued daily and paid to SFIMC monthly. The rates for the Feeder Funds include the fee for BlackRock Fund Advisors (“BlackRock”) investment advisory services to the Master Portfolios.

Equity Fund	0.60	%	Tax Advantaged Bond Fund	0.10	%
Small/Mid Cap Equity Fund	0.80	%	Money Market Fund	0.10	%
International Equity Fund	0.80	%	LifePath Retirement Fund	0.70	%
S&P 500 Index Fund (a)	0.18	%	LifePath 2020 Fund	0.70	%
Small Cap Index Fund (b)	0.33	%	LifePath 2030 Fund	0.70	%
International Index Fund (b)	0.48	%	LifePath 2040 Fund	0.70	%
Equity and Bond Fund	None		LifePath 2050 Fund	0.70	%
Bond Fund	0.10	%
(a)    Through May 11, 2012, investment advisory and management services for the S&P 500 Index Fund were 0.20% of average daily net assets. (b)    Through September 30, 2013, investment advisory and management services for the Small Cap Index Fund and International Index Fund were 0.35% and 0.50% of average daily net assets, respectively.

SFIMC does not receive an investment advisory and management services fee for performing its services for the Equity and Bond Fund. However, SFIMC receives investment advisory and management services fees from managing the underlying funds into which the Equity and Bond Fund invests. The Equity and Bond Fund pays no sales loads or similar compensation to SFIMC to acquire shares of each Fund in which it invests. Because the underlying funds have varied expenses and fee levels and the Equity and Bond Fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the Equity and Bond Fund will vary.

SFIMC has engaged Bridgeway Capital Management, Inc. (“Bridgeway”) and Westwood Management Corp. (“Westwood”) as the investment sub-advisers to provide day-to-day portfolio management for the Equity Fund; Bridgeway and Rainier Investment Management, LLC (“Rainier”) as the investment sub-advisers to provide day-to-day portfolio management for the Small/Mid Cap Equity Fund; Marsico Capital Management, LLC (“Marsico”) and Northern Cross, LLC (“Northern Cross”) as the investment sub-advisers to provide day-to-day portfolio management for the International Equity Fund; BlackRock as the investment sub-adviser to provide day-to-day portfolio management for the S&P 500 Index Fund; and Northern Trust Investments, Inc. (“Northern Trust”) as the investment sub-adviser to provide day-to-day portfolio management for the Small Cap Index Fund and International Index Fund.

In accordance with the investment objective of the Fund or Funds each sub-advises, Bridgeway, Westwood, Rainier, Marsico, Northern Cross, BlackRock, and Northern Trust determine which securities to buy and sell, select the brokers and dealers to effect the transactions, and negotiate commissions. Bridgeway’s, Westwood’s, Rainier’s, Marsico’s, Northern Cross’s, BlackRock’s, and Northern Trust’s sub-advisory fees for managing the respective portfolios are paid by SFIMC. No additional advisory fees are charged to the Funds for the services of the sub-advisers.

For the year ended December 31, 2013, the following fees were earned by Bridgeway, Westwood, Rainier, Marsico, Northern Cross, BlackRock and Northern Trust for providing sub-advisory services (although not all amounts indicated were paid during that period):

	Bridgeway		Westwood		Rainier		Marsico		Northern Cross		BlackRock		Northern Trust
Equity Fund	$	824,048	$	630,210	$	—	$	—	$	—	$	—	$	—
Small/Mid Cap Equity Fund		716,779		—		667,769		—		—		—		—
International Equity Fund		—		—		—		336,953		390,666		—		—
S&P 500 Index Fund		—		—		—		—		—		147,633		—
Small Cap Index Fund		—		—		—		—		—		—		393,075
International Index Fund		—		—		—		—		—		—		259,760
Total Sub-Advisory Fees	$	1,540,827	$	630,210	$	667,769	$	336,953	$	390,666	$	147,633	$	652,835

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NOTES TO FINANCIAL STATEMENTS (continued)

Distribution and Shareholder Services Agreements

The Trust has entered into a distribution and service plan pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, with State Farm VP Management Corp. (“VP Management Corp.”). Under terms of this plan, each Fund pays VP Management Corp. an annual fee based on a specified percentage of average daily net assets, up to the following amounts (not all Funds offer all classes shown):

	Class A			Class B			Legacy Class A			Legacy Class B			Class R-1			Class R-2
Small/Mid Cap Equity Fund (a)		0.25	%		0.50	%		0.25	%		0.65	%		0.50	%		0.30	%
International Equity Fund (b)		0.25	%		0.60	%		0.25	%		0.65	%		0.50	%		0.30	%
Small Cap Index Fund (c)		0.25	%		0.00	%		0.25	%		0.65	%		0.50	%		0.30	%
International Index Fund (d)		0.25	%		0.45	%		0.25	%		0.65	%		0.50	%		0.30	%
Equity and Bond Fund (e)		0.25	%		0.65	%		0.25	%		0.65	%		0.50	%		0.30	%
Bond Fund		0.25	%		0.65	%		0.25	%		0.65	%		0.50	%		0.30	%
Tax Advantaged Bond Fund		0.25	%		0.65	%		0.25	%		0.65	%
Money Market Fund		0.15	%		0.55	%		0.15	%		0.55	%		0.40	%		0.20	%
LifePath Retirement Fund (f)		0.25	%		0.55	%		0.25	%		0.65	%		0.50	%		0.30	%
All Other Funds		0.25	%		0.95	%		0.25	%		0.65	%		0.50	%		0.30	%
(a)       Through June 30, 2013, the distribution and service (12b-1) fees for the Small/Mid Cap Equity Fund Class B shares were 0.95% of average daily net assets. For the period July 1, 2013 through November 10, 2013, the distribution and service (12b-1) fees for the Small/Mid Cap Equity Fund Class B shares were 0.60% of average daily net assets. (b)       Through December 31, 2012, the distribution and service (12b-1) fees for the International Equity Fund Class B shares were 0.95% of average daily net assets. (c)       Through September 30, 2013, the distribution and service (12b-1) fees for Small Cap Index Fund Class B shares were 0.95% of average daily net assets. For the period October 1, 2013 through November 10, 2013, the distribution and service (12b-1) fees for the Small Cap Index Fund Class B shares were 0.65% of average daily net assets. For period November 11, 2013 through December 8, 2013, the distribution and service (12b-1) fees for the Small Cap Index Fund Class B shares were 0.45% of average daily net assets. Effective January 1, 2014, the distribution and service (12b-1) fees for Small Cap Index Fund Class B shares will increase to 0.45% of average daily net assets. (d)       Through June 30, 2013, the distribution and service (12b-1) fees for the International Index Fund Class B shares were 0.95% of average daily net assets. For the period July 1, 2013 through November 10, 2013, the distribution and service (12b-1) fees for the International Index Fund Class B shares were 0.65% of average daily net assets. (e)       Through June 30, 2013, the distribution and service (12b-1) fees for the Equity and Bond Fund Class B shares were 0.95% of average daily net assets. (f)        Through April 4, 2012, the distribution and service (12b-1) fees for LifePath Retirement Fund Class B were 0.95% of average daily net assets. For the period April 5, 2012 through December 31, 2012, the distribution and service (12b-1) fees for the LifePath Retirement Fund Class B shares were 0.75% of average daily net assets.

The annual fee amount is payable to VP Management Corp. by each Fund only to the extent VP Management Corp. has incurred distribution expenses to be reimbursed. Any distribution expenses incurred by VP Management Corp. and not otherwise reimbursed by the Funds under the distribution plan can be carried forward and reimbursed in a later time period in amounts not to exceed the annual fee percentages outlined above. At December 31, 2013, VP Management Corp. had not been reimbursed for the following amounts (the TOTAL below is the cumulative amount of unreimbursed distribution expenses incurred since the commencement of operations of the Trust, although the total amount incurred by Fund depends upon the timing of commencement of the applicable section of the distribution plan for each such Fund and its classes):

Equity Fund	$	9,368,194	Tax Advantaged Bond Fund	$	15,144,329
Small/Mid Cap Equity Fund		9,360,449	Money Market Fund		14,506,366
International Equity Fund		6,631,360	LifePath Retirement Fund		17,702,085
S&P 500 Index Fund		30,737,517	LifePath 2020 Fund		37,108,021
Small Cap Index Fund		15,725,330	LifePath 2030 Fund		28,721,110
International Index Fund		10,661,014	LifePath 2040 Fund		19,749,778
Equity and Bond Fund		11,992,492	LifePath 2050 Fund		1,154,761
Bond Fund		18,352,411	TOTAL	$	246,915,217

The Trust has a separate shareholder services agreement with SFIMC. Each Fund, except the Equity and Bond Fund, pays SFIMC a fee of 0.25% of average daily net assets of Class A, Class B, Legacy Class A, Legacy Class B and Institutional shares and, for the current year, 0.32% of Class R-1, Class R-2 and Class R-3 shares. The Equity and Bond Fund does not directly pay SFIMC any shareholder services fee for Class A, Class B, Legacy Class A, Legacy Class B or Institutional shares and, for the current year, directly pays 0.07% of average daily net assets of Class R-1, Class R-2 and Class R-3 shares. However, SFIMC receives a shareholder services fee from managing the Equity Fund and Bond Fund into which the Equity and Bond Fund invests. Additionally, SFIMC receives proceeds from the account fee imposed on certain shareholders of the Trust.

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NOTES TO FINANCIAL STATEMENTS (continued)

Expense Reduction Agreements

Effective May 1, 2013, for all Funds, SFIMC has contractually agreed to reimburse each Class if, and to the extent, the Class’s total annual operating expenses (for the Feeder Funds, this includes net expenses incurred at the Master Portfolio and Underlying Fund levels as applicable) exceed the percentage of each Class’s average daily net assets (“expense reimbursement threshold” or “ERT”) indicated in the table below. With respect to the Equity and Bond Fund, SFIMC has contractually agreed to reimburse all expenses directly incurred by each Class other than 12b-1 distribution fees, shareholder services fees directly incurred by the Fund and acquired fund fees and expenses. SFIMC may not discontinue these agreements to reimburse each class before April 30, 2014, without the consent of the Board. Through April 30, 2013, such arrangements were voluntary.

	Class A			Class B			Legacy Class A			Legacy Class B			Institutional			Class R-1			Class R-2			Class R-3
Equity Fund		1.20	%		1.90	%		1.20	%		1.60	%		0.95	%		1.52	%		1.32	%		1.02	%
Small/Mid Cap Equity Fund (a)		1.40	%		1.65	%		1.40	%		1.80	%		1.15	%		1.72	%		1.52	%		1.22	%
International Equity Fund (b)		1.50	%		1.85	%		1.50	%		1.90	%		1.25	%		1.82	%		1.62	%		1.32	%
S&P 500 Index Fund (c)		0.78	%		1.48	%		0.78	%		1.18	%		0.53	%		1.10	%		0.90	%		0.60	%
Small Cap Index Fund (d)(e)		0.93	%		0.68	%		0.93	%		1.33	%		0.68	%		1.25	%		1.05	%		0.75	%
International Index Fund (f)(g)		1.18	%		1.38	%		1.18	%		1.58	%		0.93	%		1.50	%		1.30	%		1.00	%
Equity and Bond Fund (h)		0.25	%		0.65	%		0.25	%		0.65	%		—			0.57	%		0.37	%		0.07	%
Bond Fund		0.70	%		1.10	%		0.70	%		1.10	%		0.45	%		1.02	%		0.82	%		0.52	%
Tax Advantaged Bond Fund		0.70	%		1.10	%		0.70	%		1.10	%
Money Market Fund		0.60	%		1.00	%		0.60	%		1.00	%		0.45	%		0.92	%		0.72	%		0.52	%
LifePath Retirement Fund (i)(j)		1.23	%		1.53	%		1.23	%		1.63	%		0.98	%		1.55	%		1.35	%		1.05	%
LifePath 2020 Fund (k)		1.23	%		1.93	%		1.23	%		1.63	%		0.98	%		1.55	%		1.35	%		1.05	%
LifePath 2030 Fund (k)		1.23	%		1.93	%		1.23	%		1.63	%		0.98	%		1.55	%		1.35	%		1.05	%
LifePath 2040 Fund (k)		1.23	%		1.93	%		1.23	%		1.63	%		0.98	%		1.55	%		1.35	%		1.05	%
LifePath 2050 Fund (l)		1.23	%														1.55	%		1.35	%
(a)       For the period July 1, 2013 through November 10, 2013, the ERT for Small/Mid Cap Equity Fund Class B was 1.75%. Through June 30, 2013, the ERT for Small/Mid Cap Equity Fund Class B was 2.10% (b)       Through December 31, 2012, the ERT for International Equity Fund Class B was 2.20%. (c)       Through May 11, 2012, the ERT for S&P 500 Index Fund Class A, Class B, Legacy Class A, Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 was 0.80%, 1.50%, 0.80%, 1.20%, 0.55%, 1.12%, 0.92% and 0.62%, respectively. (d)       Through September 30, 2013, the ERT for Small Cap Index Fund Class A, Legacy Class A, Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 was 0.95%, 0.95%, 1.35%, 0.70%, 1.27%, 1.07% and 0.77%, respectively. (e)       For the period November 11, 2013 through December 8, 2013, the ERT for Small Cap Index Fund Class B was 1.13%. For the period October 1, 2013 through November 10, 2013, the ERT for Small Cap Index Fund Class B was 1.33%. Through September 30, 2013, the ERT for Small Cap Index Fund Class B was 1.65%. Effective January 1, 2014, the ERT for Small Cap Index Fund Class B will increase to 1.13%. (f)        Through September 30, 2013, the ERT for International Index Fund Class A, Legacy Class A, Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 was 1.20%, 1.20%, 1.60%, 0.95%, 1.52%, 1.32% and 1.02%, respectively. (g)       For the period October 1, 2013 through November 10, 2013, the ERT for International Index Fund Class B was 1.58%. For the period July 1, 2013 through September 30, 2013, the ERT for International Index Fund Class B was 1.60%. Through June 30, 2013, the ERT for International Index Fund Class B was 1.90%. (h)       Through June 30, 2013, the ERT for the Equity and Bond Fund Class B was 0.95%. (i)        Through September 30, 2012, the ERT for LifePath Retirement Fund Class A, Legacy Class A, Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3 was 1.30%, 1.30%, 1.70%, 1.05%, 1.62%, 1.42% and 1.12%, respectively. (j)        For the period October 1, 2012 through December 31, 2012, the ERT for LifePath Retirement Fund Class B was 1.73%. For the period April 5, 2012 through Spetember 30, 2012, the ERT for LifePath Retirement Fund Class B was 1.80%. Through April 4, 2012, the ERT for LifePath Retirement Fund Class B was 2.00%. (k)        Through September 30, 2012, the ERT for Class A, Class B, Legacy Class A, Legacy Class B, Institutional, Class R-1, Class R-2 and Class R-3, in LifePath 2020 Fund, LifePath 2030 Fund and LifePath 2040 Fund was 1.30%, 2.00%, 1.30%, 1.70%, 1.05%, 1.62%, 1.42% and 1.12%, respectively. (l)        Through September 30, 2012, the ERT for LifePath 2050 Fund Class A, Class R-1 and Class R-2 was 1.30%, 1.62% and 1.42%, respectively.

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Effective October 1, 2012, SFIMC agreed to reimburse an additional 0.07% of each LifePath Fund’s average daily net assets on an annual basis. Effective May 1, 2013, SFIMC made this agreement contractual. SFIMC may not discountinue this agreement before April 30, 2014 without the consent of the Board. Through April 30, 2013, such arrangement was voluntary. This reimbursement is reflected in the expense reimbursement thresholds shown in the table above.

Beginning in late January 2009, the daily interest income on securities held by the Money Market Fund fell to a level below the amount of operating expenses incurred by the Money Market Fund. Since that time, SFIMC and VP Management Corp. have been voluntarily waiving portions of their fees in amounts necessary to keep the daily net investment income of the Money Market Fund from falling below zero. This arrangement is voluntary and may be eliminated by SFIMC or VP Management Corp. at any time.

SFIMC has agreed to reimburse the Bond Fund for a December 2013 transfer agent error of $109.

Through June 30, 2012, BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BlackRock, served as administrator to certain of the Underlying Funds. Effective July 1, 2012, BlackRock Advisors, LLC (“BAL”), an affiliate of BlackRock, replaced BTC as administrator.

BlackRock has contractually agreed to waive the investment advisory fees charged to the LifePath Master Portfolios in an amount equal to the advisory fees and administration fees, if any, received by BlackRock, BAL or previously BTC, from each investment company in which the Master Portfolios and Underlying Master Portfolios invest through April 30, 2014.

BlackRock has also contractually agreed to provide an offsetting credit against the investment advisory fees BlackRock receives from the LifePath Master Portfolios in an amount equal to the fees and expenses of the MIP independent trustees, counsel to such trustees, and independent registered public accounting firm (“independent expenses”) that are paid by the LifePath Master Portfolios through April 30, 2023. BAL has contractually agreed to provide and previously BTC provided an offsetting credit against the administration fees paid by the Active Stock Master Portfolio to BAL and previously BTC in an amount equal to the independent expenses that are paid by this Underlying Fund through April 30, 2014. Effective December 28, 2012, BAL has contractually agreed to provide and previously BlackRock provided an offsetting credit against the investment advisory fees paid by the CoreAlpha Bond Master Portfolio in an amount equal to the independent expenses paid by this Underlying Fund through April 30, 2014.

BlackRock, BAL and previously BTC may not discontinue or modify this contractual waiver or these offsetting credits without the approval of the Board of Trustees of the Master Portfolios.

BAL has agreed to voluntarily waive and previously BTC waived a portion of its administration fees payable by the Active Stock Master Portfolio in an amount sufficient to maintain the investment advisory fees of the LifePath Master Portfolios, which are not to exceed 0.35% of the average daily net assets of each LifePath Master Portfolio. This arrangement is voluntary and may be terminated at any time.

Related Party Disclosure

As of December 31, 2013, State Farm Mutual Automobile Insurance Company (“Auto Company”), the parent company of SFIMC, owned more than 10% of the outstanding shares of each Class of the following Funds:

	Class A			Class B			Legacy Class A			Legacy Class B			Institutional			Class R-1			Class R-2			Class R-3
Small/Mid Cap Equity Fund		13.96	%		77.99	%		24.08	%		55.84	%		—			37.45	%		13.49	%		51.33	%
International Equity Fund		23.48	%		88.31	%		41.49	%		82.59	%		19.31	%		46.57	%		23.50	%		63.76	%
S&P 500 Index Fund		—			16.22	%		—			—			—			19.99	%		—			46.33	%
Small Cap Index Fund		12.63	%		75.15	%		16.96	%		58.69	%		—			32.73	%		15.40	%		55.97	%
International Index Fund		13.94	%		78.16	%		23.80	%		68.50	%		—			37.36	%		18.48	%		61.15	%
Equity and Bond Fund		12.20	%		79.04	%		13.95	%		62.60	%		—			42.77	%		20.65	%		75.23	%
Bond Fund		—			45.80	%		—			—			—			28.34	%		12.78	%		58.67	%
Tax Advantaged Bond Fund		—			51.67	%		37.90	%		42.89	%
LifePath 2050 Fund		—															23.53	%		14.39	%

On January 9, 2014, Auto Company redeemed all of its outstanding shares from S&P 500 Index Fund Class R-1 and Class R-3. On February 11, 2014, Auto Company redeemed all of its outstanding shares from S&P 500 Index Class B.

Line of Credit

Auto Company, the parent company of SFIMC, has entered into a Line of Credit Agreement with the Trust. Under that agreement, a Fund may request and Auto Company, in its complete discretion, may lend money to a Fund for up to 30 days on an unsecured basis. The S&P 500 Index Fund, Small Cap Index Fund and International Index Fund may not borrow money from Auto Company under the agreement. Auto Company will not lend more than $50 million at any one time to the Funds and to the other mutual funds advised by SFIMC. Under the agreement, a Fund will pay interest to Auto Company on any

185

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NOTES TO FINANCIAL STATEMENTS (continued)

outstanding loan at a benchmark interest rate that approximates the rate that creditworthy corporate issuers pay on short-term commercial paper. The Funds did not borrow under the Line of Credit Agreement during the year ended December 31, 2013.

Officers and Trustees

Certain officers and/or trustees of the Trust are also officers and/or directors of SFIMC. The Trust made no payments to its officers or trustees except for trustees’ fees paid to or accrued for the Trust’s independent trustees.

8. Investment Transactions

For the year ended December 31, 2013, investment transactions (exclusive of short-term instruments) were as follows:

	Purchases (excluding U.S. Government Obligations)		Sales (excluding U.S. Government Obligations)		Purchases of U.S. Government Obligations		Sales of U.S. Government Obligations
Equity Fund	$	252,943,518	$	248,688,336	$	—	$	—
Small/Mid Cap Equity Fund		269,971,020		268,418,310		—		—
International Equity Fund		98,787,253		97,897,384		—		—
S&P 500 Index Fund		60,586,300		21,611,130		—		—
Small Cap Index Fund		62,889,028		51,915,930		—		—
International Index Fund		13,584,468		2,939,445		—		—
Equity and Bond Fund		22,200,000		—		—		—
Bond Fund		164,381,629		60,870,301		—		87,080,625
Tax Advantaged Bond Fund		74,231,658		104,511,770		—		—

9. Fund Share Transactions

At December 31, 2013, the Funds were authorized to issue an unlimited number of shares (no par value) in an unlimited number of classes. Proceeds and payments on Fund shares as shown in the Statements of Changes in Net Assets are in respect of the following number of shares and dollars by class:

Year ended December 31, 2013:

	Class A Dollar Amounts									Class A Share Amounts
2013	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	28,164,124	$	381,222	$	16,373,464	$	12,171,882			3,694,111		44,945		2,092,601		1,646,455
Small/Mid Cap Equity Fund		22,236,215		6,588,623		10,216,327		18,608,511			1,807,997		520,018		820,383		1,507,632
International Equity Fund		9,946,767		328,773		4,638,269		5,637,271			948,909		28,840		436,398		541,351
S&P 500 Index Fund		92,873,872		3,073,893		30,455,718		65,492,047			7,455,740		224,703		2,459,591		5,220,852
Small Cap Index Fund		23,890,002		3,748,674		9,323,619		18,315,057			1,574,079		227,196		611,897		1,189,378
International Index Fund		17,714,832		997,154		7,412,172		11,299,814			1,530,272		79,902		642,787		967,387
Equity and Bond Fund		29,446,842		780,229		9,480,321		20,746,750			3,102,217		79,337		1,000,491		2,181,063
Bond Fund		99,732,394		11,259,512		120,473,813		(9,481,907	)		8,676,372		996,762		10,652,577		(979,443	)
Tax Advantaged Bond Fund		127,326,976		10,249,740		171,330,394		(33,753,678	)		10,858,104		892,389		15,114,410		(3,363,917	)
Money Market Fund		320,261,409		—		275,888,281		44,373,128			320,261,409		—		275,888,281		44,373,128
LifePath Retirement Fund		228,622,019		26,444,245		92,368,095		162,698,169			18,380,628		2,140,612		7,418,736		13,102,504
LifePath 2020 Fund		295,676,248		49,228,964		110,818,972		234,086,240			20,428,485		3,406,838		7,633,621		16,201,702
LifePath 2030 Fund		259,729,898		48,562,299		89,417,246		218,874,951			17,200,870		3,178,182		5,910,352		14,468,700
LifePath 2040 Fund		154,617,025		30,056,304		58,094,154		126,579,175			9,931,352		1,879,686		3,726,204		8,084,834
LifePath 2050 Fund		62,235,280		10,349,183		20,009,523		52,574,940			5,914,825		959,206		1,884,815		4,989,216

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NOTES TO FINANCIAL STATEMENTS (continued)

	Class B Dollar Amounts									Class B Share Amounts
2013	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	464,005	$	—	$	4,093,032	$	(3,629,027	)		61,365		—		513,789		(452,424	)
Small/Mid Cap Equity Fund		438,090		295,046		251,654		481,482			37,335		24,587		21,194		40,728
International Equity Fund		149,091		9,185		106,951		51,325			14,288		817		10,216		4,889
S&P 500 Index Fund		1,599,868		39,248		10,827,725		(9,188,609	)		129,971		2,854		919,946		(787,121	)
Small Cap Index Fund		497,124		166,637		319,855		343,906			33,923		10,280		21,453		22,750
International Index Fund		301,625		32,307		267,026		66,906			26,421		2,587		23,300		5,708
Equity and Bond Fund		765,951		16,894		172,455		610,390			81,275		1,685		18,303		64,657
Bond Fund		1,403,608		188,194		1,294,940		296,862			122,111		16,701		114,178		24,634
Tax Advantaged Bond Fund		757,505		75,666		740,270		92,901			64,849		6,602		65,038		6,413
Money Market Fund		266,667		—		2,728,252		(2,461,585	)		266,667		—		2,728,252		(2,461,585	)
LifePath Retirement Fund		2,055,115		483,007		1,482,206		1,055,916			164,245		38,851		118,653		84,443
LifePath 2020 Fund		4,999,012		1,430,653		3,179,317		3,250,348			348,486		99,628		221,282		226,832
LifePath 2030 Fund		6,628,224		1,940,288		3,780,809		4,787,703			442,657		127,651		253,080		317,228
LifePath 2040 Fund		6,062,534		1,911,323		3,918,899		4,054,958			392,713		120,183		253,645		259,251

	Legacy Class A Dollar Amounts									Legacy Class A Share Amounts
2013	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	8,105,440	$	409,073	$	10,502,798	$	(1,988,285	)		1,036,451		46,432		1,332,687		(249,804	)
Small/Mid Cap Equity Fund		6,563,015		7,215,683		7,161,151		6,617,547			542,736		580,973		593,458		530,251
International Equity Fund		2,252,908		301,038		3,014,539		(460,593	)		213,044		26,155		283,719		(44,520	)
S&P 500 Index Fund		33,293,921		4,524,739		40,745,717		(2,927,057	)		2,691,525		329,078		3,259,398		(238,795	)
Small Cap Index Fund		12,501,466		8,220,116		16,741,602		3,979,980			847,386		502,761		1,123,945		226,202
International Index Fund		6,668,447		1,243,335		8,152,727		(240,945	)		582,964		99,786		704,890		(22,140	)
Equity and Bond Fund		8,491,650		978,315		10,086,233		(616,268	)		895,058		98,874		1,056,013		(62,081	)
Bond Fund		13,085,921		4,360,612		29,569,250		(12,122,717	)		1,141,638		385,657		2,601,779		(1,074,484	)
Tax Advantaged Bond Fund		4,425,114		1,168,720		10,323,219		(4,729,385	)		382,015		101,889		907,088		(423,184	)
Money Market Fund		34,588,308		—		38,992,322		(4,404,014	)		34,588,308		—		38,992,322		(4,404,014	)
LifePath Retirement Fund		29,477,449		11,343,990		39,503,821		1,317,618			2,324,585		899,014		3,108,529		115,070
LifePath 2020 Fund		43,907,491		21,481,724		45,969,923		19,419,292			3,046,017		1,491,785		3,185,965		1,351,837
LifePath 2030 Fund		40,049,536		17,728,493		34,782,629		22,995,400			2,656,914		1,159,482		2,305,217		1,511,179
LifePath 2040 Fund		30,997,593		12,819,280		27,084,138		16,732,735			1,992,504		799,697		1,735,713		1,056,488

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NOTES TO FINANCIAL STATEMENTS (continued)

	Legacy Class B Dollar Amounts									Legacy Class B Share Amounts
2013	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	674,025	$	—	$	3,304,517	$	(2,630,492	)		85,818		—		427,729		(341,911	)
Small/Mid Cap Equity Fund		342,070		633,012		2,123,623		(1,148,541	)		30,064		54,289		187,613		(103,260	)
International Equity Fund		93,154		12,867		968,956		(862,935	)		8,921		1,133		93,405		(83,351	)
S&P 500 Index Fund		1,944,168		232,356		15,551,148		(13,374,624	)		156,918		16,786		1,261,640		(1,087,936	)
Small Cap Index Fund		690,833		643,037		5,954,444		(4,620,574	)		47,801		40,115		419,796		(331,880	)
International Index Fund		287,644		69,804		3,355,424		(2,997,976	)		25,153		5,575		293,860		(263,132	)
Equity and Bond Fund		554,842		69,012		3,501,341		(2,877,487	)		58,436		6,912		369,654		(304,306	)
Bond Fund		502,476		255,247		15,390,728		(14,633,005	)		43,789		22,528		1,324,257		(1,257,940	)
Tax Advantaged Bond Fund		34,245		19,126		15,651,924		(15,598,553	)		3,003		1,662		1,316,198		(1,311,533	)
Money Market Fund		1,359,947		—		4,597,968		(3,238,021	)		1,359,947		—		4,597,967		(3,238,020	)
LifePath Retirement Fund		1,172,135		544,618		10,682,493		(8,965,740	)		92,138		42,993		838,949		(703,818	)
LifePath 2020 Fund		2,101,034		1,478,740		18,688,371		(15,108,597	)		145,945		102,335		1,298,252		(1,049,972	)
LifePath 2030 Fund		2,050,822		1,415,256		17,337,111		(13,871,033	)		137,161		92,500		1,154,816		(925,155	)
LifePath 2040 Fund		1,746,620		1,305,610		12,049,207		(8,996,977	)		112,621		81,347		776,457		(582,489	)

	Institutional Shares Dollar Amounts									Institutional Shares Share Amounts
2013	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	5,518,469	$	286,710	$	3,138,005	$	2,667,174			728,463		33,693		409,358		352,798
Small/Mid Cap Equity Fund		7,148,767		3,986,456		5,381,309		5,753,914			569,758		308,549		429,746		448,561
International Equity Fund		2,962,627		202,402		2,812,061		352,968			278,827		17,600		266,243		30,184
S&P 500 Index Fund		21,899,956		1,580,210		14,314,003		9,166,163			1,756,571		114,590		1,143,633		727,528
Small Cap Index Fund		10,878,385		3,797,437		7,231,758		7,444,064			719,544		228,897		471,403		477,038
International Index Fund		5,702,743		751,604		3,625,787		2,828,560			492,447		60,125		313,970		238,602
Equity and Bond Fund		4,556,102		327,691		3,277,677		1,606,116			482,193		33,465		350,620		165,038
Bond Fund		55,047,035		3,352,855		35,790,744		22,609,146			4,846,746		296,968		3,174,274		1,969,440
Money Market Fund		66,820,078		1,226		67,119,289		(297,985	)		66,820,078		1,226		67,119,289		(297,985	)
LifePath Retirement Fund		20,222,994		3,807,975		13,835,991		10,194,978			1,591,921		301,801		1,091,104		802,618
LifePath 2020 Fund		28,384,253		8,848,580		16,983,375		20,249,458			1,954,955		610,670		1,170,705		1,394,920
LifePath 2030 Fund		33,161,385		10,359,615		16,874,373		26,646,627			2,190,811		674,456		1,111,855		1,753,412
LifePath 2040 Fund		38,936,946		11,824,615		19,036,288		31,725,273			2,495,412		734,019		1,208,246		2,021,185

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NOTES TO FINANCIAL STATEMENTS (continued)

	Class R-1 Dollar Amounts									Class R-1 Share Amounts
2013	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	1,356,083	$	—	$	2,759,488	$	(1,403,405	)		185,622		—		354,445		(168,823	)
Small/Mid Cap Equity Fund		850,699		222,308		1,237,935		(164,928	)		72,665		18,312		104,877		(13,900	)
International Equity Fund		709,823		11,750		739,332		(17,759	)		68,067		1,036		69,855		(752	)
S&P 500 Index Fund		2,361,893		50,781		2,732,231		(319,557	)		193,466		3,696		218,228		(21,066	)
Small Cap Index Fund		804,751		131,572		909,412		26,911			53,818		7,993		62,459		(648	)
International Index Fund		643,502		30,528		1,028,699		(354,669	)		55,552		2,444		88,645		(30,649	)
Equity and Bond Fund		544,163		12,018		1,027,440		(471,259	)		58,798		1,234		110,275		(50,243	)
Bond Fund		1,335,086		89,877		1,858,900		(433,937	)		116,143		7,956		163,757		(39,658	)
Money Market Fund		2,289,326		—		3,340,565		(1,051,239	)		2,289,326		—		3,340,565		(1,051,239	)
LifePath Retirement Fund		2,970,611		235,317		2,772,460		433,468			237,856		18,976		221,776		35,056
LifePath 2020 Fund		6,781,552		817,969		7,158,611		440,910			470,729		56,843		497,587		29,985
LifePath 2030 Fund		10,185,152		1,241,526		7,804,056		3,622,622			682,828		81,679		523,806		240,701
LifePath 2040 Fund		7,567,513		906,743		7,056,962		1,417,294			488,765		56,956		453,872		91,849
LifePath 2050 Fund		2,016,807		204,097		1,505,369		715,535			192,954		18,846		144,437		67,363

	Class R-2 Dollar Amounts									Class R-2 Share Amounts
2013	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	4,177,015	$	37,122	$	5,769,191	$	(1,555,054	)		550,133		4,388		774,984		(220,463	)
Small/Mid Cap Equity Fund		3,417,561		896,636		4,629,373		(315,176	)		285,497		72,368		396,197		(38,332	)
International Equity Fund		1,692,331		41,180		2,622,288		(888,777	)		160,919		3,615		254,042		(89,508	)
S&P 500 Index Fund		6,506,877		187,824		7,301,267		(606,566	)		522,057		13,750		608,655		(72,848	)
Small Cap Index Fund		2,947,045		367,549		3,191,814		122,780			196,238		22,289		218,171		356
International Index Fund		2,414,687		95,974		2,961,405		(450,744	)		208,416		7,703		262,588		(46,469	)
Equity and Bond Fund		1,910,065		47,146		1,975,501		(18,290	)		207,656		4,848		210,690		1,814
Bond Fund		3,550,018		223,579		3,678,601		94,996			308,618		19,835		320,197		8,256
Money Market Fund		8,526,678		—		11,586,000		(3,059,322	)		8,526,678		—		11,586,000		(3,059,322	)
LifePath Retirement Fund		10,827,256		776,381		11,070,138		533,499			852,362		61,380		873,981		39,761
LifePath 2020 Fund		17,777,855		2,194,233		17,215,557		2,756,531			1,238,991		152,377		1,200,595		190,773
LifePath 2030 Fund		18,382,718		2,126,568		21,986,206		(1,476,920	)		1,232,953		139,356		1,483,893		(111,584	)
LifePath 2040 Fund		14,025,233		1,713,299		15,532,747		205,785			907,403		107,148		1,015,858		(1,307	)
LifePath 2050 Fund		6,283,436		376,519		4,859,374		1,800,581			611,913		34,734		455,816		190,831

189

STATE FARM MUTUAL FUND TRUST

NOTES TO FINANCIAL STATEMENTS (continued)

	Class R-3 Dollar Amounts									Class R-3 Share Amounts
2013	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	512,757	$	11,898	$	1,277,759	$	(753,104	)		66,887		1,398		154,924		(86,639	)
Small/Mid Cap Equity Fund		415,525		131,920		197,565		349,880			31,664		10,306		14,822		27,148
International Equity Fund		93,603		9,173		108,374		(5,598	)		8,865		798		9,527		136
S&P 500 Index Fund		579,186		25,826		340,519		264,493			44,885		1,876		27,086		19,675
Small Cap Index Fund		104,188		54,123		125,918		32,393			6,962		3,260		8,494		1,728
International Index Fund		119,082		15,944		98,975		36,051			10,415		1,273		8,612		3,076
Equity and Bond Fund		40,162		4,715		137,706		(92,829	)		4,285		487		14,936		(10,164	)
Bond Fund		225,199		32,950		528,506		(270,357	)		19,609		2,909		47,346		(24,828	)
Money Market Fund		919,756		46		1,626,948		(707,146	)		919,756		46		1,626,948		(707,146	)
LifePath Retirement Fund		183,300		72,768		143,598		112,470			14,515		5,773		11,119		9,169
LifePath 2020 Fund		940,430		146,774		1,076,096		11,108			66,142		10,150		73,185		3,107
LifePath 2030 Fund		1,217,075		194,665		1,529,432		(117,692	)		81,363		12,665		98,203		(4,175	)
LifePath 2040 Fund		864,376		182,462		834,022		212,816			55,220		11,222		52,415		14,027

The following reflects the conversion of shares between classes (reflected as Sales and Redemptions) for the Year ended December 31, 2013.

Fund	Class A Dollar Amounts from Class B		Class A Share Amounts from Class B		Class A Dollar Amounts from Class R-2		Class A Share Amounts from Class R-2		Legacy Class A Dollar Amounts from Legacy Class B		Legacy Class A Share Amounts from Legacy Class B		Class R-2 Dollar Amounts from Class R-1		Class R-2 Share Amounts from Class  R-1
Equity Fund	$	144		17	$	2,821,805		393,009	$	2,211,015		285,767	$	172,080		23,814
Small/Mid Cap Equity Fund		1,684		138		2,460,290		209,208		1,529,175		128,230		273,096		23,089
International Equity Fund		507		48		1,387,949		135,146		639,568		60,749		85,507		8,063
S&P 500 Index Fund		3,955		319		3,531,774		300,321		11,685,166		952,088		500,687		42,805
Small Cap Index Fund		198		12		1,349,874		95,129		4,317,799		297,744		289,468		20,528
International Index Fund		377		34		1,524,559		136,243		2,537,758		222,775		262,902		23,253
Equity and Bond Fund		679		72		852,700		93,089		2,543,439		268,966		492,779		54,315
Bond Fund		747		66		1,836,912		157,810		3,811,375		331,393		601,920		51,710
Tax Advantaged Bond Fund		—		—		—		—		516,898		45,102		—		—
Money Market Fund		—		—		3,687,732		3,687,732		1,108,412		1,108,410		638,398		638,398
LifePath Retirement Fund		13,431		1,082		5,149,121		413,584		8,346,260		657,382		1,043,102		82,106
LifePath 2020 Fund		1,568		107		8,435,849		589,096		15,011,241		1,041,958		2,203,372		154,479
LifePath 2030 Fund		10,473		694		11,735,844		793,499		13,613,617		904,771		3,515,906		237,878
LifePath 2040 Fund		32,778		2,116		8,187,058		540,043		9,052,669		581,909		2,455,008		158,844
LifePath 2050 Fund		—		—		1,610,685		158,376		—		—		577,151		55,648

190

STATE FARM MUTUAL FUND TRUST

NOTES TO FINANCIAL STATEMENTS (continued)

Year ended December 31, 2012:

	Class A Dollar Amounts								Class A Share Amounts
2012	Sales		Reinvestments		Redemptions		Net		Sales		Reinvestments		Redemptions		Net
Equity Fund	$	15,558,731	$	496,900	$	7,514,982	$	8,540,649		2,459,837		75,288		1,194,853		1,340,272
Small/Mid Cap Equity Fund		10,243,000		—		5,922,524		4,320,476		1,033,996		—		602,274		431,722
International Equity Fund		6,023,291		—		3,854,552		2,168,739		659,362		—		426,700		232,662
S&P 500 Index Fund		42,176,597		2,080,932		21,590,945		22,666,584		4,125,865		197,605		2,068,861		2,254,609
Small Cap Index Fund		10,956,772		1,377,625		7,495,842		4,838,555		883,182		111,188		604,871		389,499
International Index Fund		8,985,980		876,288		6,677,762		3,184,506		914,405		83,139		679,120		318,424
Equity and Bond Fund		13,852,658		666,269		6,987,453		7,531,474		1,629,225		77,664		822,800		884,089
Bond Fund		186,222,659		7,022,979		36,182,029		157,063,609		15,839,120		596,071		3,079,764		13,355,427
Tax Advantaged Bond Fund		266,531,419		7,049,126		37,788,780		235,791,765		22,463,173		592,687		3,184,802		19,871,058
Money Market Fund		194,392,944		—		181,319,980		13,072,964		194,392,944		—		181,319,979		13,072,965
LifePath Retirement Fund		154,676,920		16,884,499		56,234,188		115,327,231		12,660,306		1,384,107		4,606,846		9,437,567
LifePath 2020 Fund		204,786,957		11,991,328		75,988,464		140,789,821		15,029,172		862,042		5,582,369		10,308,845
LifePath 2030 Fund		177,876,842		9,848,368		69,766,937		117,958,273		12,874,123		692,558		5,060,066		8,506,615
LifePath 2040 Fund		108,299,197		6,200,036		44,534,145		69,965,088		7,753,641		428,704		3,189,053		4,993,292
LifePath 2050 Fund		42,090,073		3,175,923		11,278,207		33,987,789		4,460,756		329,870		1,199,960		3,590,666

	Class B Dollar Amounts									Class B Share Amounts
2012	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	374,155	$	6,690	$	211,158	$	169,687			59,409		1,015		33,841		26,583
Small/Mid Cap Equity Fund		362,194		—		304,570		57,624			37,971		—		32,118		5,853
International Equity Fund		151,256		—		94,002		57,254			16,778		—		10,517		6,261
S&P 500 Index Fund		1,053,912		56,976		751,948		358,940			116,403		5,385		72,040		49,748
Small Cap Index Fund		339,311		63,396		371,365		31,342			27,941		5,192		30,500		2,633
International Index Fund		262,101		34,803		278,269		18,635			26,478		3,299		28,286		1,491
Equity and Bond Fund		437,106		15,812		173,726		279,192			51,563		1,831		20,440		32,954
Bond Fund		1,981,449		128,384		725,912		1,383,921			168,994		10,911		61,811		118,094
Tax Advantaged Bond Fund		1,673,608		52,242		182,923		1,542,927			141,120		4,396		15,424		130,092
Money Market Fund		287,978		—		368,770		(80,792	)		287,978		—		368,770		(80,792	)
LifePath Retirement Fund		1,790,095		350,183		1,492,652		647,626			146,190		28,555		121,202		53,543
LifePath 2020 Fund		4,779,283		284,869		2,809,916		2,254,236			354,769		20,614		208,575		166,808
LifePath 2030 Fund		6,205,235		293,238		3,486,666		3,011,807			453,070		20,708		255,118		218,660
LifePath 2040 Fund		6,245,070		304,194		3,647,196		2,902,068			451,442		21,110		264,100		208,452

191

STATE FARM MUTUAL FUND TRUST

NOTES TO FINANCIAL STATEMENTS (continued)

	Legacy Class A Dollar Amounts									Legacy Class A Share Amounts
2012	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	7,485,497	$	724,794	$	8,865,314	$	(655,023	)		1,148,668		105,654		1,361,845		(107,523	)
Small/Mid Cap Equity Fund		5,537,350		—		6,646,562		(1,109,212	)		569,282		—		683,053		(113,771	)
International Equity Fund		2,245,687		—		3,429,309		(1,183,622	)		244,146		—		375,856		(131,710	)
S&P 500 Index Fund		29,901,718		4,363,457		36,237,971		(1,972,796	)		3,127,402		412,406		3,468,382		71,426
Small Cap Index Fund		12,218,102		3,977,668		15,720,489		475,281			996,534		323,907		1,284,166		36,275
International Index Fund		5,931,840		1,398,309		8,869,548		(1,539,399	)		602,950		132,921		900,812		(164,941	)
Equity and Bond Fund		7,422,941		1,195,449		8,345,823		272,567			869,717		138,192		975,604		32,305
Bond Fund		22,266,060		3,667,802		16,682,392		9,251,470			1,895,254		311,385		1,419,594		787,045
Tax Advantaged Bond Fund		15,867,439		1,226,089		5,089,122		12,004,406			1,341,362		103,384		429,556		1,015,190
Money Market Fund		31,559,472		—		36,673,914		(5,114,442	)		31,559,472		—		36,673,914		(5,114,442	)
LifePath Retirement Fund		30,548,822		9,688,195		33,103,389		7,133,628			2,452,361		778,507		2,660,799		570,069
LifePath 2020 Fund		43,806,459		6,450,585		39,402,872		10,854,172			3,233,187		465,416		2,909,214		789,389
LifePath 2030 Fund		33,990,586		4,338,543		28,291,160		10,037,969			2,465,358		304,885		2,050,684		719,559
LifePath 2040 Fund		24,909,040		3,133,575		23,279,951		4,762,664			1,783,839		216,098		1,663,710		336,227

	Legacy Class B Dollar Amounts									Legacy Class B Share Amounts
2012	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	646,468	$	42,107	$	4,126,707	$	(3,438,132	)		99,908		6,156		638,944		(532,880	)
Small/Mid Cap Equity Fund		514,799		—		3,124,313		(2,609,514	)		57,045		—		340,822		(283,777	)
International Equity Fund		107,320		—		1,170,333		(1,063,013	)		11,881		—		128,863		(116,982	)
S&P 500 Index Fund		1,839,297		336,146		21,080,597		(18,905,154	)		217,125		31,593		2,020,088		(1,771,370	)
Small Cap Index Fund		1,136,335		410,308		8,289,486		(6,742,843	)		97,294		34,022		691,961		(560,645	)
International Index Fund		349,968		134,694		3,663,629		(3,178,967	)		35,675		12,743		372,618		(324,200	)
Equity and Bond Fund		780,368		126,671		4,672,485		(3,765,446	)		91,377		14,583		547,691		(441,731	)
Bond Fund		1,365,890		330,986		17,487,506		(15,790,630	)		116,251		28,111		1,481,347		(1,336,985	)
Tax Advantaged Bond Fund		397,698		25,186		10,393,610		(9,970,726	)		33,653		2,124		859,117		(823,340	)
Money Market Fund		2,142,589		—		4,589,297		(2,446,708	)		2,142,589		—		4,589,296		(2,446,707	)
LifePath Retirement Fund		1,525,247		755,376		15,182,274		(12,901,651	)		122,611		60,543		1,218,782		(1,035,628	)
LifePath 2020 Fund		2,396,690		493,800		23,471,190		(20,580,700	)		177,386		35,576		1,739,787		(1,526,825	)
LifePath 2030 Fund		2,441,959		387,166		17,072,455		(14,243,330	)		177,865		27,246		1,244,708		(1,039,597	)
LifePath 2040 Fund		2,214,871		339,148		11,715,751		(9,161,732	)		159,603		23,389		840,078		(657,086	)

192

STATE FARM MUTUAL FUND TRUST

NOTES TO FINANCIAL STATEMENTS (continued)

	Institutional Shares Dollar Amounts								Institutional Shares Share Amounts
2012	Sales		Reinvestments		Redemptions		Net		Sales		Reinvestments		Redemptions		Net
Equity Fund	$	7,173,423	$	374,514	$	4,070,952	$	3,476,985		1,149,415		56,573		637,675		568,313
Small/Mid Cap Equity Fund		4,986,601		—		3,372,471		1,614,130		496,810		—		334,471		162,339
International Equity Fund		2,263,495		—		1,451,615		811,880		249,133		—		158,493		90,640
S&P 500 Index Fund		12,730,856		1,344,661		10,054,199		4,021,318		1,288,075		126,754		949,832		464,997
Small Cap Index Fund		5,432,278		1,728,266		6,261,334		899,210		436,653		138,824		502,447		73,030
International Index Fund		3,521,245		765,197		3,819,127		467,315		356,526		72,529		388,154		40,901
Equity and Bond Fund		4,821,510		349,453		2,779,995		2,390,968		566,817		40,760		327,641		279,936
Bond Fund		49,458,570		2,378,338		17,638,022		34,198,886		4,210,308		202,039		1,498,099		2,914,248
Money Market Fund		59,395,984		464		51,847,918		7,548,530		59,395,984		464		51,847,917		7,548,531
LifePath Retirement Fund		19,935,745		2,911,947		11,856,861		10,990,831		1,598,465		234,083		952,611		879,937
LifePath 2020 Fund		25,114,435		2,689,632		19,059,471		8,744,596		1,844,626		193,083		1,387,331		650,378
LifePath 2030 Fund		26,677,518		2,607,375		15,303,296		13,981,597		1,920,247		182,485		1,100,475		1,002,257
LifePath 2040 Fund		32,192,876		2,949,102		18,277,162		16,864,816		2,290,857		202,581		1,298,327		1,195,111

	Class R-1 Dollar Amounts									Class R-1 Share Amounts
2012	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	1,032,279	$	13,495	$	924,491	$	121,283			161,998		2,045		146,717		17,326
Small/Mid Cap Equity Fund		763,503		—		1,021,828		(258,325	)		79,971		—		106,207		(26,236	)
International Equity Fund		496,752		—		778,080		(281,328	)		54,625		—		85,334		(30,709	)
S&P 500 Index Fund		1,828,365		55,536		2,332,815		(448,914	)		181,725		5,254		222,941		(35,962	)
Small Cap Index Fund		861,497		61,422		761,263		161,656			69,473		4,965		61,823		12,615
International Index Fund		859,442		42,821		983,724		(81,461	)		87,171		4,063		100,616		(9,382	)
Equity and Bond Fund		524,628		21,981		442,662		103,947			62,432		2,590		52,680		12,342
Bond Fund		1,786,105		65,735		1,370,824		481,016			152,243		5,584		117,076		40,751
Money Market Fund		2,581,316		—		2,515,841		65,475			2,581,316		—		2,515,841		65,475
LifePath Retirement Fund		2,318,887		188,872		2,192,597		315,162			189,118		15,438		178,693		25,863
LifePath 2020 Fund		7,074,176		226,720		5,163,090		2,137,806			522,986		16,381		380,435		158,932
LifePath 2030 Fund		7,778,133		237,504		6,405,905		1,609,732			564,519		16,773		463,170		118,122
LifePath 2040 Fund		5,535,519		190,994		4,299,426		1,427,087			397,298		13,263		308,607		101,954
LifePath 2050 Fund		1,374,116		69,003		748,867		694,252			145,473		7,143		79,415		73,201

193

STATE FARM MUTUAL FUND TRUST

NOTES TO FINANCIAL STATEMENTS (continued)

	Class R-2 Dollar Amounts								Class R-2 Share Amounts
2012	Sales		Reinvestments		Redemptions		Net		Sales		Reinvestments		Redemptions		Net
Equity Fund	$	2,836,847	$	81,657	$	1,624,253	$	1,294,251		444,037		12,391		254,806		201,622
Small/Mid Cap Equity Fund		3,287,465		—		1,830,316		1,457,149		338,897		—		185,650		153,247
International Equity Fund		1,715,878		—		1,437,049		278,829		188,449		—		154,854		33,595
S&P 500 Index Fund		5,401,170		187,939		5,096,216		492,893		527,972		17,865		486,375		59,462
Small Cap Index Fund		1,795,728		177,541		1,509,734		463,535		145,203		14,329		121,673		37,859
International Index Fund		2,087,558		117,711		2,067,236		138,033		215,786		11,189		209,586		17,389
Equity and Bond Fund		1,946,870		54,634		1,458,106		543,398		233,330		6,443		171,289		68,484
Bond Fund		3,965,510		171,497		2,342,391		1,794,616		338,583		14,572		199,891		153,264
Money Market Fund		7,808,226		—		6,147,567		1,660,659		7,808,226		—		6,147,567		1,660,659
LifePath Retirement Fund		8,197,673		647,053		7,030,042		1,814,684		655,494		51,867		561,873		145,488
LifePath 2020 Fund		15,980,177		637,111		9,026,501		7,590,787		1,171,575		45,968		659,003		558,540
LifePath 2030 Fund		16,221,955		574,929		5,880,659		10,916,225		1,175,530		40,488		421,815		794,203
LifePath 2040 Fund		10,730,675		434,423		6,482,750		4,682,348		768,542		30,043		458,090		340,495
LifePath 2050 Fund		2,222,905		116,134		728,593		1,610,446		236,208		12,022		78,655		169,575

	Class R-3 Dollar Amounts									Class R-3 Share Amounts
2012	Sales		Reinvestments		Redemptions		Net			Sales		Reinvestments		Redemptions		Net
Equity Fund	$	330,608	$	15,721	$	145,799	$	200,530			52,508		2,375		23,538		31,345
Small/Mid Cap Equity Fund		203,334		—		80,927		122,407			20,138		—		8,176		11,962
International Equity Fund		137,016		—		145,573		(8,557	)		15,190		—		16,299		(1,109	)
S&P 500 Index Fund		406,849		19,391		182,758		243,482			41,727		1,829		17,648		25,908
Small Cap Index Fund		221,573		26,749		99,558		148,764			17,642		2,148		8,180		11,610
International Index Fund		174,574		16,763		68,365		122,972			17,382		1,587		7,097		11,872
Equity and Bond Fund		70,715		7,143		59,405		18,453			8,542		842		7,028		2,356
Bond Fund		461,719		27,871		206,561		283,029			39,358		2,366		17,564		24,160
Money Market Fund		897,589		16		1,181,022		(283,417	)		897,589		16		1,181,022		(283,417	)
LifePath Retirement Fund		578,524		58,114		710,702		(74,064	)		47,279		4,676		57,163		(5,208	)
LifePath 2020 Fund		1,254,504		47,426		1,552,693		(250,763	)		94,599		3,412		115,021		(17,010	)
LifePath 2030 Fund		720,770		55,998		529,814		246,954			52,422		3,919		37,731		18,610
LifePath 2040 Fund		886,484		42,873		670,791		258,566			61,835		2,917		46,631		18,121

194

STATE FARM MUTUAL FUND TRUST

NOTES TO FINANCIAL STATEMENTS (continued)

The following reflects the conversion of Class B, Legacy Class B and Class R-1 shares (reflected as Redemptions) into Class A, Legacy Class A and Class R-2 shares (reflected as Sales), respectively, for the year ended December 31, 2012.

Fund	Class A Dollar Amounts		Class A Share Amounts		Legacy Class A Dollar Amounts		Legacy Class A Share Amounts		Class R-2 Dollar Amounts		Class R-2 Share Amounts
Equity Fund	$	—		—	$	3,027,401		465,362	$	549,001		86,651
Small/Mid Cap Equity Fund		1,469		148		2,039,328		210,518		648,787		66,015
International Equity Fund		610		67		773,058		83,894		436,694		47,072
S&P 500 Index Fund		3,255		311		15,739,042		1,511,950		1,484,300		141,954
Small Cap Index Fund		167		14		6,103,184		498,725		553,964		45,056
International Index Fund		299		30		2,574,531		262,343		684,855		70,566
Equity and Bond Fund		3,288		386		3,260,704		382,815		521,441		61,815
Bond Fund		1,417		121		5,505,077		469,332		1,404,034		120,469
Tax Advantaged Bond Fund		—		—		353,332		29,949		—		—
Money Market Fund		—		—		1,797,015		1,797,015		1,220,087		1,220,087
LifePath Retirement Fund		12,770		1,050		11,650,350		937,560		1,614,651		129,902
LifePath 2020 Fund		3,252		238		17,683,602		1,307,319		3,375,317		247,393
LifePath 2030 Fund		25,437		1,864		12,715,777		921,637		4,873,142		351,144
LifePath 2040 Fund		5,486		391		7,680,585		548,388		2,834,286		202,198
LifePath 2050 Fund		—		—		—		—		619,477		65,493

195

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand the financial performance of each Fund for the past five years. Certain information reflects financial results for a single Fund share. The total returns within each table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

STATE FARM MUTUAL FUND TRUST EQUITY FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations									Less distributions
			Net investment income (loss) (a)(b)			Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income (c)			Net realized gain		Total distributions
Class A Shares
Year ended 12/31/2013	$	6.53	$	0.04		$	2.09		$	2.13		$	(0.04	)	$	—	$	(0.04	)
Year ended 12/31/2012		5.69		0.07			0.84			0.91			(0.07	)		—		(0.07	)
Year ended 12/31/2011		5.78		0.04			(0.09	)		(0.05	)		(0.04	)		—		(0.04	)
Year ended 12/31/2010		5.14		0.02			0.64			0.66			(0.02	)		—		(0.02	)
Year ended 12/31/2009		4.28		0.03			0.86			0.89			(0.03	)		—		(0.03	)
Class B Shares
Year ended 12/31/2013		6.53		(0.02	)		2.08			2.06			—			—		—
Year ended 12/31/2012		5.68		0.02			0.85			0.87			(0.02	)		—		(0.02	)
Year ended 12/31/2011		5.77		—			(0.09	)		(0.09	)		—			—		—
Year ended 12/31/2010		5.15		(0.02	)		0.64			0.62			—			—		—
Year ended 12/31/2009		4.30		—			0.85			0.85			—			—		—
Legacy Class A Shares
Year ended 12/31/2013		6.79		0.04			2.17			2.21			(0.04	)		—		(0.04	)
Year ended 12/31/2012		5.90		0.07			0.88			0.95			(0.06	)		—		(0.06	)
Year ended 12/31/2011		5.99		0.04			(0.09	)		(0.05	)		(0.04	)		—		(0.04	)
Year ended 12/31/2010		5.32		0.02			0.67			0.69			(0.02	)		—		(0.02	)
Year ended 12/31/2009		4.43		0.03			0.89			0.92			(0.03	)		—		(0.03	)
Legacy Class B Shares
Year ended 12/31/2013		6.77		0.01			2.15			2.16			—			—		—
Year ended 12/31/2012		5.88		0.04			0.88			0.92			(0.03	)		—		(0.03	)
Year ended 12/31/2011		5.96		0.02			(0.10	)		(0.08	)		—			—		—
Year ended 12/31/2010		5.30		—			0.66			0.66			—			—		—
Year ended 12/31/2009		4.41		0.01			0.89			0.90			(0.01	)		—		(0.01	)
Institutional Shares
Year ended 12/31/2013		6.56		0.06			2.09			2.15			(0.06	)		—		(0.06	)
Year ended 12/31/2012		5.71		0.08			0.85			0.93			(0.08	)		—		(0.08	)
Year ended 12/31/2011		5.80		0.06			(0.09	)		(0.03	)		(0.06	)		—		(0.06	)
Year ended 12/31/2010		5.15		0.03			0.65			0.68			(0.03	)		—		(0.03	)
Year ended 12/31/2009		4.29		0.04			0.86			0.90			(0.04	)		—		(0.04	)
Class R-1 Shares
Year ended 12/31/2013		6.53		0.01			2.09			2.10			—			—		—
Year ended 12/31/2012		5.69		0.05			0.84			0.89			(0.05	)		—		(0.05	)
Year ended 12/31/2011		5.78		0.02			(0.09	)		(0.07	)		(0.02	)		—		(0.02	)
Year ended 12/31/2010		5.13		—			0.65			0.65			—			—		—
Year ended 12/31/2009		4.28		0.02			0.85			0.87			(0.02	)		—		(0.02	)
Class R-2 Shares
Year ended 12/31/2013		6.52		0.03			2.08			2.11			(0.03	)		—		(0.03	)
Year ended 12/31/2012		5.68		0.06			0.84			0.90			(0.06	)		—		(0.06	)
Year ended 12/31/2011		5.77		0.03			(0.08	)		(0.05	)		(0.04	)		—		(0.04	)
Year ended 12/31/2010		5.13		0.02			0.64			0.66			(0.02	)		—		(0.02	)
Year ended 12/31/2009		4.27		0.03			0.85			0.88			(0.02	)		—		(0.02	)
Class R-3 Shares
Year ended 12/31/2013		6.56		0.05			2.08			2.13			(0.04	)		—		(0.04	)
Year ended 12/31/2012		5.70		0.08			0.86			0.94			(0.08	)		—		(0.08	)
Year ended 12/31/2011		5.79		0.05			(0.09	)		(0.04	)		(0.05	)		—		(0.05	)
Year ended 12/31/2010		5.15		0.03			0.64			0.67			(0.03	)		—		(0.03	)
Year ended 12/31/2009		4.29		0.04			0.86			0.90			(0.04	)		—		(0.04	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net investment income represents less than $0.01 per share for Class B shares in 2011, Legacy Class B and Class R-1 shares in 2010 and Class B shares in 2009.

(c) Net investment income distribution represents less than $0.01 per share for Class B and Legacy Class B shares in 2011.

(d) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(e) Net investment income represents less than 0.005% per share for Class B shares in 2011.

196 See accompanying notes to financial statements.

Net asset value, end  of period		Total return (d)			Ratios/supplemental data
					Net assets, end of  period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions						Portfolio turnover rate
							Expenses			Net investment income (loss) (e)			Expenses			Net investment income (loss) (e)
$	8.62		32.63	%	$	83.3		1.17	%		0.48	%		1.17	%		0.48	%		69	%
	6.53		15.93			52.4		1.18			1.06			1.18			1.06			56
	5.69		(0.79	)		38.0		1.18			0.71			1.18			0.71			43
	5.78		12.89			32.1		1.20			0.40			1.20			0.40			54
	5.14		20.82			20.8		1.20			0.70			1.21			0.69			70
	8.59		31.55			2.8		1.86			(0.21	)		1.86			(0.21	)		69
	6.53		15.35			5.1		1.88			0.34			1.88			0.34			56
	5.68		(1.53	)		4.3		1.88			0.00			1.88			0.00			43
	5.77		12.04			4.2		1.90			(0.30	)		1.90			(0.30	)		54
	5.15		19.77			3.5		1.90			0.02			1.91			0.01			70
	8.96		32.50			102.1		1.17			0.47			1.17			0.47			69
	6.79		16.14			79.1		1.18			1.03			1.18			1.03			56
	5.90		(0.82	)		69.4		1.18			0.70			1.18			0.70			43
	5.99		12.94			69.8		1.20			0.39			1.20			0.39			54
	5.32		20.68			62.8		1.20			0.72			1.22			0.70			70
	8.93		31.91			10.0		1.57			0.07			1.57			0.07			69
	6.77		15.62			9.9		1.58			0.60			1.58			0.60			56
	5.88		(1.29	)		11.7		1.58			0.27			1.58			0.27			43
	5.96		12.45			18.4		1.60			(0.01	)		1.60			(0.01	)		54
	5.30		20.32			21.0		1.60			0.33			1.62			0.31			70
	8.65		32.74			205.4		0.92			0.72			0.92			0.72			69
	6.56		16.28			153.4		0.93			1.29			0.93			1.29			56
	5.71		(0.57	)		130.2		0.93			0.95			0.93			0.95			43
	5.80		13.26			132.2		0.95			0.65			0.95			0.65			54
	5.15		20.93			114.4		0.95			0.97			0.96			0.96			70
	8.63		32.16			2.1		1.48			0.16			1.48			0.16			69
	6.53		15.61			2.7		1.50			0.73			1.50			0.73			56
	5.69		(1.16	)		2.2		1.50			0.38			1.50			0.38			43
	5.78		12.67			2.3		1.52			0.07			1.52			0.07			54
	5.13		20.21			2.7		1.52			0.39			1.53			0.38			70
	8.60		32.35			11.2		1.29			0.36			1.29			0.36			69
	6.52		15.82			9.9		1.30			0.95			1.30			0.95			56
	5.68		(0.94	)		7.5		1.30			0.57			1.30			0.57			43
	5.77		12.79			7.0		1.32			0.29			1.32			0.29			54
	5.13		20.68			4.4		1.32			0.60			1.33			0.59			70
	8.65		32.55			2.2		0.98			0.65			0.98			0.65			69
	6.56		16.42			2.3		1.00			1.22			1.00			1.22			56
	5.70		(0.66	)		1.8		1.00			0.87			1.00			0.87			43
	5.79		13.00			1.9		1.02			0.58			1.02			0.58			54
	5.15		20.91			1.1		1.02			0.91			1.03			0.90			70

See accompanying notes to financial statements. 197

STATE FARM MUTUAL FUND TRUST SMALL/MID CAP EQUITY FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations									Less distributions
			Net investment income (loss) (a) (b)			Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income			Net realized gain			Total distributions
Class A Shares
Year ended 12/31/2013	$	10.49	$	(0.05	)	$	3.62		$	3.57		$	(0.03	)	$	(1.32	)	$	(1.35	)
Year ended 12/31/2012		8.99		0.05			1.45			1.50			—			—			—
Year ended 12/31/2011		9.24		(0.02	)		(0.23	)		(0.25	)		—			—			—
Year ended 12/31/2010		7.55		(0.02	)		1.71			1.69			—			—			—
Year ended 12/31/2009		5.84		(0.01	)		1.72			1.71			—			—			—
Class B Shares
Year ended 12/31/2013		10.02		(0.11	)		3.45			3.34			—			(1.32	)		(1.32	)
Year ended 12/31/2012		8.65		(0.02	)		1.39			1.37			—			—			—
Year ended 12/31/2011		8.95		(0.08	)		(0.22	)		(0.30	)		—			—			—
Year ended 12/31/2010		7.35		(0.06	)		1.66			1.60			—			—			—
Year ended 12/31/2009		5.73		(0.04	)		1.66			1.62			—			—			—
Legacy Class A Shares
Year ended 12/31/2013		10.31		(0.05	)		3.55			3.50			(0.03	)		(1.32	)		(1.35	)
Year ended 12/31/2012		8.83		0.05			1.43			1.48			—			—			—
Year ended 12/31/2011		9.07		(0.02	)		(0.22	)		(0.24	)		—			—			—
Year ended 12/31/2010		7.41		(0.02	)		1.68			1.66			—			—			—
Year ended 12/31/2009		5.74		(0.01	)		1.68			1.67			—			—			—
Legacy Class B Shares
Year ended 12/31/2013		9.75		(0.09	)		3.35			3.26			—			(1.32	)		(1.32	)
Year ended 12/31/2012		8.39		0.01			1.35			1.36			—			—			—
Year ended 12/31/2011		8.65		(0.06	)		(0.20	)		(0.26	)		—			—			—
Year ended 12/31/2010		7.10		(0.05	)		1.60			1.55			—			—			—
Year ended 12/31/2009		5.52		(0.03	)		1.61			1.58			—			—			—
Institutional Shares
Year ended 12/31/2013		10.68		(0.02	)		3.68			3.66			(0.06	)		(1.32	)		(1.38	)
Year ended 12/31/2012		9.13		0.08			1.47			1.55			—			—			—
Year ended 12/31/2011		9.35		—			(0.22	)		(0.22	)		—			—			—
Year ended 12/31/2010		7.62		—			1.73			1.73			—			—			—
Year ended 12/31/2009		5.89		0.01			1.72			1.73			—			—			—
Class R-1 Shares
Year ended 12/31/2013		10.11		(0.09	)		3.48			3.39			—			(1.32	)		(1.32	)
Year ended 12/31/2012		8.69		0.02			1.40			1.42			—			—			—
Year ended 12/31/2011		8.96		(0.05	)		(0.22	)		(0.27	)		—			—			—
Year ended 12/31/2010		7.34		(0.04	)		1.66			1.62			—			—			—
Year ended 12/31/2009		5.70		(0.03	)		1.67			1.64			—			—			—
Class R-2 Shares
Year ended 12/31/2013		10.29		(0.06	)		3.54			3.48			(0.02	)		(1.32	)		(1.34	)
Year ended 12/31/2012		8.83		0.04			1.42			1.46			—			—			—
Year ended 12/31/2011		9.08		(0.03	)		(0.22	)		(0.25	)		—			—			—
Year ended 12/31/2010		7.43		(0.02	)		1.67			1.65			—			—			—
Year ended 12/31/2009		5.76		(0.01	)		1.68			1.67			—			—			—
Class R-3 Shares
Year ended 12/31/2013		10.59		(0.03	)		3.65			3.62			(0.05	)		(1.32	)		(1.37	)
Year ended 12/31/2012		9.06		0.07			1.46			1.53			—			—			—
Year ended 12/31/2011		9.29		(0.01	)		(0.22	)		(0.23	)		—			—			—
Year ended 12/31/2010		7.57		—			1.72			1.72			—			—			—
Year ended 12/31/2009		5.86		—			1.71			1.71			—			—			—

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net investment income represents less than $0.01 per share for Institutional shares in 2011, Institutional and Class R-3 shares in 2010 and Class R-3 shares in 2009.

(c) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(d) The expense ratios include the effect of the expense reduction changes for Class B shares described in Note 7 under Expense Reduction Agreements.

198 See accompanying notes to financial statements.

Net asset value, end  of period		Total return (c)			Ratios/supplemental data
					Net assets, end of  period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions						Portfolio turnover rate
							Expenses (d)			Net investment income (loss)			Expenses			Net investment income (loss)
$	12.71		34.04	%	$	80.2		1.40	%		(0.41	)%		1.40	%		(0.41	)%		116	%
	10.49		16.69			50.4		1.40			0.55			1.42			0.53			91
	8.99		(2.71	)		39.3		1.40			(0.23	)		1.43			(0.26	)		86
	9.24		22.38			36.0		1.40			(0.19	)		1.47			(0.26	)		107
	7.55		29.28			25.1		1.40			(0.12	)		1.49			(0.21	)		130
	12.04		33.33			13.6		1.90			(0.91	)		1.90			(0.91	)		116
	10.02		15.84			10.9		2.10			(0.18	)		2.12			(0.20	)		91
	8.65		(3.35	)		9.4		2.10			(0.94	)		2.13			(0.97	)		86
	8.95		21.77			9.4		2.00			(0.80	)		2.07			(0.87	)		107
	7.35		28.27			7.6		2.00			(0.72	)		2.10			(0.82	)		130
	12.46		33.92			98.1		1.40			(0.42	)		1.40			(0.42	)		116
	10.31		16.76			75.7		1.40			0.52			1.42			0.50			91
	8.83		(2.65	)		65.9		1.40			(0.24	)		1.43			(0.27	)		86
	9.07		22.40			67.2		1.40			(0.20	)		1.47			(0.27	)		107
	7.41		29.09			55.5		1.40			(0.12	)		1.50			(0.22	)		130
	11.69		33.42			14.2		1.80			(0.82	)		1.80			(0.82	)		116
	9.75		16.21			12.8		1.80			0.07			1.82			0.05			91
	8.39		(3.01	)		13.4		1.80			(0.66	)		1.83			(0.69	)		86
	8.65		21.83			17.8		1.80			(0.62	)		1.87			(0.69	)		107
	7.10		28.62			17.2		1.80			(0.52	)		1.90			(0.62	)		130
	12.96		34.25			45.1		1.15			(0.16	)		1.15			(0.16	)		116
	10.68		16.98			32.4		1.15			0.79			1.17			0.77			91
	9.13		(2.35	)		26.2		1.15			0.01			1.18			(0.02	)		86
	9.35		22.70			25.9		1.15			0.05			1.22			(0.02	)		107
	7.62		29.37			20.2		1.15			0.13			1.25			0.03			130
	12.18		33.53			3.7		1.72			(0.74	)		1.72			(0.74	)		116
	10.11		16.34			3.2		1.72			0.17			1.74			0.15			91
	8.69		(3.01	)		3.0		1.72			(0.56	)		1.75			(0.59	)		86
	8.96		22.07			3.3		1.72			(0.53	)		1.79			(0.60	)		107
	7.34		28.77			3.1		1.72			(0.44	)		1.81			(0.53	)		130
	12.43		33.78			10.5		1.52			(0.52	)		1.52			(0.52	)		116
	10.29		16.53			9.1		1.52			0.45			1.54			0.43			91
	8.83		(2.75	)		6.4		1.52			(0.38	)		1.55			(0.41	)		86
	9.08		22.21			7.1		1.52			(0.30	)		1.59			(0.37	)		107
	7.43		28.99			4.4		1.52			(0.24	)		1.62			(0.34	)		130
	12.84		34.19			2.8		1.22			(0.23	)		1.22			(0.23	)		116
	10.59		16.89			2.1		1.22			0.72			1.24			0.70			91
	9.06		(2.48	)		1.6		1.22			(0.07	)		1.25			(0.10	)		86
	9.29		22.72			1.9		1.22			(0.02	)		1.29			(0.09	)		107
	7.57		29.18			1.2		1.22			0.07			1.32			(0.03	)		130

See accompanying notes to financial statements. 199

STATE FARM MUTUAL FUND TRUST INTERNATIONAL EQUITY FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations								Less distributions
			Net investment income (loss) (a)(b)		Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income (c)			Net realized gain		Total distributions
Class A Shares
Year ended 12/31/2013	$	9.82	$	0.06	$	1.66		$	1.72		$	(0.12	)	$	—	$	(0.12	)
Year ended 12/31/2012		8.28		0.09		1.45			1.54			—			—		—
Year ended 12/31/2011		9.77		0.07		(1.43	)		(1.36	)		(0.13	)		—		(0.13	)
Year ended 12/31/2010		8.87		0.05		0.99			1.04			(0.14	)		—		(0.14	)
Year ended 12/31/2009		6.57		0.05		2.30			2.35			(0.05	)		—		(0.05	)
Class B Shares
Year ended 12/31/2013		9.69		0.02		1.64			1.66			(0.08	)		—		(0.08	)
Year ended 12/31/2012		8.23		0.03		1.43			1.46			—			—		—
Year ended 12/31/2011		9.70		0.01		(1.41	)		(1.40	)		(0.07	)		—		(0.07	)
Year ended 12/31/2010		8.81		—		0.98			0.98			(0.09	)		—		(0.09	)
Year ended 12/31/2009		6.53		0.01		2.27			2.28			—			—		—
Legacy Class A Shares
Year ended 12/31/2013		9.91		0.06		1.68			1.74			(0.12	)		—		(0.12	)
Year ended 12/31/2012		8.35		0.09		1.47			1.56			—			—		—
Year ended 12/31/2011		9.85		0.07		(1.44	)		(1.37	)		(0.13	)		—		(0.13	)
Year ended 12/31/2010		8.94		0.05		1.00			1.05			(0.14	)		—		(0.14	)
Year ended 12/31/2009		6.61		0.05		2.32			2.37			(0.04	)		—		(0.04	)
Legacy Class B Shares
Year ended 12/31/2013		9.79		0.02		1.64			1.66			(0.07	)		—		(0.07	)
Year ended 12/31/2012		8.29		0.05		1.45			1.50			—			—		—
Year ended 12/31/2011		9.76		0.04		(1.42	)		(1.38	)		(0.09	)		—		(0.09	)
Year ended 12/31/2010		8.86		0.02		0.98			1.00			(0.10	)		—		(0.10	)
Year ended 12/31/2009		6.56		0.02		2.29			2.31			(0.01	)		—		(0.01	)
Institutional Shares
Year ended 12/31/2013		9.91		0.09		1.67			1.76			(0.14	)		—		(0.14	)
Year ended 12/31/2012		8.33		0.11		1.47			1.58			—			—		—
Year ended 12/31/2011		9.83		0.10		(1.44	)		(1.34	)		(0.16	)		—		(0.16	)
Year ended 12/31/2010		8.92		0.07		1.00			1.07			(0.16	)		—		(0.16	)
Year ended 12/31/2009		6.59		0.07		2.32			2.39			(0.06	)		—		(0.06	)
Class R-1 Shares
Year ended 12/31/2013		9.77		0.03		1.64			1.67			(0.08	)		—		(0.08	)
Year ended 12/31/2012		8.26		0.06		1.45			1.51			—			—		—
Year ended 12/31/2011		9.74		0.04		(1.42	)		(1.38	)		(0.10	)		—		(0.10	)
Year ended 12/31/2010		8.84		0.02		0.99			1.01			(0.11	)		—		(0.11	)
Year ended 12/31/2009		6.55		0.03		2.28			2.31			(0.02	)		—		(0.02	)
Class R-2 Shares
Year ended 12/31/2013		9.81		0.04		1.67			1.71			(0.11	)		—		(0.11	)
Year ended 12/31/2012		8.29		0.08		1.44			1.52			—			—		—
Year ended 12/31/2011		9.77		0.06		(1.42	)		(1.36	)		(0.12	)		—		(0.12	)
Year ended 12/31/2010		8.87		0.04		0.99			1.03			(0.13	)		—		(0.13	)
Year ended 12/31/2009		6.57		0.04		2.30			2.34			(0.04	)		—		(0.04	)
Class R-3 Shares
Year ended 12/31/2013		9.90		0.08		1.68			1.76			(0.14	)		—		(0.14	)
Year ended 12/31/2012		8.33		0.11		1.46			1.57			—			—		—
Year ended 12/31/2011		9.83		0.09		(1.44	)		(1.35	)		(0.15	)		—		(0.15	)
Year ended 12/31/2010		8.91		0.07		1.00			1.07			(0.15	)		—		(0.15	)
Year ended 12/31/2009		6.59		0.07		2.31			2.38			(0.06	)		—		(0.06	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net investment income represents less than $0.01 per share for Class B shares in 2010.

(c) Net investment income distribution represents less than $0.01 per share for Class B shares in 2009.

(d) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(e) The expense ratios include the effect of the expense reduction change for Class B shares described in Note 7 under Expense Reduction Agreements.

200 See accompanying notes to financial statements.

Net asset value, end  of period		Total return (d)			Ratios/supplemental data
					Net assets, end of  period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions						Portfolio turnover rate
							Expenses (e)			Net investment income (loss)			Expenses			Net investment income (loss)
$	11.42		17.53	%	$	41.0		1.50	%		0.56	%		1.53	%		0.53	%		77	%
	9.82		18.60			30.0		1.50			0.99			1.55			0.94			47
	8.28		(13.89	)		23.3		1.50			0.77			1.63			0.64			57
	9.77		11.75			24.9		1.50			0.55			1.68			0.37			66
	8.87		35.73			18.2		1.50			0.66			1.72			0.44			62
	11.27		17.16			10.8		1.85			0.24			1.88			0.21			77
	9.69		17.74			9.2		2.20			0.30			2.25			0.25			47
	8.23		(14.45	)		7.8		2.20			0.07			2.33			(0.06	)		57
	9.70		11.09			9.1		2.10			(0.04	)		2.27			(0.21	)		66
	8.81		34.92			8.2		2.10			0.12			2.34			(0.12	)		62
	11.53		17.53			51.2		1.50			0.59			1.53			0.56			77
	9.91		18.68			44.5		1.50			1.00			1.55			0.95			47
	8.35		(13.89	)		38.6		1.50			0.77			1.63			0.64			57
	9.85		11.72			45.5		1.50			0.57			1.67			0.40			66
	8.94		35.90			41.8		1.50			0.71			1.73			0.48			62
	11.38		16.99			11.5		1.90			0.20			1.93			0.17			77
	9.79		18.09			10.7		1.90			0.61			1.95			0.56			47
	8.29		(14.14	)		10.1		1.90			0.38			2.03			0.25			57
	9.76		11.27			13.3		1.90			0.18			2.07			0.01			66
	8.86		35.26			13.5		1.90			0.33			2.13			0.10			62
	11.53		17.81			20.3		1.25			0.83			1.28			0.80			77
	9.91		18.97			17.1		1.25			1.25			1.30			1.20			47
	8.33		(13.68	)		13.6		1.25			1.03			1.38			0.90			57
	9.83		12.01			15.3		1.25			0.82			1.43			0.64			66
	8.92		36.31			12.8		1.25			0.93			1.48			0.70			62
	11.36		17.14			2.9		1.82			0.27			1.85			0.24			77
	9.77		18.28			2.5		1.82			0.69			1.87			0.64			47
	8.26		(14.16	)		2.4		1.82			0.48			1.95			0.35			57
	9.74		11.40			2.9		1.82			0.24			1.99			0.07			66
	8.84		35.31			3.2		1.82			0.37			2.05			0.14			62
	11.41		17.40			5.8		1.62			0.40			1.65			0.37			77
	9.81		18.34			5.9		1.62			0.87			1.67			0.82			47
	8.29		(13.94	)		4.7		1.62			0.66			1.75			0.53			57
	9.77		11.63			5.8		1.62			0.43			1.80			0.25			66
	8.87		35.59			3.8		1.62			0.52			1.85			0.29			62
	11.52		17.74			2.2		1.32			0.76			1.35			0.73			77
	9.90		18.85			1.9		1.32			1.20			1.37			1.15			47
	8.33		(13.75	)		1.6		1.32			0.95			1.45			0.82			57
	9.83		12.06			1.9		1.32			0.75			1.49			0.58			66
	8.91		36.08			1.4		1.32			0.89			1.55			0.66			62

See accompanying notes to financial statements. 201

STATE FARM MUTUAL FUND TRUST S&P 500 INDEX FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations							Less distributions
			Net investment income (loss) (a)(b)		Net gain (loss) on investments (both realized and unrealized) (c)			Total from investment operations		Net investment income			Net realized gain		Total distributions
Class A Shares
Year ended 12/31/2013	$	10.72	$	0.16	$	3.20		$	3.36	$	(0.17	)	$	—	$	(0.17	)
Year ended 12/31/2012		9.45		0.16		1.27			1.43		(0.16	)		—		(0.16	)
Year ended 12/31/2011		9.45		0.13		—			0.13		(0.13	)		—		(0.13	)
Year ended 12/31/2010		8.37		0.11		1.08			1.19		(0.11	)		—		(0.11	)
Year ended 12/31/2009		6.74		0.12		1.62			1.74		(0.11	)		—		(0.11	)
Class B Shares
Year ended 12/31/2013		10.76		0.07		3.20			3.27		(0.05	)		—		(0.05	)
Year ended 12/31/2012		9.48		0.09		1.27			1.36		(0.08	)		—		(0.08	)
Year ended 12/31/2011		9.48		0.06		—			0.06		(0.06	)		—		(0.06	)
Year ended 12/31/2010		8.40		0.05		1.08			1.13		(0.05	)		—		(0.05	)
Year ended 12/31/2009		6.77		0.07		1.61			1.68		(0.05	)		—		(0.05	)
Legacy Class A Shares
Year ended 12/31/2013		10.76		0.16		3.22			3.38		(0.16	)		—		(0.16	)
Year ended 12/31/2012		9.48		0.16		1.27			1.43		(0.15	)		—		(0.15	)
Year ended 12/31/2011		9.48		0.13		—			0.13		(0.13	)		—		(0.13	)
Year ended 12/31/2010		8.40		0.11		1.08			1.19		(0.11	)		—		(0.11	)
Year ended 12/31/2009		6.76		0.12		1.62			1.74		(0.10	)		—		(0.10	)
Legacy Class B Shares
Year ended 12/31/2013		10.82		0.11		3.24			3.35		(0.09	)		—		(0.09	)
Year ended 12/31/2012		9.52		0.11		1.28			1.39		(0.09	)		—		(0.09	)
Year ended 12/31/2011		9.51		0.09		(0.01	)		0.08		(0.07	)		—		(0.07	)
Year ended 12/31/2010		8.41		0.08		1.08			1.16		(0.06	)		—		(0.06	)
Year ended 12/31/2009		6.77		0.09		1.62			1.71		(0.07	)		—		(0.07	)
Institutional Shares
Year ended 12/31/2013		10.79		0.20		3.22			3.42		(0.19	)		—		(0.19	)
Year ended 12/31/2012		9.51		0.19		1.27			1.46		(0.18	)		—		(0.18	)
Year ended 12/31/2011		9.51		0.15		—			0.15		(0.15	)		—		(0.15	)
Year ended 12/31/2010		8.41		0.13		1.10			1.23		(0.13	)		—		(0.13	)
Year ended 12/31/2009		6.76		0.13		1.64			1.77		(0.12	)		—		(0.12	)
Class R-1 Shares
Year ended 12/31/2013		10.75		0.12		3.21			3.33		(0.11	)		—		(0.11	)
Year ended 12/31/2012		9.47		0.13		1.27			1.40		(0.12	)		—		(0.12	)
Year ended 12/31/2011		9.48		0.10		(0.01	)		0.09		(0.10	)		—		(0.10	)
Year ended 12/31/2010		8.39		0.08		1.09			1.17		(0.08	)		—		(0.08	)
Year ended 12/31/2009		6.75		0.09		1.63			1.72		(0.08	)		—		(0.08	)
Class R-2 Shares
Year ended 12/31/2013		10.70		0.15		3.19			3.34		(0.15	)		—		(0.15	)
Year ended 12/31/2012		9.43		0.15		1.26			1.41		(0.14	)		—		(0.14	)
Year ended 12/31/2011		9.44		0.12		—			0.12		(0.13	)		—		(0.13	)
Year ended 12/31/2010		8.36		0.10		1.08			1.18		(0.10	)		—		(0.10	)
Year ended 12/31/2009		6.73		0.11		1.62			1.73		(0.10	)		—		(0.10	)
Class R-3 Shares
Year ended 12/31/2013		10.78		0.19		3.22			3.41		(0.19	)		—		(0.19	)
Year ended 12/31/2012		9.50		0.18		1.27			1.45		(0.17	)		—		(0.17	)
Year ended 12/31/2011		9.50		0.15		—			0.15		(0.15	)		—		(0.15	)
Year ended 12/31/2010		8.42		0.13		1.08			1.21		(0.13	)		—		(0.13	)
Year ended 12/31/2009		6.77		0.13		1.63			1.76		(0.11	)		—		(0.11	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net amounts and ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio through May 11, 2012.

(c) Net gain (loss) on investments represents less than $0.01 per share for Class A, Class B, Legacy Class A, Institutional, Class R-2 and Class R-3 shares in 2011.

(d) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(e) The expense ratios include the effect of the expense reduction change described in Note 7 under Expense Reduction Agreements.

(f) The 2012 portfolio turnover rate reflects the period from May 12, 2012 to December 31, 2012 and excludes in-kind contribution of portfolio securities received on May 12, 2012. Prior to May 12, 2012, the S&P 500 Index Fund invested all of its assets in its corresponding Master Portfolio. The portfolio turnover rate of the Master Portfolio for the period January 1, 2012 through May 11, 2012 was 5%.

202 See accompanying notes to financial statements.

Net asset value, end  of period		Total return (d)			Ratios/supplemental data
					Net assets, end of  period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions						Portfolio turnover rate (f)
							Expenses (b) (e)			Net investment income (loss) (b)			Expenses (b)			Net investment income (loss)  (b)
$	13.91		31.46	%	$	273.3		0.75	%		1.30	%		0.75	%		1.30	%		3	%
	10.72		15.02			154.6		0.76			1.54			0.76			1.54			2
	9.45		1.39			115.0		0.80			1.34			0.81			1.33			5
	9.45		14.27			98.5		0.79			1.29			0.79			1.29			9
	8.37		25.76			68.7		0.79			1.60			0.80			1.59			5
	13.98		30.41			13.0		1.44			0.59			1.44			0.59			3
	10.76		14.37			18.5		1.47			0.83			1.47			0.83			2
	9.48		0.67			15.8		1.50			0.64			1.51			0.63			5
	9.48		13.43			15.3		1.49			0.59			1.49			0.59			9
	8.40		24.87			12.9		1.50			0.92			1.50			0.92			5
	13.98		31.42			406.0		0.75			1.30			0.75			1.30			3
	10.76		15.13			315.1		0.77			1.53			0.77			1.53			2
	9.48		1.35			277.0		0.80			1.33			0.81			1.32			5
	9.48		14.17			275.7		0.79			1.28			0.79			1.28			9
	8.40		25.74			247.7		0.80			1.63			0.80			1.63			5
	14.08		30.97			37.0		1.14			0.91			1.14			0.91			3
	10.82		14.63			40.2		1.17			1.10			1.17			1.10			2
	9.52		0.87			52.2		1.20			0.91			1.21			0.90			5
	9.51		13.84			77.0		1.19			0.88			1.19			0.88			9
	8.41		25.25			82.9		1.20			1.23			1.20			1.23			5
	14.02		31.73			117.4		0.50			1.55			0.50			1.55			3
	10.79		15.37			82.5		0.52			1.78			0.52			1.78			2
	9.51		1.61			68.3		0.55			1.58			0.56			1.57			5
	9.51		14.66			67.0		0.54			1.53			0.54			1.53			9
	8.41		26.15			57.2		0.55			1.86			0.55			1.86			5
	13.97		31.01			8.1		1.07			0.99			1.07			0.99			3
	10.75		14.77			6.5		1.09			1.20			1.09			1.20			2
	9.47		0.98			6.0		1.12			1.02			1.13			1.01			5
	9.48		13.89			5.9		1.11			0.96			1.11			0.96			9
	8.39		25.47			6.6		1.12			1.29			1.12			1.29			5
	13.89		31.22			19.4		0.86			1.19			0.86			1.19			3
	10.70		14.98			15.7		0.89			1.42			0.89			1.42			2
	9.43		1.21			13.3		0.92			1.21			0.93			1.20			5
	9.44		14.14			12.6		0.91			1.17			0.91			1.17			9
	8.36		25.66			9.2		0.92			1.50			0.92			1.50			5
	14.00		31.61			3.5		0.57			1.49			0.57			1.49			3
	10.78		15.32			2.5		0.59			1.72			0.59			1.72			2
	9.50		1.60			1.9		0.62			1.51			0.63			1.50			5
	9.50		14.35			2.0		0.61			1.47			0.61			1.47			9
	8.42		26.03			1.6		0.62			1.81			0.62			1.81			5

See accompanying notes to financial statements. 203

STATE FARM MUTUAL FUND TRUST SMALL CAP INDEX FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations									Less distributions
			Net investment income (loss) (a)(b)			Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income			Net realized gain (c)			Total distributions
Class A Shares
Year ended 12/31/2013	$	12.65	$	0.03		$	4.72		$	4.75		$	(0.06	)	$	(0.80	)	$	(0.86	)
Year ended 12/31/2012		11.35		0.13			1.59			1.72			(0.11	)		(0.31	)		(0.42	)
Year ended 12/31/2011		12.09		0.03			(0.63	)		(0.60	)		(0.03	)		(0.11	)		(0.14	)
Year ended 12/31/2010		9.65		0.04			2.44			2.48			(0.04	)		—			(0.04	)
Year ended 12/31/2009		7.68		0.04			1.97			2.01			(0.04	)		—			(0.04	)
Class B Shares
Year ended 12/31/2013		12.46		(0.05	)		4.64			4.59			—			(0.80	)		(0.80	)
Year ended 12/31/2012		11.18		0.04			1.57			1.61			(0.02	)		(0.31	)		(0.33	)
Year ended 12/31/2011		11.98		(0.05	)		(0.64	)		(0.69	)		—			(0.11	)		(0.11	)
Year ended 12/31/2010		9.60		(0.03	)		2.41			2.38			—			—			—
Year ended 12/31/2009		7.66		(0.02	)		1.96			1.94			—			—			—
Legacy Class A Shares
Year ended 12/31/2013		12.53		0.03			4.68			4.71			(0.05	)		(0.80	)		(0.85	)
Year ended 12/31/2012		11.24		0.13			1.57			1.70			(0.10	)		(0.31	)		(0.41	)
Year ended 12/31/2011		11.98		0.03			(0.64	)		(0.61	)		(0.02	)		(0.11	)		(0.13	)
Year ended 12/31/2010		9.56		0.04			2.41			2.45			(0.03	)		—			(0.03	)
Year ended 12/31/2009		7.61		0.04			1.95			1.99			(0.04	)		—			(0.04	)
Legacy Class B Shares
Year ended 12/31/2013		12.31		(0.03	)		4.60			4.57			—			(0.80	)		(0.80	)
Year ended 12/31/2012		11.05		0.07			1.55			1.62			(0.05	)		(0.31	)		(0.36	)
Year ended 12/31/2011		11.80		(0.02	)		(0.62	)		(0.64	)		—			(0.11	)		(0.11	)
Year ended 12/31/2010		9.42		—			2.38			2.38			—			—			—
Year ended 12/31/2009		7.51		0.01			1.91			1.92			(0.01	)		—			(0.01	)
Institutional Shares
Year ended 12/31/2013		12.71		0.07			4.75			4.82			(0.09	)		(0.80	)		(0.89	)
Year ended 12/31/2012		11.39		0.16			1.60			1.76			(0.13	)		(0.31	)		(0.44	)
Year ended 12/31/2011		12.14		0.06			(0.65	)		(0.59	)		(0.05	)		(0.11	)		(0.16	)
Year ended 12/31/2010		9.68		0.07			2.45			2.52			(0.06	)		—			(0.06	)
Year ended 12/31/2009		7.70		0.06			1.98			2.04			(0.06	)		—			(0.06	)
Class R-1 Shares
Year ended 12/31/2013		12.63		(0.01	)		4.70			4.69			(0.01	)		(0.80	)		(0.81	)
Year ended 12/31/2012		11.32		0.09			1.59			1.68			(0.06	)		(0.31	)		(0.37	)
Year ended 12/31/2011		12.08		(0.01	)		(0.64	)		(0.65	)		—			(0.11	)		(0.11	)
Year ended 12/31/2010		9.64		—			2.44			2.44			—			—			—
Year ended 12/31/2009		7.67		0.01			1.97			1.98			(0.01	)		—			(0.01	)
Class R-2 Shares
Year ended 12/31/2013		12.64		0.01			4.72			4.73			(0.04	)		(0.80	)		(0.84	)
Year ended 12/31/2012		11.34		0.11			1.59			1.70			(0.09	)		(0.31	)		(0.40	)
Year ended 12/31/2011		12.08		0.02			(0.64	)		(0.62	)		(0.01	)		(0.11	)		(0.12	)
Year ended 12/31/2010		9.64		0.03			2.43			2.46			(0.02	)		—			(0.02	)
Year ended 12/31/2009		7.68		0.03			1.97			2.00			(0.04	)		—			(0.04	)
Class R-3 Shares
Year ended 12/31/2013		12.71		0.06			4.75			4.81			(0.08	)		(0.80	)		(0.88	)
Year ended 12/31/2012		11.40		0.15			1.60			1.75			(0.13	)		(0.31	)		(0.44	)
Year ended 12/31/2011		12.15		0.05			(0.65	)		(0.60	)		(0.04	)		(0.11	)		(0.15	)
Year ended 12/31/2010		9.69		0.06			2.45			2.51			(0.05	)		—			(0.05	)
Year ended 12/31/2009		7.71		0.05			1.98			2.03			(0.05	)		—			(0.05	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net investment income represents less than $0.01 per share for Legacy Class B and Class R-1 shares in 2010.

(c) Net realized gain distributions represent less than $0.01 per share in 2009.

(d) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(e) The expense ratios include the effect of the expense reduction changes described in Note 7 under Expense Reduction Agreements.

204 See accompanying notes to financial statements.

Net asset value, end  of period		Total return (d)			Ratios/supplemental data
					Net assets, end of period (millions)		Average Net Asset ratios assuming  expense reductions						Average Net Asset ratios absent  expense reductions
							Expenses (e)			Net investment income (loss)			Expenses			Net investment income (loss)			Portfolio turnover rate
$	16.54		37.57	%	$	87.0		0.94	%		0.23	%		0.96	%		0.21	%		14	%
	12.65		15.22			51.5		0.95			1.05			0.98			1.02			14
	11.35		(4.97	)		41.8		0.95			0.28			0.98			0.25			14
	12.09		25.66			39.6		0.95			0.41			1.01			0.35			15
	9.65		26.21			26.3		0.95			0.50			1.03			0.42			20
	16.25		36.84			14.4		1.49			(0.33	)		1.51			(0.35	)		14
	12.46		14.48			10.7		1.65			0.33			1.68			0.30			14
	11.18		(5.73	)		9.6		1.65			(0.43	)		1.68			(0.46	)		14
	11.98		24.79			10.1		1.65			(0.31	)		1.71			(0.37	)		15
	9.60		25.33			7.9		1.65			(0.21	)		1.73			(0.29	)		20
	16.39		37.63			200.6		0.94			0.21			0.96			0.19			14
	12.53		15.26			150.6		0.95			1.02			0.98			0.99			14
	11.24		(5.04	)		134.7		0.95			0.27			0.98			0.24			14
	11.98		25.65			143.8		0.95			0.39			1.01			0.33			15
	9.56		26.13			118.3		0.95			0.49			1.03			0.41			20
	16.08		37.14			32.9		1.34			(0.19	)		1.36			(0.21	)		14
	12.31		14.72			29.3		1.35			0.58			1.38			0.55			14
	11.05		(5.39	)		32.5		1.35			(0.15	)		1.38			(0.18	)		14
	11.80		25.27			44.1		1.35			(0.03	)		1.41			(0.09	)		15
	9.42		25.54			41.1		1.35			0.09			1.43			0.01			20
	16.64		37.96			78.7		0.69			0.47			0.71			0.45			14
	12.71		15.60			54.1		0.70			1.27			0.73			1.24			14
	11.39		(4.81	)		47.6		0.70			0.51			0.73			0.48			14
	12.14		26.01			50.3		0.70			0.64			0.76			0.58			15
	9.68		26.47			38.9		0.70			0.74			0.78			0.66			20
	16.51		37.25			4.2		1.26			(0.10	)		1.28			(0.12	)		14
	12.63		14.88			3.2		1.27			0.71			1.30			0.68			14
	11.32		(5.35	)		2.7		1.27			(0.06	)		1.30			(0.09	)		14
	12.08		25.31			3.0		1.27			0.04			1.33			(0.02	)		15
	9.64		25.86			3.0		1.27			0.17			1.35			0.09			20
	16.53		37.44			8.9		1.06			0.10			1.08			0.08			14
	12.64		15.09			6.8		1.07			0.93			1.10			0.90			14
	11.34		(5.13	)		5.6		1.07			0.13			1.10			0.10			14
	12.08		25.57			5.9		1.07			0.29			1.13			0.23			15
	9.64		26.00			3.7		1.07			0.38			1.15			0.30			20
	16.64		37.86			2.5		0.76			0.40			0.78			0.38			14
	12.71		15.44			1.9		0.77			1.24			0.80			1.21			14
	11.40		(4.88	)		1.5		0.77			0.44			0.80			0.41			14
	12.15		25.92			1.7		0.77			0.58			0.83			0.52			15
	9.69		26.38			1.2		0.77			0.68			0.85			0.60			20

See accompanying notes to financial statements. 205

STATE FARM MUTUAL FUND TRUST INTERNATIONAL INDEX FUND

(For a share outstanding throughout each period)

			Income from investment operations								Less distributions
	Net asset value, beginning of period		Net investment income (loss) (a)		Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income			Net realized gain		Total distributions
Class A Shares
Year ended 12/31/2013	$	10.55	$	0.21	$	1.95		$	2.16		$	(0.22	)	$	—	$	(0.22	)
Year ended 12/31/2012		9.19		0.22		1.38			1.60			(0.24	)		—		(0.24	)
Year ended 12/31/2011		10.84		0.22		(1.62	)		(1.40	)		(0.25	)		—		(0.25	)
Year ended 12/31/2010		10.33		0.16		0.52			0.68			(0.17	)		—		(0.17	)
Year ended 12/31/2009		8.25		0.17		2.12			2.29			(0.21	)		—		(0.21	)
Class B Shares
Year ended 12/31/2013		10.57		0.15		1.93			2.08			(0.15	)		—		(0.15	)
Year ended 12/31/2012		9.20		0.15		1.39			1.54			(0.17	)		—		(0.17	)
Year ended 12/31/2011		10.84		0.16		(1.63	)		(1.47	)		(0.17	)		—		(0.17	)
Year ended 12/31/2010		10.34		0.09		0.51			0.60			(0.10	)		—		(0.10	)
Year ended 12/31/2009		8.26		0.11		2.12			2.23			(0.15	)		—		(0.15	)
Legacy Class A Shares
Year ended 12/31/2013		10.53		0.21		1.94			2.15			(0.21	)		—		(0.21	)
Year ended 12/31/2012		9.17		0.22		1.38			1.60			(0.24	)		—		(0.24	)
Year ended 12/31/2011		10.81		0.23		(1.63	)		(1.40	)		(0.24	)		—		(0.24	)
Year ended 12/31/2010		10.30		0.16		0.52			0.68			(0.17	)		—		(0.17	)
Year ended 12/31/2009		8.22		0.17		2.12			2.29			(0.21	)		—		(0.21	)
Legacy Class B Shares
Year ended 12/31/2013		10.58		0.17		1.94			2.11			(0.16	)		—		(0.16	)
Year ended 12/31/2012		9.21		0.18		1.38			1.56			(0.19	)		—		(0.19	)
Year ended 12/31/2011		10.84		0.19		(1.63	)		(1.44	)		(0.19	)		—		(0.19	)
Year ended 12/31/2010		10.33		0.13		0.50			0.63			(0.12	)		—		(0.12	)
Year ended 12/31/2009		8.25		0.14		2.11			2.25			(0.17	)		—		(0.17	)
Institutional Shares
Year ended 12/31/2013		10.57		0.24		1.94			2.18			(0.24	)		—		(0.24	)
Year ended 12/31/2012		9.19		0.25		1.39			1.64			(0.26	)		—		(0.26	)
Year ended 12/31/2011		10.84		0.26		(1.64	)		(1.38	)		(0.27	)		—		(0.27	)
Year ended 12/31/2010		10.33		0.19		0.52			0.71			(0.20	)		—		(0.20	)
Year ended 12/31/2009		8.24		0.19		2.13			2.32			(0.23	)		—		(0.23	)
Class R-1 Shares
Year ended 12/31/2013		10.56		0.18		1.93			2.11			(0.17	)		—		(0.17	)
Year ended 12/31/2012		9.19		0.19		1.38			1.57			(0.20	)		—		(0.20	)
Year ended 12/31/2011		10.83		0.20		(1.63	)		(1.43	)		(0.21	)		—		(0.21	)
Year ended 12/31/2010		10.32		0.13		0.51			0.64			(0.13	)		—		(0.13	)
Year ended 12/31/2009		8.24		0.14		2.13			2.27			(0.19	)		—		(0.19	)
Class R-2 Shares
Year ended 12/31/2013		10.53		0.19		1.94			2.13			(0.20	)		—		(0.20	)
Year ended 12/31/2012		9.17		0.21		1.38			1.59			(0.23	)		—		(0.23	)
Year ended 12/31/2011		10.81		0.22		(1.63	)		(1.41	)		(0.23	)		—		(0.23	)
Year ended 12/31/2010		10.31		0.15		0.51			0.66			(0.16	)		—		(0.16	)
Year ended 12/31/2009		8.23		0.15		2.14			2.29			(0.21	)		—		(0.21	)
Class R-3 Shares
Year ended 12/31/2013		10.58		0.23		1.94			2.17			(0.23	)		—		(0.23	)
Year ended 12/31/2012		9.20		0.24		1.40			1.64			(0.26	)		—		(0.26	)
Year ended 12/31/2011		10.85		0.25		(1.64	)		(1.39	)		(0.26	)		—		(0.26	)
Year ended 12/31/2010		10.35		0.18		0.51			0.69			(0.19	)		—		(0.19	)
Year ended 12/31/2009		8.26		0.19		2.13			2.32			(0.23	)		—		(0.23	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(c) The expense ratios include the effect of the expense reduction changes described in Note 7 under Expense Reduction Agreements.

206 See accompanying notes to financial statements.

Net asset value, end of period		Total return (b)			Ratios/supplemental data
					Net assets, end of period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions
							Expenses (c)			Net investment income (loss)			Expenses			Net investment income (loss)			Portfolio turnover rate
$	12.49		20.44	%	$	68.7		1.19	%		1.81	%		1.23	%		1.77	%		1	%
	10.55		17.41			47.8		1.20			2.23			1.26			2.17			4
	9.19		(12.94	)		38.7		1.20			2.17			1.23			2.14			4
	10.84		6.59			42.5		1.20			1.62			1.23			1.59			4
	10.33		27.79			35.0		1.19			1.86			1.29			1.76			6
	12.50		19.71			12.3		1.71			1.33			1.75			1.29			1
	10.57		16.74			10.3		1.90			1.55			1.96			1.49			4
	9.20		(13.54	)		9.0		1.90			1.48			1.93			1.45			4
	10.84		5.80			10.5		1.90			0.93			1.93			0.90			4
	10.34		26.98			9.8		1.89			1.22			2.00			1.11			6
	12.47		20.43			98.4		1.19			1.84			1.23			1.80			1
	10.53		17.43			83.4		1.20			2.25			1.26			2.19			4
	9.17		(12.91	)		74.1		1.20			2.19			1.23			2.16			4
	10.81		6.58			89.5		1.20			1.63			1.23			1.60			4
	10.30		27.83			87.7		1.19			1.92			1.30			1.81			6
	12.53		19.92			17.9		1.59			1.47			1.63			1.43			1
	10.58		16.96			17.9		1.60			1.88			1.66			1.82			4
	9.21		(13.24	)		18.5		1.60			1.80			1.63			1.77			4
	10.84		6.12			25.6		1.60			1.25			1.63			1.22			4
	10.33		27.30			27.6		1.59			1.53			1.70			1.42			6
	12.51		20.63			44.4		0.94			2.09			0.98			2.05			1
	10.57		17.88			35.0		0.95			2.50			1.01			2.44			4
	9.19		(12.72	)		30.0		0.95			2.45			0.98			2.42			4
	10.84		6.81			35.2		0.95			1.89			0.98			1.86			4
	10.33		28.18			32.8		0.94			2.14			1.05			2.03			6
	12.50		19.97			3.7		1.51			1.54			1.55			1.50			1
	10.56		17.13			3.4		1.52			1.98			1.58			1.92			4
	9.19		(13.19	)		3.1		1.52			1.86			1.55			1.83			4
	10.83		6.21			3.6		1.52			1.33			1.55			1.30			4
	10.32		27.49			4.2		1.51			1.57			1.62			1.46			6
	12.46		20.23			7.4		1.31			1.69			1.35			1.65			1
	10.53		17.30			6.8		1.32			2.10			1.38			2.04			4
	9.17		(13.00	)		5.7		1.32			2.08			1.35			2.05			4
	10.81		6.39			6.4		1.32			1.49			1.35			1.46			4
	10.31		27.75			5.0		1.31			1.76			1.42			1.65			6
	12.52		20.53			2.3		1.01			2.00			1.05			1.96			1
	10.58		17.81			1.9		1.02			2.42			1.08			2.36			4
	9.20		(12.77	)		1.5		1.02			2.37			1.05			2.34			4
	10.85		6.66			1.8		1.02			1.80			1.05			1.77			4
	10.35		28.03			1.6		1.01			2.09			1.12			1.98			6

See accompanying notes to financial statements. 207

STATE FARM MUTUAL FUND TRUST EQUITY AND BOND FUND

(For a share outstanding throughout each period)

			Income from investment operations						Less distributions
	Net asset value, beginning of period		Net investment income (loss) (a)		Net gain (loss) on investments (both realized and unrealized)		Total from investment operations		Net investment income			Net realized gain (b)		Total distributions
Class A Shares
Year ended 12/31/2013	$	8.67	$	0.12	$	1.40	$	1.52	$	(0.12	)	$	—	$	(0.12	)
Year ended 12/31/2012		7.94		0.14		0.73		0.87		(0.14	)		—		(0.14	)
Year ended 12/31/2011		7.86		0.13		0.08		0.21		(0.13	)		—		(0.13	)
Year ended 12/31/2010		7.24		0.12		0.62		0.74		(0.12	)		—		(0.12	)
Year ended 12/31/2009		6.33		0.14		0.90		1.04		(0.13	)		—		(0.13	)
Class B Shares
Year ended 12/31/2013		8.69		0.07		1.38		1.45		(0.06	)		—		(0.06	)
Year ended 12/31/2012		7.95		0.08		0.74		0.82		(0.08	)		—		(0.08	)
Year ended 12/31/2011		7.87		0.07		0.08		0.15		(0.07	)		—		(0.07	)
Year ended 12/31/2010		7.25		0.07		0.62		0.69		(0.07	)		—		(0.07	)
Year ended 12/31/2009		6.34		0.09		0.91		1.00		(0.09	)		—		(0.09	)
Legacy Class A Shares
Year ended 12/31/2013		8.75		0.12		1.40		1.52		(0.11	)		—		(0.11	)
Year ended 12/31/2012		8.01		0.14		0.74		0.88		(0.14	)		—		(0.14	)
Year ended 12/31/2011		7.93		0.13		0.08		0.21		(0.13	)		—		(0.13	)
Year ended 12/31/2010		7.30		0.11		0.63		0.74		(0.11	)		—		(0.11	)
Year ended 12/31/2009		6.38		0.13		0.92		1.05		(0.13	)		—		(0.13	)
Legacy Class B Shares
Year ended 12/31/2013		8.77		0.08		1.41		1.49		(0.07	)		—		(0.07	)
Year ended 12/31/2012		8.03		0.10		0.74		0.84		(0.10	)		—		(0.10	)
Year ended 12/31/2011		7.94		0.09		0.09		0.18		(0.09	)		—		(0.09	)
Year ended 12/31/2010		7.31		0.08		0.63		0.71		(0.08	)		—		(0.08	)
Year ended 12/31/2009		6.39		0.11		0.91		1.02		(0.10	)		—		(0.10	)
Institutional Shares
Year ended 12/31/2013		8.68		0.14		1.40		1.54		(0.14	)		—		(0.14	)
Year ended 12/31/2012		7.95		0.16		0.73		0.89		(0.16	)		—		(0.16	)
Year ended 12/31/2011		7.86		0.15		0.09		0.24		(0.15	)		—		(0.15	)
Year ended 12/31/2010		7.24		0.13		0.62		0.75		(0.13	)		—		(0.13	)
Year ended 12/31/2009		6.33		0.15		0.90		1.05		(0.14	)		—		(0.14	)
Class R-1 Shares
Year ended 12/31/2013		8.57		0.08		1.38		1.46		(0.08	)		—		(0.08	)
Year ended 12/31/2012		7.84		0.11		0.73		0.84		(0.11	)		—		(0.11	)
Year ended 12/31/2011		7.76		0.10		0.08		0.18		(0.10	)		—		(0.10	)
Year ended 12/31/2010		7.15		0.08		0.62		0.70		(0.09	)		—		(0.09	)
Year ended 12/31/2009		6.25		0.11		0.90		1.01		(0.11	)		—		(0.11	)
Class R-2 Shares
Year ended 12/31/2013		8.58		0.11		1.37		1.48		(0.10	)		—		(0.10	)
Year ended 12/31/2012		7.86		0.13		0.72		0.85		(0.13	)		—		(0.13	)
Year ended 12/31/2011		7.78		0.12		0.08		0.20		(0.12	)		—		(0.12	)
Year ended 12/31/2010		7.17		0.10		0.62		0.72		(0.11	)		—		(0.11	)
Year ended 12/31/2009		6.26		0.13		0.90		1.03		(0.12	)		—		(0.12	)
Class R-3 Shares
Year ended 12/31/2013		8.59		0.13		1.39		1.52		(0.13	)		—		(0.13	)
Year ended 12/31/2012		7.87		0.15		0.72		0.87		(0.15	)		—		(0.15	)
Year ended 12/31/2011		7.79		0.14		0.08		0.22		(0.14	)		—		(0.14	)
Year ended 12/31/2010		7.17		0.12		0.63		0.75		(0.13	)		—		(0.13	)
Year ended 12/31/2009		6.27		0.14		0.90		1.04		(0.14	)		—		(0.14	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net realized gain distributions represent less than $0.01 per share for all classes in 2011.

(c) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(d) The expense ratios include the effect of the expense reduction change for Class B shares described in Note 7 under Expense Reduction Agreements.

(e) Expense ratios relate to the Equity and Bond Fund only and do not reflect the Fund’s proportionate share of the expenses of the underlying funds.

208 See accompanying notes to financial statements.

Net asset value, end  of period		Total return (c)			Ratios/supplemental data
					Net assets, end of period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions
							Expenses (d) (e)			Net investment income (loss)			Expenses (e)			Net investment income (loss)			Portfolio turnover rate
$	10.07		17.53	%	$	82.6		0.25	%		1.30	%		0.34	%		1.21	%		0	%
	8.67		10.98			52.2		0.25			1.69			0.35			1.59			1
	7.94		2.73			40.8		0.25			1.62			0.36			1.51			2
	7.86		10.25			34.6		0.25			1.55			0.36			1.44			1
	7.24		16.48			21.5		0.25			2.07			0.37			1.95			1
	10.08		16.74			12.8		0.79			0.70			0.88			0.61			0
	8.69		10.32			10.4		0.95			0.93			1.05			0.83			1
	7.95		2.01			9.3		0.95			0.90			1.06			0.79			2
	7.87		9.55			9.1		0.85			0.88			0.96			0.77			1
	7.25		15.77			8.2		0.85			1.41			0.97			1.29			1
	10.16		17.46			101.9		0.25			1.22			0.34			1.13			0
	8.75		11.00			88.3		0.25			1.62			0.35			1.52			1
	8.01		2.68			80.6		0.25			1.60			0.36			1.49			2
	7.93		10.27			77.7		0.25			1.48			0.36			1.37			1
	7.30		16.47			70.8		0.25			2.00			0.37			1.88			1
	10.19		17.06			24.8		0.65			0.80			0.74			0.71			0
	8.77		10.51			24.0		0.65			1.18			0.75			1.08			1
	8.03		2.35			25.5		0.65			1.13			0.76			1.02			2
	7.94		9.79			31.9		0.65			1.05			0.77			0.93			1
	7.31		16.00			34.1		0.65			1.59			0.77			1.47			1
	10.08		17.78			24.5		0.00			1.49			0.09			1.40			0
	8.68		11.23			19.7		0.00			1.90			0.10			1.80			1
	7.95		3.10			15.8		0.00			1.86			0.11			1.75			2
	7.86		10.49			14.6		0.00			1.74			0.11			1.63			1
	7.24		16.73			12.2		0.00			2.28			0.12			2.16			1
	9.95		17.07			2.5		0.57			0.86			0.66			0.77			0
	8.57		10.78			2.6		0.57			1.32			0.67			1.22			1
	7.84		2.42			2.3		0.57			1.29			0.68			1.18			2
	7.76		9.86			2.3		0.57			1.14			0.69			1.02			1
	7.15		16.16			2.5		0.57			1.68			0.69			1.56			1
	9.96		17.33			5.3		0.37			1.13			0.46			1.04			0
	8.58		10.82			4.5		0.37			1.48			0.47			1.38			1
	7.86		2.63			3.6		0.37			1.46			0.48			1.35			2
	7.78		10.04			3.7		0.37			1.31			0.49			1.19			1
	7.17		16.51			3.9		0.37			1.91			0.49			1.79			1
	9.98		17.76			1.5		0.07			1.40			0.16			1.31			0
	8.59		11.14			1.3		0.07			1.80			0.17			1.70			1
	7.87		2.92			1.2		0.07			1.75			0.18			1.64			2
	7.79		10.52			1.1		0.07			1.66			0.18			1.55			1
	7.17		16.64			0.9		0.07			2.19			0.19			2.07			1

See accompanying notes to financial statements. 209

STATE FARM MUTUAL FUND TRUST BOND FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations								Less distributions
			Net investment income (loss)		Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income			Net realized gain			Total distributions
Class A Shares
Year ended 12/31/2013	$	11.78	$	0.29	$	(0.71	)	$	(0.42	)	$	(0.29	)	$	(0.08	)	$	(0.37	)
Year ended 12/31/2012		11.65		0.31		0.13			0.44			(0.31	)		—			(0.31	)
Year ended 12/31/2011		11.12		0.34		0.53			0.87			(0.34	)		—			(0.34	)
Year ended 12/31/2010		10.88		0.36		0.24			0.60			(0.36	)		—			(0.36	)
Year ended 12/31/2009		10.29		0.43		0.59			1.02			(0.43	)		—			(0.43	)
Class B Shares
Year ended 12/31/2013		11.78		0.24		(0.72	)		(0.48	)		(0.24	)		(0.08	)		(0.32	)
Year ended 12/31/2012		11.65		0.26		0.13			0.39			(0.26	)		—			(0.26	)
Year ended 12/31/2011		11.11		0.30		0.54			0.84			(0.30	)		—			(0.30	)
Year ended 12/31/2010		10.87		0.32		0.24			0.56			(0.32	)		—			(0.32	)
Year ended 12/31/2009		10.28		0.39		0.59			0.98			(0.39	)		—			(0.39	)
Legacy Class A Shares
Year ended 12/31/2013		11.79		0.29		(0.71	)		(0.42	)		(0.29	)		(0.08	)		(0.37	)
Year ended 12/31/2012		11.66		0.31		0.13			0.44			(0.31	)		—			(0.31	)
Year ended 12/31/2011		11.12		0.34		0.54			0.88			(0.34	)		—			(0.34	)
Year ended 12/31/2010		10.89		0.36		0.23			0.59			(0.36	)		—			(0.36	)
Year ended 12/31/2009		10.30		0.44		0.59			1.03			(0.44	)		—			(0.44	)
Legacy Class B Shares
Year ended 12/31/2013		11.80		0.24		(0.72	)		(0.48	)		(0.24	)		(0.08	)		(0.32	)
Year ended 12/31/2012		11.67		0.26		0.13			0.39			(0.26	)		—			(0.26	)
Year ended 12/31/2011		11.13		0.30		0.54			0.84			(0.30	)		—			(0.30	)
Year ended 12/31/2010		10.89		0.32		0.24			0.56			(0.32	)		—			(0.32	)
Year ended 12/31/2009		10.30		0.39		0.59			0.98			(0.39	)		—			(0.39	)
Institutional Shares
Year ended 12/31/2013		11.78		0.32		(0.72	)		(0.40	)		(0.32	)		(0.08	)		(0.40	)
Year ended 12/31/2012		11.65		0.33		0.13			0.46			(0.33	)		—			(0.33	)
Year ended 12/31/2011		11.11		0.37		0.54			0.91			(0.37	)		—			(0.37	)
Year ended 12/31/2010		10.87		0.39		0.24			0.63			(0.39	)		—			(0.39	)
Year ended 12/31/2009		10.29		0.46		0.58			1.04			(0.46	)		—			(0.46	)
Class R-1 Shares
Year ended 12/31/2013		11.78		0.25		(0.71	)		(0.46	)		(0.25	)		(0.08	)		(0.33	)
Year ended 12/31/2012		11.65		0.27		0.13			0.40			(0.27	)		—			(0.27	)
Year ended 12/31/2011		11.12		0.30		0.53			0.83			(0.30	)		—			(0.30	)
Year ended 12/31/2010		10.88		0.33		0.24			0.57			(0.33	)		—			(0.33	)
Year ended 12/31/2009		10.29		0.40		0.59			0.99			(0.40	)		—			(0.40	)
Class R-2 Shares
Year ended 12/31/2013		11.77		0.27		(0.71	)		(0.44	)		(0.27	)		(0.08	)		(0.35	)
Year ended 12/31/2012		11.64		0.29		0.13			0.42			(0.29	)		—			(0.29	)
Year ended 12/31/2011		11.11		0.33		0.53			0.86			(0.33	)		—			(0.33	)
Year ended 12/31/2010		10.87		0.35		0.24			0.59			(0.35	)		—			(0.35	)
Year ended 12/31/2009		10.28		0.42		0.59			1.01			(0.42	)		—			(0.42	)
Class R-3 Shares
Year ended 12/31/2013		11.79		0.31		(0.72	)		(0.41	)		(0.31	)		(0.08	)		(0.39	)
Year ended 12/31/2012		11.66		0.33		0.13			0.46			(0.33	)		—			(0.33	)
Year ended 12/31/2011		11.12		0.36		0.54			0.90			(0.36	)		—			(0.36	)
Year ended 12/31/2010		10.88		0.38		0.24			0.62			(0.38	)		—			(0.38	)
Year ended 12/31/2009		10.29		0.45		0.59			1.04			(0.45	)		—			(0.45	)

(a) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

210 See accompanying notes to financial statements.

Net asset value, end of period		Total return (a)			Ratios/supplemental data
					Net assets, end of period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions
							Expenses			Net investment income (loss)			Expenses			Net investment income (loss)			Portfolio turnover rate
$	10.99		(3.61	)%	$	333.0		0.66	%		2.52	%		0.66	%		2.52	%		21	%
	11.78		3.77			368.6		0.66			2.57			0.66			2.57			8
	11.65		7.95			208.9		0.67			2.99			0.67			2.99			8
	11.12		5.56			160.5		0.68			3.19			0.68			3.19			16
	10.88		10.12			84.6		0.69			4.01			0.69			4.01			11
	10.98		(4.08	)		11.9		1.06			2.13			1.06			2.13			21
	11.78		3.36			12.4		1.06			2.20			1.06			2.20			8
	11.65		7.62			10.9		1.07			2.60			1.07			2.60			8
	11.11		5.14			9.7		1.08			2.82			1.08			2.82			16
	10.87		9.69			8.2		1.09			3.66			1.09			3.66			11
	11.00		(3.60	)		131.1		0.66			2.52			0.66			2.52			21
	11.79		3.77			153.3		0.66			2.60			0.66			2.60			8
	11.66		8.05			142.4		0.67			3.00			0.67			3.00			8
	11.12		5.46			130.2		0.68			3.23			0.68			3.23			16
	10.89		10.12			120.8		0.69			4.08			0.69			4.08			11
	11.00		(4.07	)		7.4		1.06			2.10			1.06			2.10			21
	11.80		3.36			22.8		1.06			2.21			1.06			2.21			8
	11.67		7.61			38.1		1.07			2.61			1.07			2.61			8
	11.13		5.14			47.3		1.08			2.84			1.08			2.84			16
	10.89		9.68			51.9		1.09			3.68			1.09			3.68			11
	10.98		(3.45	)		185.7		0.41			2.78			0.41			2.78			21
	11.78		4.03			175.9		0.41			2.84			0.41			2.84			8
	11.65		8.32			140.1		0.42			3.25			0.42			3.25			8
	11.11		5.82			124.3		0.43			3.47			0.43			3.47			16
	10.87		10.30			105.7		0.44			4.30			0.44			4.30			11
	10.99		(3.91	)		3.7		0.98			2.20			0.98			2.20			21
	11.78		3.44			4.4		0.98			2.28			0.98			2.28			8
	11.65		7.61			3.9		0.99			2.68			0.99			2.68			8
	11.12		5.22			3.7		1.00			2.92			1.00			2.92			16
	10.88		9.77			4.5		1.01			3.75			1.01			3.75			11
	10.98		(3.73	)		8.1		0.78			2.41			0.78			2.41			21
	11.77		3.65			8.6		0.78			2.47			0.78			2.47			8
	11.64		7.83			6.7		0.79			2.88			0.79			2.88			8
	11.11		5.43			5.9		0.80			3.10			0.80			3.10			16
	10.87		10.00			4.9		0.81			3.94			0.81			3.94			11
	10.99		(3.51	)		1.8		0.48			2.70			0.48			2.70			21
	11.79		3.96			2.2		0.48			2.78			0.48			2.78			8
	11.66		8.24			1.9		0.49			3.19			0.49			3.19			8
	11.12		5.75			1.7		0.50			3.42			0.50			3.42			16
	10.88		10.32			1.2		0.51			4.27			0.51			4.27			11

See accompanying notes to financial statements. 211

STATE FARM MUTUAL FUND TRUST TAX ADVANTAGED BOND FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations								Less distributions
			Net investment income (loss)		Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income			Net realized gain (a)			Total distributions
Class A Shares
Year ended 12/31/2013	$	11.95	$	0.31	$	(0.72	)	$	(0.41	)	$	(0.31	)	$	—		$	(0.31	)
Year ended 12/31/2012		11.68		0.30		0.27			0.57			(0.30	)		—			(0.30	)
Year ended 12/31/2011		10.90		0.36		0.78			1.14			(0.36	)		—			(0.36	)
Year ended 12/31/2010		11.13		0.38		(0.22	)		0.16			(0.38	)		(0.01	)		(0.39	)
Year ended 12/31/2009		10.51		0.41		0.65			1.06			(0.41	)		(0.03	)		(0.44	)
Class B Shares
Year ended 12/31/2013		11.95		0.26		(0.73	)		(0.47	)		(0.26	)		—			(0.26	)
Year ended 12/31/2012		11.68		0.26		0.27			0.53			(0.26	)		—			(0.26	)
Year ended 12/31/2011		10.89		0.32		0.79			1.11			(0.32	)		—			(0.32	)
Year ended 12/31/2010		11.13		0.33		(0.23	)		0.10			(0.33	)		(0.01	)		(0.34	)
Year ended 12/31/2009		10.50		0.37		0.66			1.03			(0.37	)		(0.03	)		(0.40	)
Legacy Class A Shares
Year ended 12/31/2013		11.93		0.31		(0.72	)		(0.41	)		(0.31	)		—			(0.31	)
Year ended 12/31/2012		11.66		0.30		0.27			0.57			(0.30	)		—			(0.30	)
Year ended 12/31/2011		10.88		0.36		0.78			1.14			(0.36	)		—			(0.36	)
Year ended 12/31/2010		11.11		0.38		(0.22	)		0.16			(0.38	)		(0.01	)		(0.39	)
Year ended 12/31/2009		10.49		0.41		0.65			1.06			(0.41	)		(0.03	)		(0.44	)
Legacy Class B Shares
Year ended 12/31/2013		11.93		0.26		(0.72	)		(0.46	)		(0.26	)		—			(0.26	)
Year ended 12/31/2012		11.66		0.26		0.27			0.53			(0.26	)		—			(0.26	)
Year ended 12/31/2011		10.88		0.32		0.78			1.10			(0.32	)		—			(0.32	)
Year ended 12/31/2010		11.11		0.33		(0.22	)		0.11			(0.33	)		(0.01	)		(0.34	)
Year ended 12/31/2009		10.49		0.37		0.65			1.02			(0.37	)		(0.03	)		(0.40	)

(a) Net realized gain distributions represent less than $0.01 per share for all classes in 2012.

(b) Total return does not reflect the effect of sales charges.

212 See accompanying notes to financial statements.

Net asset value, end  of period		Total return (b)					Ratios/supplemental data
					Net assets, end of period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions
							Expenses			Net investment income (loss)			Expenses			Net investment income (loss)			Portfolio turnover rate
$	11.23		(3.45	)%	$	388.2		0.67	%		2.68	%		0.67	%		2.68	%		14	%
	11.95		4.97			453.5		0.66			2.53			0.66			2.53			3
	11.68		10.69			211.1		0.68			3.22			0.68			3.22			10
	10.90		1.35			159.2		0.68			3.35			0.68			3.35			4
	11.13		10.23			91.4		0.70			3.66			0.70			3.66			4
	11.22		(3.92	)		6.6		1.07			2.29			1.07			2.29			14
	11.95		4.55			7.0		1.06			2.16			1.06			2.16			3
	11.68		10.35			5.3		1.08			2.83			1.08			2.83			10
	10.89		0.86			4.5		1.08			2.97			1.08			2.97			4
	11.13		9.91			3.8		1.10			3.34			1.10			3.34			4
	11.21		(3.46	)		81.3		0.67			2.69			0.67			2.69			14
	11.93		4.98			91.6		0.66			2.57			0.66			2.57			3
	11.66		10.70			77.7		0.68			3.23			0.68			3.23			10
	10.88		1.35			66.2		0.68			3.38			0.68			3.38			4
	11.11		10.25			66.9		0.70			3.74			0.70			3.74			4
	11.21		(3.85	)		1.0		1.05			2.12			1.05			2.12			14
	11.93		4.56			16.7		1.06			2.18			1.06			2.18			3
	11.66		10.26			25.9		1.08			2.84			1.08			2.84			10
	10.88		0.95			25.1		1.08			2.98			1.08			2.98			4
	11.11		9.81			26.1		1.10			3.34			1.10			3.34			4

See accompanying notes to financial statements. 213

STATE FARM MUTUAL FUND TRUST MONEY MARKET FUND

(For a share outstanding throughout each period)

			Income from investment operations						Less distributions
	Net asset value, beginning of period		Net investment income (a)		Net gain (loss) on investments (both realized and unrealized) (b)		Total from investment operations		Net investment income (a)		Total distributions
Class A Shares
Year ended 12/31/2013	$	1.00	$	—	$	—	$	—	$	—	$	—
Year ended 12/31/2012		1.00		—		—		—		—		—
Year ended 12/31/2011		1.00		—		—		—		—		—
Year ended 12/31/2010		1.00		—		—		—		—		—
Year ended 12/31/2009		1.00		—		—		—		—		—
Class B Shares
Year ended 12/31/2013		1.00		—		—		—		—		—
Year ended 12/31/2012		1.00		—		—		—		—		—
Year ended 12/31/2011		1.00		—		—		—		—		—
Year ended 12/31/2010		1.00		—		—		—		—		—
Year ended 12/31/2009		1.00		—		—		—		—		—
Legacy Class A Shares
Year ended 12/31/2013		1.00		—		—		—		—		—
Year ended 12/31/2012		1.00		—		—		—		—		—
Year ended 12/31/2011		1.00		—		—		—		—		—
Year ended 12/31/2010		1.00		—		—		—		—		—
Year ended 12/31/2009		1.00		—		—		—		—		—
Legacy Class B Shares
Year ended 12/31/2013		1.00		—		—		—		—		—
Year ended 12/31/2012		1.00		—		—		—		—		—
Year ended 12/31/2011		1.00		—		—		—		—		—
Year ended 12/31/2010		1.00		—		—		—		—		—
Year ended 12/31/2009		1.00		—		—		—		—		—
Institutional Shares
Year ended 12/31/2013		1.00		—		—		—		—		—
Year ended 12/31/2012		1.00		—		—		—		—		—
Year ended 12/31/2011		1.00		—		—		—		—		—
Year ended 12/31/2010		1.00		—		—		—		—		—
Year ended 12/31/2009		1.00		—		—		—		—		—
Class R-1 Shares
Year ended 12/31/2013		1.00		—		—		—		—		—
Year ended 12/31/2012		1.00		—		—		—		—		—
Year ended 12/31/2011		1.00		—		—		—		—		—
Year ended 12/31/2010		1.00		—		—		—		—		—
Year ended 12/31/2009		1.00		—		—		—		—		—
Class R-2 Shares
Year ended 12/31/2013		1.00		—		—		—		—		—
Year ended 12/31/2012		1.00		—		—		—		—		—
Year ended 12/31/2011		1.00		—		—		—		—		—
Year ended 12/31/2010		1.00		—		—		—		—		—
Year ended 12/31/2009		1.00		—		—		—		—		—
Class R-3 Shares
Year ended 12/31/2013		1.00		—		—		—		—		—
Year ended 12/31/2012		1.00		—		—		—		—		—
Year ended 12/31/2011		1.00		—		—		—		—		—
Year ended 12/31/2010		1.00		—		—		—		—		—
Year ended 12/31/2009		1.00		—		—		—		—		—

(a) Net investment income and distributions represent less than $0.01 per share for Institutional and Class R-3 shares in 2013, 2012, 2011 and 2010 and all classes in 2009.

(b) Net gain (loss) on investments represents less than $0.01 per share for all classes in 2013.

(c) Total return does not reflect the effect of sales charge for Class B and Legacy Class B shares. All other classes do not have a sales charge.

(d) Net investment income and Total return represent less than 0.005% per share for Institutional and Class R-3 shares in 2013, 2012, 2011 and 2010.

(e) The expense ratios for 2013, 2012, 2011, 2010 and 2009 include the effect of the voluntary fee waivers by SFIMC and VP Management Corp. described in Note 7 under Expense Reduction Agreements.

214 See accompanying notes to financial statements.

					Ratios/supplemental data
							Average Net Asset ratios						Average Net Asset ratios
							assuming expense reductions						absent expense reductions
Net asset value, end of period		Total return (c) (d)			Net assets, end of  period (millions)		Expenses (e)			Net investment income (d)			Expenses			Net investment income
$	1.00		0.00	%	$	164.2		0.09	%		0.00	%		0.59	%		(0.50	)%
	1.00		0.00			119.8		0.11			0.00			0.59			(0.48	)
	1.00		0.00			106.8		0.11			0.00			0.60			(0.49	)
	1.00		0.00			94.0		0.17			0.00			0.60			(0.43	)
	1.00		0.04			80.8		0.29			0.04			0.61			(0.28	)
	1.00		0.00			0.7		0.09			0.00			0.99			(0.90	)
	1.00		0.00			3.1		0.11			0.00			0.99			(0.88	)
	1.00		0.00			3.2		0.11			0.00			1.00			(0.89	)
	1.00		0.00			3.1		0.17			0.00			1.00			(0.83	)
	1.00		0.01			3.3		0.32			0.01			1.01			(0.68	)
	1.00		0.00			71.0		0.09			0.00			0.59			(0.50	)
	1.00		0.00			75.4		0.11			0.00			0.59			(0.48	)
	1.00		0.00			80.5		0.11			0.00			0.60			(0.49	)
	1.00		0.00			75.0		0.17			0.00			0.60			(0.43	)
	1.00		0.04			88.8		0.30			0.04			0.61			(0.27	)
	1.00		0.00			2.0		0.09			0.00			0.99			(0.90	)
	1.00		0.00			5.2		0.11			0.00			0.99			(0.88	)
	1.00		0.00			7.7		0.12			0.00			1.00			(0.88	)
	1.00		0.00			8.6		0.17			0.00			1.00			(0.83	)
	1.00		0.01			10.7		0.32			0.01			1.01			(0.68	)
	1.00		0.00			59.2		0.09			0.00			0.44			(0.35	)
	1.00		0.00			59.5		0.11			0.00			0.44			(0.33	)
	1.00		0.00			52.0		0.11			0.00			0.45			(0.34	)
	1.00		0.00			40.8		0.17			0.00			0.45			(0.28	)
	1.00		0.06			38.4		0.28			0.06			0.46			(0.12	)
	1.00		0.00			4.6		0.09			0.00			0.91			(0.82	)
	1.00		0.00			5.6		0.11			0.00			0.91			(0.80	)
	1.00		0.00			5.6		0.12			0.00			0.92			(0.80	)
	1.00		0.00			5.9		0.17			0.00			0.92			(0.75	)
	1.00		0.02			7.0		0.32			0.02			0.93			(0.59	)
	1.00		0.00			14.4		0.09			0.00			0.71			(0.62	)
	1.00		0.00			17.4		0.11			0.00			0.71			(0.60	)
	1.00		0.00			15.8		0.11			0.00			0.72			(0.61	)
	1.00		0.00			14.5		0.17			0.00			0.72			(0.55	)
	1.00		0.03			13.4		0.31			0.03			0.73			(0.39	)
	1.00		0.00			1.5		0.09			0.00			0.51			(0.42	)
	1.00		0.00			2.2		0.11			0.00			0.51			(0.40	)
	1.00		0.00			2.5		0.11			0.00			0.52			(0.41	)
	1.00		0.00			3.1		0.17			0.00			0.52			(0.35	)
	1.00		0.05			1.9		0.28			0.05			0.53			(0.20	)

See accompanying notes to financial statements. 215

STATE FARM MUTUAL FUND TRUST LIFEPATH RETIREMENT FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations						Less distributions
			Net investment income (loss) (a)(b)		Net gain (loss) on investments (both realized and unrealized)		Total from investment operations		Net investment income			Net realized gain			Total distributions
Class A Shares
Year ended 12/31/2013	$	12.20	$	0.13	$	0.57	$	0.70	$	(0.13	)	$	(0.40	)	$	(0.53	)
Year ended 12/31/2012		11.69		0.17		0.80		0.97		(0.19	)		(0.27	)		(0.46	)
Year ended 12/31/2011		11.51		0.22		0.18		0.40		(0.22	)		—			(0.22	)
Year ended 12/31/2010		10.77		0.19		0.76		0.95		(0.19	)		(0.02	)		(0.21	)
Year ended 12/31/2009		9.42		0.25		1.39		1.64		(0.29	)		—			(0.29	)
Class B Shares
Year ended 12/31/2013		12.27		0.09		0.58		0.67		(0.09	)		(0.40	)		(0.49	)
Year ended 12/31/2012		11.75		0.10		0.81		0.91		(0.12	)		(0.27	)		(0.39	)
Year ended 12/31/2011		11.57		0.14		0.18		0.32		(0.14	)		—			(0.14	)
Year ended 12/31/2010		10.82		0.11		0.77		0.88		(0.11	)		(0.02	)		(0.13	)
Year ended 12/31/2009		9.46		0.18		1.40		1.58		(0.22	)		—			(0.22	)
Legacy Class A Shares
Year ended 12/31/2013		12.44		0.13		0.59		0.72		(0.12	)		(0.40	)		(0.52	)
Year ended 12/31/2012		11.91		0.17		0.81		0.98		(0.18	)		(0.27	)		(0.45	)
Year ended 12/31/2011		11.73		0.22		0.18		0.40		(0.22	)		—			(0.22	)
Year ended 12/31/2010		10.96		0.19		0.78		0.97		(0.18	)		(0.02	)		(0.20	)
Year ended 12/31/2009		9.57		0.26		1.42		1.68		(0.29	)		—			(0.29	)
Legacy Class B Shares
Year ended 12/31/2013		12.49		0.08		0.59		0.67		(0.07	)		(0.40	)		(0.47	)
Year ended 12/31/2012		11.95		0.12		0.81		0.93		(0.12	)		(0.27	)		(0.39	)
Year ended 12/31/2011		11.76		0.18		0.18		0.36		(0.17	)		—			(0.17	)
Year ended 12/31/2010		10.99		0.14		0.79		0.93		(0.14	)		(0.02	)		(0.16	)
Year ended 12/31/2009		9.60		0.20		1.44		1.64		(0.25	)		—			(0.25	)
Institutional Shares
Year ended 12/31/2013		12.44		0.16		0.59		0.75		(0.15	)		(0.40	)		(0.55	)
Year ended 12/31/2012		11.92		0.20		0.80		1.00		(0.21	)		(0.27	)		(0.48	)
Year ended 12/31/2011		11.73		0.25		0.19		0.44		(0.25	)		—			(0.25	)
Year ended 12/31/2010		10.96		0.22		0.78		1.00		(0.21	)		(0.02	)		(0.23	)
Year ended 12/31/2009		9.58		0.28		1.41		1.69		(0.31	)		—			(0.31	)
Class R-1 Shares
Year ended 12/31/2013		12.24		0.09		0.58		0.67		(0.09	)		(0.40	)		(0.49	)
Year ended 12/31/2012		11.72		0.13		0.80		0.93		(0.14	)		(0.27	)		(0.41	)
Year ended 12/31/2011		11.54		0.18		0.18		0.36		(0.18	)		—			(0.18	)
Year ended 12/31/2010		10.79		0.15		0.76		0.91		(0.14	)		(0.02	)		(0.16	)
Year ended 12/31/2009		9.43		0.22		1.40		1.62		(0.26	)		—			(0.26	)
Class R-2 Shares
Year ended 12/31/2013		12.48		0.11		0.59		0.70		(0.11	)		(0.40	)		(0.51	)
Year ended 12/31/2012		11.94		0.15		0.83		0.98		(0.17	)		(0.27	)		(0.44	)
Year ended 12/31/2011		11.75		0.21		0.19		0.40		(0.21	)		—			(0.21	)
Year ended 12/31/2010		10.99		0.18		0.77		0.95		(0.17	)		(0.02	)		(0.19	)
Year ended 12/31/2009		9.60		0.24		1.43		1.67		(0.28	)		—			(0.28	)
Class R-3 Shares
Year ended 12/31/2013		12.43		0.15		0.60		0.75		(0.15	)		(0.40	)		(0.55	)
Year ended 12/31/2012		11.90		0.19		0.81		1.00		(0.20	)		(0.27	)		(0.47	)
Year ended 12/31/2011		11.71		0.25		0.18		0.43		(0.24	)		—			(0.24	)
Year ended 12/31/2010		10.95		0.21		0.77		0.98		(0.20	)		(0.02	)		(0.22	)
Year ended 12/31/2009		9.56		0.26		1.44		1.70		(0.31	)		—			(0.31	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net amounts and ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio, indirect proportionate share of the expenses of the Underlying Master Portfolios, and applicable Expense Reduction Agreements described in Note 7; but do not reflect indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, assuming applicable expense reductions, were 0.25% and 1.83%, respectively, for the year ended December 31, 2013.

(c) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(d) The expense ratios include the effect of the expense reduction changes described in Note 7 under Expense Reduction Agreements.

(e) Ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio and indirect proportionate share of the expenses of the Underlying Master Portfolios; but do not reflect otherwise applicable Expense Reduction Agreements described in Note 7 or indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, excluding any otherwise applicable expense reductions, were 0.54% and 1.54%, respectively, for the year ended December 31, 2013.

(f) Amount represents the portfolio turnover rate of the Master Portfolio. For 2013, includes the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. For 2012, 2011, 2010 and 2009, excluded the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund and BlackRock Emerging Markets Fund, Inc. If these transactions had been included to conform to the year-end 2013 presentation, portfolio turnover rate would have been 13%, 20%, 14% and 18% for the years ended 2012, 2011, 2010 and 2009, respectively. For 2009, excludes in-kind contribution of portfolio securities received in a fund merger on November 20, 2009.

216 See accompanying notes to financial statements.

Net asset value, end  of period		Total return (c)			Ratios/supplemental data
					Net assets, end of  period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions						Portfolio turnover rate (f)
							Expenses (b) (d)			Net investment income (loss) (b)			Expenses (e)			Net investment income (loss)  (e)
$	12.37		5.80	%	$	652.2		1.07	%		1.02	%		1.45	%		0.64	%		17	%
	12.20		8.31			483.2		1.14			1.37			1.45			1.06			4
	11.69		3.51			352.7		1.17			1.89			1.47			1.59			4
	11.51		8.92			266.9		1.17			1.71			1.51			1.37			4
	10.77		17.62			191.3		1.21			2.72			1.65			2.28			6
	12.45		5.51			12.7		1.37			0.72			1.75			0.34			17
	12.27		7.65			11.4		1.69			0.81			2.00			0.50			4
	11.75		2.85			10.3		1.87			1.18			2.17			0.88			4
	11.57		8.22			9.5		1.87			0.99			2.21			0.65			4
	10.82		16.86			8.2		1.91			1.95			2.38			1.48			6
	12.64		5.81			282.7		1.07			1.02			1.45			0.64			17
	12.44		8.29			276.9		1.14			1.36			1.45			1.05			4
	11.91		3.50			258.3		1.17			1.88			1.47			1.58			4
	11.73		9.01			263.0		1.17			1.68			1.51			1.34			4
	10.96		17.61			261.1		1.21			2.72			1.66			2.27			6
	12.69		5.39			14.7		1.48			0.60			1.86			0.22			17
	12.49		7.85			23.2		1.54			0.93			1.85			0.62			4
	11.95		3.06			34.6		1.57			1.47			1.87			1.17			4
	11.76		8.55			44.4		1.57			1.28			1.91			0.94			4
	10.99		17.22			46.0		1.61			2.21			2.05			1.77			6
	12.64		6.15			89.8		0.82			1.27			1.20			0.89			17
	12.44		8.47			78.5		0.89			1.62			1.20			1.31			4
	11.92		3.78			64.6		0.92			2.14			1.22			1.84			4
	11.73		9.29			57.1		0.92			1.94			1.26			1.60			4
	10.96		17.90			53.1		0.96			2.94			1.38			2.52			6
	12.42		5.50			6.4		1.39			0.70			1.77			0.32			17
	12.24		8.00			5.8		1.46			1.03			1.77			0.72			4
	11.72		3.16			5.3		1.49			1.56			1.79			1.26			4
	11.54		8.59			5.3		1.49			1.34			1.83			1.00			4
	10.79		17.34			6.5		1.53			2.42			2.00			1.95			6
	12.67		5.64			19.9		1.19			0.89			1.57			0.51			17
	12.48		8.14			19.1		1.26			1.23			1.57			0.92			4
	11.94		3.38			16.6		1.29			1.77			1.59			1.47			4
	11.75		8.88			16.5		1.29			1.59			1.63			1.25			4
	10.99		17.55			12.1		1.33			2.53			1.76			2.10			6
	12.63		6.09			1.7		0.89			1.20			1.27			0.82			17
	12.43		8.44			1.6		0.96			1.53			1.27			1.22			4
	11.90		3.71			1.6		0.99			2.06			1.29			1.76			4
	11.71		9.13			1.3		0.99			1.86			1.33			1.52			4
	10.95		17.87			1.1		1.02			2.76			1.42			2.36			6

See accompanying notes to financial statements. 217

STATE FARM MUTUAL FUND TRUST LIFEPATH 2020 FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations							Less distributions
			Net investment income (loss) (a)(b)		Net gain (loss) on investments (both realized and unrealized)			Total from investment operations		Net investment income			Net realized gain			Total distributions
Class A Shares
Year ended 12/31/2013	$	13.91	$	0.17	$	1.13		$	1.30	$	(0.17	)	$	(0.59	)	$	(0.76	)
Year ended 12/31/2012		12.79		0.20		1.15			1.35		(0.21	)		(0.02	)		(0.23	)
Year ended 12/31/2011		12.86		0.22		(0.08	)		0.14		(0.21	)		—			(0.21	)
Year ended 12/31/2010		11.81		0.19		1.04			1.23		(0.18	)		—			(0.18	)
Year ended 12/31/2009		9.85		0.24		1.95			2.19		(0.23	)		—			(0.23	)
Class B Shares
Year ended 12/31/2013		13.82		0.07		1.13			1.20		(0.07	)		(0.59	)		(0.66	)
Year ended 12/31/2012		12.72		0.10		1.14			1.24		(0.12	)		(0.02	)		(0.14	)
Year ended 12/31/2011		12.79		0.13		(0.08	)		0.05		(0.12	)		—			(0.12	)
Year ended 12/31/2010		11.75		0.10		1.04			1.14		(0.10	)		—			(0.10	)
Year ended 12/31/2009		9.82		0.17		1.92			2.09		(0.16	)		—			(0.16	)
Legacy Class A Shares
Year ended 12/31/2013		13.86		0.17		1.13			1.30		(0.17	)		(0.59	)		(0.76	)
Year ended 12/31/2012		12.74		0.20		1.15			1.35		(0.21	)		(0.02	)		(0.23	)
Year ended 12/31/2011		12.81		0.22		(0.08	)		0.14		(0.21	)		—			(0.21	)
Year ended 12/31/2010		11.75		0.18		1.05			1.23		(0.17	)		—			(0.17	)
Year ended 12/31/2009		9.80		0.24		1.93			2.17		(0.22	)		—			(0.22	)
Legacy Class B Shares
Year ended 12/31/2013		13.88		0.10		1.14			1.24		(0.08	)		(0.59	)		(0.67	)
Year ended 12/31/2012		12.74		0.13		1.15			1.28		(0.12	)		(0.02	)		(0.14	)
Year ended 12/31/2011		12.79		0.16		(0.07	)		0.09		(0.14	)		—			(0.14	)
Year ended 12/31/2010		11.74		0.14		1.03			1.17		(0.12	)		—			(0.12	)
Year ended 12/31/2009		9.79		0.19		1.94			2.13		(0.18	)		—			(0.18	)
Institutional Shares
Year ended 12/31/2013		13.93		0.20		1.15			1.35		(0.20	)		(0.59	)		(0.79	)
Year ended 12/31/2012		12.81		0.23		1.15			1.38		(0.24	)		(0.02	)		(0.26	)
Year ended 12/31/2011		12.88		0.25		(0.08	)		0.17		(0.24	)		—			(0.24	)
Year ended 12/31/2010		11.81		0.22		1.05			1.27		(0.20	)		—			(0.20	)
Year ended 12/31/2009		9.85		0.27		1.94			2.21		(0.25	)		—			(0.25	)
Class R-1 Shares
Year ended 12/31/2013		13.84		0.12		1.14			1.26		(0.12	)		(0.59	)		(0.71	)
Year ended 12/31/2012		12.73		0.15		1.15			1.30		(0.17	)		(0.02	)		(0.19	)
Year ended 12/31/2011		12.81		0.18		(0.09	)		0.09		(0.17	)		—			(0.17	)
Year ended 12/31/2010		11.75		0.14		1.05			1.19		(0.13	)		—			(0.13	)
Year ended 12/31/2009		9.80		0.21		1.94			2.15		(0.20	)		—			(0.20	)
Class R-2 Shares
Year ended 12/31/2013		13.86		0.15		1.13			1.28		(0.15	)		(0.59	)		(0.74	)
Year ended 12/31/2012		12.75		0.18		1.15			1.33		(0.20	)		(0.02	)		(0.22	)
Year ended 12/31/2011		12.82		0.20		(0.07	)		0.13		(0.20	)		—			(0.20	)
Year ended 12/31/2010		11.77		0.18		1.03			1.21		(0.16	)		—			(0.16	)
Year ended 12/31/2009		9.82		0.23		1.94			2.17		(0.22	)		—			(0.22	)
Class R-3 Shares
Year ended 12/31/2013		13.90		0.19		1.15			1.34		(0.19	)		(0.59	)		(0.78	)
Year ended 12/31/2012		12.76		0.22		1.16			1.38		(0.22	)		(0.02	)		(0.24	)
Year ended 12/31/2011		12.83		0.24		(0.08	)		0.16		(0.23	)		—			(0.23	)
Year ended 12/31/2010		11.77		0.21		1.04			1.25		(0.19	)		—			(0.19	)
Year ended 12/31/2009		9.81		0.26		1.95			2.21		(0.25	)		—			(0.25	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net amounts and ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio, indirect proportionate share of the expenses of the Underlying Master Portfolios, and applicable Expense Reduction Agreements described in Note 7; but do not reflect indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, assuming applicable expense reductions, were 0.23% and 1.97%, respectively, for the year ended December 31, 2013.

(c) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(d) The expense ratios include the effect of the expense reduction change described in Note 7 under Expense Reduction Agreements.

(e) Ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio and indirect proportionate share of the expenses of the Underlying Master Portfolios; but do not reflect otherwise applicable Expense Reduction Agreements described in Note 7 or indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, excluding any otherwise applicable expense reductions, were 0.53% and 1.67%, respectively, for the year ended December 31, 2013.

(f) Amount represents the portfolio turnover rate of the Master Portfolio. For 2013, includes the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. For 2012, 2011, 2010 and 2009, excluded the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund and BlackRock Emerging Markets Fund, Inc. If these transactions had been included to conform to the year-end 2013 presentation, portfolio turnover rate would have been 15%, 23%, 13% and 16% for the years ended 2012, 2011, 2010 and 2009, respectively.

218 See accompanying notes to financial statements.

Net asset value, end of period		Total return (c)			Ratios/supplemental data
							Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions
					Net assets, end of period (millions)		Expenses (b) (d)			Net investment income (loss) (b)			Expenses (e)			Net investment income (loss) (e)			Portfolio turnover rate (f)
$	14.45		9.34	%	$	989.9		1.04	%		1.18	%		1.44	%		0.78	%		19	%
	13.91		10.59			727.4		1.11			1.47			1.45			1.13			5
	12.79		1.12			537.2		1.13			1.70			1.45			1.38			5
	12.86		10.40			433.6		1.13			1.56			1.48			1.21			4
	11.81		22.25			297.0		1.13			2.30			1.48			1.95			6
	14.36		8.66			32.8		1.74			0.46			2.15			0.05			19
	13.82		9.75			28.4		1.81			0.75			2.15			0.41			5
	12.72		0.42			24.1		1.83			0.98			2.15			0.66			5
	12.79		9.66			21.9		1.83			0.85			2.18			0.50			4
	11.75		21.31			17.2		1.83			1.59			2.18			1.24			6
	14.40		9.32			434.3		1.04			1.16			1.45			0.75			19
	13.86		10.59			399.0		1.11			1.45			1.45			1.11			5
	12.74		1.09			356.9		1.13			1.68			1.45			1.36			5
	12.81		10.47			358.8		1.13			1.53			1.48			1.18			4
	11.75		22.17			334.4		1.13			2.25			1.48			1.90			6
	14.45		8.90			33.6		1.45			0.71			1.85			0.31			19
	13.88		10.11			46.9		1.52			1.00			1.85			0.67			5
	12.74		0.71			62.5		1.53			1.26			1.85			0.94			5
	12.79		9.96			76.3		1.53			1.12			1.88			0.77			4
	11.74		21.76			74.0		1.53			1.86			1.88			1.51			6
	14.49		9.69			171.4		0.79			1.41			1.20			1.00			19
	13.93		10.80			145.4		0.86			1.70			1.20			1.36			5
	12.81		1.34			125.4		0.88			1.94			1.20			1.62			5
	12.88		10.77			114.3		0.88			1.80			1.23			1.45			4
	11.81		22.47			91.1		0.88			2.53			1.23			2.18			6
	14.39		9.07			17.5		1.36			0.83			1.77			0.42			19
	13.84		10.16			16.4		1.43			1.14			1.77			0.80			5
	12.73		0.77			13.1		1.45			1.35			1.77			1.03			5
	12.81		10.10			12.2		1.45			1.17			1.80			0.82			4
	11.75		21.90			12.3		1.45			1.97			1.80			1.62			6
	14.40		9.21			45.2		1.16			1.03			1.57			0.62			19
	13.86		10.43			40.8		1.23			1.35			1.57			1.01			5
	12.75		0.99			30.4		1.25			1.57			1.57			1.25			5
	12.82		10.31			26.9		1.25			1.45			1.60			1.10			4
	11.77		22.12			16.5		1.25			2.18			1.60			1.83			6
	14.46		9.58			2.9		0.87			1.34			1.27			0.94			19
	13.90		10.77			2.7		0.94			1.59			1.28			1.25			5
	12.76		1.29			2.7		0.95			1.85			1.27			1.53			5
	12.83		10.60			2.9		0.95			1.70			1.30			1.35			4
	11.77		22.48			2.8		0.95			2.45			1.30			2.10			6

See accompanying notes to financial statements. 219

STATE FARM MUTUAL FUND TRUST LIFEPATH 2030 FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations								Less distributions
			Net investment income (loss) (a) (b)		Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income			Net realized gain			Total distributions
Class A Shares
Year ended 12/31/2013	$	14.22	$	0.20	$	1.70		$	1.90		$	(0.21	)	$	(0.64	)	$	(0.85	)
Year ended 12/31/2012		12.82		0.21		1.41			1.62			(0.22	)		—			(0.22	)
Year ended 12/31/2011		13.15		0.20		(0.34	)		(0.14	)		(0.19	)		—			(0.19	)
Year ended 12/31/2010		11.95		0.18		1.19			1.37			(0.17	)		—			(0.17	)
Year ended 12/31/2009		9.70		0.22		2.24			2.46			(0.21	)		—			(0.21	)
Class B Shares
Year ended 12/31/2013		14.16		0.09		1.69			1.78			(0.10	)		(0.64	)		(0.74	)
Year ended 12/31/2012		12.77		0.11		1.40			1.51			(0.12	)		—			(0.12	)
Year ended 12/31/2011		13.10		0.11		(0.34	)		(0.23	)		(0.10	)		—			(0.10	)
Year ended 12/31/2010		11.91		0.09		1.18			1.27			(0.08	)		—			(0.08	)
Year ended 12/31/2009		9.69		0.15		2.21			2.36			(0.14	)		—			(0.14	)
Legacy Class A Shares
Year ended 12/31/2013		14.23		0.20		1.70			1.90			(0.20	)		(0.64	)		(0.84	)
Year ended 12/31/2012		12.83		0.21		1.40			1.61			(0.21	)		—			(0.21	)
Year ended 12/31/2011		13.15		0.20		(0.33	)		(0.13	)		(0.19	)		—			(0.19	)
Year ended 12/31/2010		11.94		0.17		1.20			1.37			(0.16	)		—			(0.16	)
Year ended 12/31/2009		9.69		0.21		2.24			2.45			(0.20	)		—			(0.20	)
Legacy Class B Shares
Year ended 12/31/2013		14.21		0.12		1.72			1.84			(0.11	)		(0.64	)		(0.75	)
Year ended 12/31/2012		12.79		0.15		1.40			1.55			(0.13	)		—			(0.13	)
Year ended 12/31/2011		13.10		0.14		(0.33	)		(0.19	)		(0.12	)		—			(0.12	)
Year ended 12/31/2010		11.89		0.12		1.20			1.32			(0.11	)		—			(0.11	)
Year ended 12/31/2009		9.66		0.17		2.22			2.39			(0.16	)		—			(0.16	)
Institutional Shares
Year ended 12/31/2013		14.29		0.24		1.71			1.95			(0.24	)		(0.64	)		(0.88	)
Year ended 12/31/2012		12.88		0.25		1.41			1.66			(0.25	)		—			(0.25	)
Year ended 12/31/2011		13.21		0.23		(0.34	)		(0.11	)		(0.22	)		—			(0.22	)
Year ended 12/31/2010		11.99		0.21		1.20			1.41			(0.19	)		—			(0.19	)
Year ended 12/31/2009		9.73		0.25		2.24			2.49			(0.23	)		—			(0.23	)
Class R-1 Shares
Year ended 12/31/2013		14.16		0.15		1.69			1.84			(0.16	)		(0.64	)		(0.80	)
Year ended 12/31/2012		12.76		0.16		1.41			1.57			(0.17	)		—			(0.17	)
Year ended 12/31/2011		13.08		0.15		(0.32	)		(0.17	)		(0.15	)		—			(0.15	)
Year ended 12/31/2010		11.88		0.13		1.19			1.32			(0.12	)		—			(0.12	)
Year ended 12/31/2009		9.66		0.19		2.20			2.39			(0.17	)		—			(0.17	)
Class R-2 Shares
Year ended 12/31/2013		14.20		0.17		1.71			1.88			(0.18	)		(0.64	)		(0.82	)
Year ended 12/31/2012		12.81		0.20		1.40			1.60			(0.21	)		—			(0.21	)
Year ended 12/31/2011		13.13		0.19		(0.34	)		(0.15	)		(0.17	)		—			(0.17	)
Year ended 12/31/2010		11.94		0.16		1.18			1.34			(0.15	)		—			(0.15	)
Year ended 12/31/2009		9.69		0.20		2.24			2.44			(0.19	)		—			(0.19	)
Class R-3 Shares
Year ended 12/31/2013		14.29		0.22		1.72			1.94			(0.22	)		(0.64	)		(0.86	)
Year ended 12/31/2012		12.87		0.23		1.42			1.65			(0.23	)		—			(0.23	)
Year ended 12/31/2011		13.19		0.22		(0.33	)		(0.11	)		(0.21	)		—			(0.21	)
Year ended 12/31/2010		11.98		0.20		1.19			1.39			(0.18	)		—			(0.18	)
Year ended 12/31/2009		9.71		0.24		2.25			2.49			(0.22	)		—			(0.22	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net amounts and ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio, indirect proportionate share of the expenses of the Underlying Master Portfolios, and applicable Expense Reduction Agreements described in Note 7; but do not reflect indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, assuming applicable expense reductions, were 0.20% and 2.13%, respectively, for the year ended December 31, 2013.

(c) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(d) The expense ratios include the effect of the expense reduction change described in Note 7 under Expense Reduction Agreements.

(e) Ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio and indirect proportionate share of the expenses of the Underlying Master Portfolios; but do not reflect otherwise applicable Expense Reduction Agreements described in Note 7 or indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, excluding any otherwise applicable expense reductions, were 0.52% and 1.81%, respectively, for the year ended December 31, 2013.

(f) Amount represents the portfolio turnover rate of the Master Portfolio. For 2013, includes the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. For 2012, 2011, 2010 and 2009, excluded the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund and BlackRock Emerging Markets Fund, Inc. If these transactions had been included to conform to the year-end 2013 presentation, portfolio turnover rate would have been 16%, 20%, 10% and 13% for the years ended 2012, 2011, 2010 and 2009, respectively.

220 See accompanying notes to financial statements.

Net asset value, end of period		Total return (c)			Ratios/supplemental data
					Average Net Asset ratios assuming expense reductions								Average Net Asset ratios absent expense reductions
					Net assets, end of period (millions)		Expenses (b)(d)			Net investment income (loss) (b)			Expenses (e)			Net investment income (loss) (e)			Portfolio turnover rate (f)
$	15.27		13.40	%	$	927.4		1.02	%		1.34	%		1.45	%		0.91	%		22	%
	14.22		12.61			657.8		1.10			1.54			1.46			1.18			5
	12.82		(1.04	)		483.8		1.12			1.52			1.45			1.19			7
	13.15		11.42			399.1		1.11			1.45			1.47			1.09			3
	11.95		25.31			263.6		1.11			2.10			1.47			1.74			7
	15.20		12.58			41.8		1.73			0.62			2.16			0.19			22
	14.16		11.84			34.4		1.80			0.83			2.16			0.47			5
	12.77		(1.74	)		28.3		1.82			0.80			2.15			0.47			7
	13.10		10.67			26.1		1.81			0.73			2.17			0.37			3
	11.91		24.33			20.4		1.81			1.40			2.16			1.05			7
	15.29		13.34			341.8		1.03			1.31			1.46			0.88			22
	14.23		12.56			296.6		1.10			1.52			1.46			1.16			5
	12.83		(1.00	)		258.1		1.11			1.50			1.45			1.16			7
	13.15		11.44			260.0		1.11			1.41			1.47			1.05			3
	11.94		25.26			238.7		1.11			2.06			1.47			1.70			7
	15.30		12.91			30.5		1.43			0.82			1.86			0.39			22
	14.21		12.15			41.5		1.50			1.06			1.85			0.71			5
	12.79		(1.44	)		50.6		1.51			1.07			1.85			0.73			7
	13.10		11.06			60.9		1.51			1.00			1.87			0.64			3
	11.89		24.69			58.7		1.51			1.66			1.87			1.30			7
	15.36		13.63			191.9		0.78			1.57			1.21			1.14			22
	14.29		12.86			153.5		0.85			1.78			1.21			1.42			5
	12.88		(0.82	)		125.4		0.87			1.76			1.20			1.43			7
	13.21		11.75			114.6		0.86			1.67			1.22			1.31			3
	11.99		25.55			92.1		0.86			2.34			1.22			1.98			7
	15.20		12.99			24.9		1.34			1.01			1.77			0.58			22
	14.16		12.32			19.8		1.42			1.19			1.78			0.83			5
	12.76		(1.32	)		16.3		1.43			1.16			1.77			0.82			7
	13.08		11.09			15.9		1.43			1.07			1.79			0.71			3
	11.88		24.77			13.9		1.43			1.77			1.79			1.41			7
	15.26		13.23			41.7		1.15			1.15			1.58			0.72			22
	14.20		12.45			40.4		1.22			1.43			1.58			1.07			5
	12.81		(1.11	)		26.3		1.24			1.41			1.57			1.08			7
	13.13		11.32			23.9		1.23			1.34			1.59			0.98			3
	11.94		25.09			14.8		1.23			1.96			1.59			1.60			7
	15.37		13.56			3.7		0.85			1.47			1.28			1.04			22
	14.29		12.85			3.5		0.92			1.69			1.28			1.33			5
	12.87		(0.85	)		2.9		0.93			1.66			1.27			1.32			7
	13.19		11.60			3.1		0.93			1.62			1.29			1.26			3
	11.98		25.67			2.2		0.93			2.30			1.29			1.94			7

See accompanying notes to financial statements. 221

STATE FARM MUTUAL FUND TRUST LIFEPATH 2040 FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations								Less distributions
			Net investment income (loss) (a) (b)		Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income			Net realized gain			Total distributions
Class A Shares
Year ended 12/31/2013	$	14.46	$	0.23	$	2.18		$	2.41		$	(0.23	)	$	(0.65	)	$	(0.88	)
Year ended 12/31/2012		12.85		0.22		1.62			1.84			(0.23	)		—			(0.23	)
Year ended 12/31/2011		13.41		0.18		(0.56	)		(0.38	)		(0.18	)		—			(0.18	)
Year ended 12/31/2010		12.08		0.16		1.32			1.48			(0.15	)		—			(0.15	)
Year ended 12/31/2009		9.62		0.20		2.45			2.65			(0.19	)		—			(0.19	)
Class B Shares
Year ended 12/31/2013		14.40		0.11		2.16			2.27			(0.12	)		(0.65	)		(0.77	)
Year ended 12/31/2012		12.80		0.12		1.61			1.73			(0.13	)		—			(0.13	)
Year ended 12/31/2011		13.35		0.09		(0.55	)		(0.46	)		(0.09	)		—			(0.09	)
Year ended 12/31/2010		12.04		0.07		1.31			1.38			(0.07	)		—			(0.07	)
Year ended 12/31/2009		9.60		0.13		2.43			2.56			(0.12	)		—			(0.12	)
Legacy Class A Shares
Year ended 12/31/2013		14.50		0.22		2.18			2.40			(0.22	)		(0.65	)		(0.87	)
Year ended 12/31/2012		12.88		0.22		1.62			1.84			(0.22	)		—			(0.22	)
Year ended 12/31/2011		13.42		0.18		(0.55	)		(0.37	)		(0.17	)		—			(0.17	)
Year ended 12/31/2010		12.09		0.16		1.32			1.48			(0.15	)		—			(0.15	)
Year ended 12/31/2009		9.62		0.19		2.46			2.65			(0.18	)		—			(0.18	)
Legacy Class B Shares
Year ended 12/31/2013		14.50		0.14		2.20			2.34			(0.14	)		(0.65	)		(0.79	)
Year ended 12/31/2012		12.87		0.16		1.62			1.78			(0.15	)		—			(0.15	)
Year ended 12/31/2011		13.40		0.12		(0.54	)		(0.42	)		(0.11	)		—			(0.11	)
Year ended 12/31/2010		12.07		0.11		1.32			1.43			(0.10	)		—			(0.10	)
Year ended 12/31/2009		9.61		0.15		2.45			2.60			(0.14	)		—			(0.14	)
Institutional Shares
Year ended 12/31/2013		14.56		0.27		2.19			2.46			(0.26	)		(0.65	)		(0.91	)
Year ended 12/31/2012		12.93		0.26		1.63			1.89			(0.26	)		—			(0.26	)
Year ended 12/31/2011		13.48		0.22		(0.56	)		(0.34	)		(0.21	)		—			(0.21	)
Year ended 12/31/2010		12.15		0.19		1.32			1.51			(0.18	)		—			(0.18	)
Year ended 12/31/2009		9.66		0.23		2.47			2.70			(0.21	)		—			(0.21	)
Class R-1 Shares
Year ended 12/31/2013		14.41		0.17		2.17			2.34			(0.18	)		(0.65	)		(0.83	)
Year ended 12/31/2012		12.80		0.17		1.62			1.79			(0.18	)		—			(0.18	)
Year ended 12/31/2011		13.34		0.13		(0.54	)		(0.41	)		(0.13	)		—			(0.13	)
Year ended 12/31/2010		12.02		0.12		1.31			1.43			(0.11	)		—			(0.11	)
Year ended 12/31/2009		9.59		0.16		2.42			2.58			(0.15	)		—			(0.15	)
Class R-2 Shares
Year ended 12/31/2013		14.46		0.20		2.18			2.38			(0.20	)		(0.65	)		(0.85	)
Year ended 12/31/2012		12.85		0.21		1.61			1.82			(0.21	)		—			(0.21	)
Year ended 12/31/2011		13.40		0.17		(0.56	)		(0.39	)		(0.16	)		—			(0.16	)
Year ended 12/31/2010		12.08		0.15		1.31			1.46			(0.14	)		—			(0.14	)
Year ended 12/31/2009		9.62		0.19		2.45			2.64			(0.18	)		—			(0.18	)
Class R-3 Shares
Year ended 12/31/2013		14.70		0.25		2.21			2.46			(0.25	)		(0.65	)		(0.90	)
Year ended 12/31/2012		13.05		0.24		1.65			1.89			(0.24	)		—			(0.24	)
Year ended 12/31/2011		13.60		0.21		(0.56	)		(0.35	)		(0.20	)		—			(0.20	)
Year ended 12/31/2010		12.25		0.19		1.33			1.52			(0.17	)		—			(0.17	)
Year ended 12/31/2009		9.64		0.23		2.58			2.81			(0.20	)		—			(0.20	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net amounts and ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio, indirect proportionate share of the expenses of the Underlying Master Portfolios, and applicable Expense Reduction Agreements described in Note 7; but do not reflect indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, assuming applicable expense reductions, were 0.18% and 2.26%, respectively, for the year ended December 31, 2013.

(c) Total return does not reflect the effect of sales charge for Class A, Class B, Legacy Class A and Legacy Class B shares. All other classes do not have a sales charge.

(d) The expense ratios include the effect of the expense reduction change described in Note 7 under Expense Reduction Agreements.

(e) Ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio and indirect proportionate share of the expenses of the Underlying Master Portfolios; but do not reflect otherwise applicable Expense Reduction Agreements described in Note 7 or indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, excluding any otherwise applicable expense reductions, were 0.51% and 1.93%, respectively, for the year ended December 31, 2013.

(f) Amount represents the portfolio turnover rate of the Master Portfolio. For 2013, includes the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. For 2012, 2011, 2010 and 2009, excluded the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund and BlackRock Emerging Markets Fund, Inc. If these transactions had been included to conform to the year-end 2013 presentation, portfolio turnover rate would have been 14%, 20%, 9% and 9% for the years ended 2012, 2011, 2010 and 2009, respectively.

222 See accompanying notes to financial statements.

Net asset value, end of period		Total return (c)			Ratios/supplemental data
					Net assets, end of period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions						Portfolio turnover rate (f)
							Expenses (b) (d)			Net investment income (loss)  (b)			Expenses (e)			Net investment income (loss)  (e)
$	15.99		16.65	%	$	579.2		1.01	%		1.47	%		1.46	%		1.02	%		26	%
	14.46		14.29			407.1		1.09			1.60			1.47			1.22			4
	12.85		(2.85	)		297.6		1.10			1.36			1.46			1.00			8
	13.41		12.28			257.8		1.11			1.34			1.48			0.97			4
	12.08		27.49			180.5		1.11			1.92			1.47			1.56			6
	15.90		15.75			41.7		1.72			0.73			2.17			0.28			26
	14.40		13.52			34.0		1.79			0.88			2.17			0.50			4
	12.80		(3.47	)		27.6		1.80			0.65			2.16			0.29			8
	13.35		11.47			26.1		1.81			0.61			2.18			0.24			4
	12.04		26.66			20.7		1.81			1.22			2.17			0.86			6
	16.03		16.56			249.1		1.02			1.43			1.47			0.98			26
	14.50		14.29			210.0		1.09			1.57			1.47			1.19			4
	12.88		(2.81	)		182.2		1.10			1.34			1.46			0.98			8
	13.42		12.30			188.0		1.11			1.29			1.48			0.92			4
	12.09		27.55			170.8		1.11			1.88			1.48			1.51			6
	16.05		16.09			28.1		1.42			0.93			1.87			0.48			26
	14.50		13.81			33.8		1.49			1.12			1.87			0.74			4
	12.87		(3.15	)		38.5		1.50			0.92			1.86			0.56			8
	13.40		11.81			45.9		1.51			0.88			1.88			0.51			4
	12.07		27.03			43.8		1.51			1.47			1.88			1.10			6
	16.11		16.90			221.4		0.77			1.69			1.22			1.24			26
	14.56		14.59			170.7		0.84			1.84			1.22			1.46			4
	12.93		(2.55	)		136.2		0.85			1.60			1.21			1.24			8
	13.48		12.43			128.4		0.86			1.57			1.23			1.20			4
	12.15		27.92			98.9		0.86			2.17			1.22			1.81			6
	15.92		16.27			18.4		1.34			1.11			1.79			0.66			26
	14.41		13.92			15.3		1.41			1.26			1.79			0.88			4
	12.80		(3.08	)		12.3		1.42			1.00			1.78			0.64			8
	13.34		11.89			12.6		1.43			0.94			1.80			0.57			4
	12.02		26.90			11.7		1.43			1.57			1.79			1.21			6
	15.99		16.48			33.9		1.14			1.28			1.58			0.84			26
	14.46		14.15			30.7		1.21			1.47			1.59			1.09			4
	12.85		(2.91	)		22.9		1.22			1.25			1.58			0.89			8
	13.40		12.08			20.7		1.23			1.23			1.60			0.86			4
	12.08		27.43			13.5		1.23			1.84			1.59			1.48			6
	16.26		16.71			3.5		0.84			1.61			1.29			1.16			26
	14.70		14.50			3.0		0.91			1.73			1.29			1.35			4
	13.05		(2.60	)		2.4		0.92			1.51			1.28			1.15			8
	13.60		12.41			2.3		0.93			1.50			1.30			1.13			4
	12.25		29.18			1.9		0.92			2.14			1.29			1.77			6

See accompanying notes to financial statements. 223

STATE FARM MUTUAL FUND TRUST LIFEPATH 2050 FUND

(For a share outstanding throughout each period)

	Net asset value, beginning of period		Income from investment operations								Less distributions
			Net investment income (loss) (a) (b)		Net gain (loss) on investments (both realized and unrealized)			Total from investment operations			Net investment income			Net realized gain			Total distributions
Class A Shares
Year ended 12/31/2013	$	9.63	$	0.17	$	1.69		$	1.86		$	(0.15	)	$	(0.55	)	$	(0.70	)
Year ended 12/31/2012		8.60		0.15		1.19			1.34			(0.14	)		(0.17	)		(0.31	)
Year ended 12/31/2011		9.39		0.11		(0.51	)		(0.40	)		(0.09	)		(0.30	)		(0.39	)
Year ended 12/31/2010		8.62		0.12		1.00			1.12			(0.08	)		(0.27	)		(0.35	)
Year ended 12/31/2009		6.88		0.14		1.94			2.08			(0.11	)		(0.23	)		(0.34	)
Class R-1 Shares
Year ended 12/31/2013		9.66		0.13		1.70			1.83			(0.11	)		(0.55	)		(0.66	)
Year ended 12/31/2012		8.62		0.12		1.20			1.32			(0.11	)		(0.17	)		(0.28	)
Year ended 12/31/2011		9.42		0.08		(0.51	)		(0.43	)		(0.07	)		(0.30	)		(0.37	)
Year ended 12/31/2010		8.64		0.08		1.02			1.10			(0.05	)		(0.27	)		(0.32	)
Year ended 12/31/2009		6.90		0.11		1.95			2.06			(0.09	)		(0.23	)		(0.32	)
Class R-2 Shares
Year ended 12/31/2013		9.66		0.14		1.71			1.85			(0.12	)		(0.55	)		(0.67	)
Year ended 12/31/2012		8.63		0.14		1.19			1.33			(0.13	)		(0.17	)		(0.30	)
Year ended 12/31/2011		9.42		0.11		(0.51	)		(0.40	)		(0.09	)		(0.30	)		(0.39	)
Year ended 12/31/2010		8.65		0.10		1.01			1.11			(0.07	)		(0.27	)		(0.34	)
Year ended 12/31/2009		6.90		0.12		1.96			2.08			(0.10	)		(0.23	)		(0.33	)

(a) Average shares outstanding for the period were used to calculate net investment income per share.

(b) Net amounts and ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio, indirect proportionate share of the expenses of the Underlying Master Portfolios, and applicable Expense Reduction Agreements described in Note 7; but do not reflect indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, assuming applicable expense reductions, were 0.20% and 2.46%, respectively, for the year ended December 31, 2013.

(c) Total return does not reflect the effect of sales charge for Class A shares. All other classes do not have a sales charge.

(d) The expense ratios include the effect of the expense reduction change described in Note 7 under Expense Reduction Agreements.

(e) Ratios reflect the Fund’s proportionate share of income and expenses of the Master Portfolio and indirect proportionate share of the expenses of the Underlying Master Portfolios; but do not reflect otherwise applicable Expense Reduction Agreements described in Note 7 or indirect proportionate share of the expenses of the BlackRock Cash Funds, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. Expense and income ratios for the Master Portfolio, excluding any otherwise applicable expense reductions, were 0.53% and 2.13%, respectively, for the year ended December 31, 2013.

(f) Amount represents the portfolio turnover rate of the Master Portfolio. For 2013, includes the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds. For 2012, 2011, 2010 and 2009, excluded the purchases and sales of the Underlying Master Portfolios, BlackRock Commodity Strategies Fund and BlackRock Emerging Markets Fund, Inc. If these transactions had been included to conform to the year-end 2013 presentation, portfolio turnover rate would have been 15%, 19%, 12% and 17% for the years ended 2012, 2011, 2010 and 2009, respectively.

224 See accompanying notes to financial statements.

Net asset value, end of period		Total return (c)			Ratios/supplemental data
					Net assets, end of period (millions)		Average Net Asset ratios assuming expense reductions						Average Net Asset ratios absent expense reductions						Portfolio turnover rate (f)
							Expenses (b) (d)			Net investment income (loss)  (b)			Expenses (e)			Net investment income (loss)  (e)
$	10.79		19.34	%	$	170.7		1.08	%		1.60	%		1.56	%		1.12	%		28	%
	9.63		15.54			104.3		1.14			1.61			1.60			1.15			5
	8.60		(4.25	)		62.2		1.13			1.23			1.63			0.73			13
	9.39		12.98			42.6		1.12			1.32			1.76			0.68			5
	8.62		30.25			20.8		1.11			1.87			2.04			0.94			12
	10.83		19.02			4.6		1.40			1.26			1.88			0.78			28
	9.66		15.29			3.5		1.46			1.27			1.92			0.81			5
	8.62		(4.61	)		2.5		1.45			0.89			1.95			0.39			13
	9.42		12.69			1.8		1.44			0.90			2.08			0.26			5
	8.64		29.76			1.3		1.43			1.42			2.37			0.48			12
	10.84		19.21			7.5		1.21			1.32			1.68			0.85			28
	9.66		15.37			4.9		1.26			1.52			1.72			1.06			5
	8.63		(4.26	)		2.9		1.26			1.15			1.74			0.67			13
	9.42		12.79			1.7		1.24			1.14			1.89			0.49			5
	8.65		30.08			1.0		1.23			1.65			2.18			0.70			12

See accompanying notes to financial statements. 225

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To The Board of Trustees and Shareholders of the State Farm Mutual Fund Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments (except for the State Farm LifePath Retirement Fund, State Farm LifePath 2020 Fund, State Farm LifePath 2030 Fund, State Farm LifePath 2040 Fund and State Farm LifePath 2050 Fund for which the schedules of investments are not included), and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of State Farm Equity Fund, State Farm Small/Mid Cap Equity Fund, State Farm International Equity Fund, State Farm S&P 500 Index Fund, State Farm Small Cap Index Fund, State Farm International Index Fund, State Farm Equity & Bond Fund, State Farm Bond Fund, State Farm Tax Advantaged Bond Fund, State Farm Money Market Fund, State Farm LifePath Retirement Fund, State Farm LifePath 2020 Fund, State Farm LifePath 2030 Fund, State Farm LifePath 2040 Fund and State Farm LifePath 2050 Fund, fifteen funds comprising the State Farm Mutual Fund Trust (the “Funds”) at December 31, 2013, the results of each of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights of the Funds for the periods ended December 31, 2010 and prior were audited by another independent registered public accounting firm whose report dated February 28, 2011 expressed an unqualified opinion on those financial highlights.

PricewaterhouseCoopers LLP

Chicago, Illinois

February 28, 2014

226

FEDERAL INCOME TAX INFORMATION (unaudited)

The following information is provided as required by the Internal Revenue Code for dividends paid by each Fund during the year ended December 31, 2013.

Fund	Total Capital Gain Distributed		Total Qualified Dividend Income Distributed		Total Distributions Qualifying for the Dividends-Received Deduction		Total Foreign Taxes Paid		Total Foreign Source Income		Total Exempt Interest  Distributed
Equity Fund	$	—	$	2,194,976	$	2,194,976	$	—	$	—	$	—
Small Mid/Cap Equity Fund		26,033,142		589,451		589,451		—		—		—
International Equity Fund		—		1,456,368		—		266,648		2,932,633		—
S&P 500 Index Fund		—		9,936,267		9,936,267		—		—		—
Small Cap Index Fund		18,518,902		2,917,895		2,917,895		—		—		—
International Index Fund		—		4,229,306		69		492,610		7,412,281		—
Equity and Bond Fund		—		1,073,117		1,073,117		—		—		—
Bond Fund		5,059,427		—		—		—		—		—
Tax Advantaged Bond Fund		—		—		—		—		—		14,623,258
Money Market Fund		—		—		—		—		—		—
LifePath Retirement Fund		26,510,344		5,716,996		3,382,380		—		—		—
LifePath 2020 Fund		49,390,738		12,594,110		7,068,905		—		—		—
LifePath 2030 Fund		49,624,351		15,011,374		8,112,414		—		—		—
LifePath 2040 Fund		39,664,550		12,978,478		6,921,573		—		—		—
LifePath 2050 Fund		6,000,400		2,161,791		1,110,346		—		—		—

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Funds. Individual shareholders should refer to their Form 1099 to determine the amounts to be included on their federal income tax return.

227

Management Information – State Farm Mutual Fund Trust, December 31, 2013 (unaudited)

I. Information about Non-Interested (Independent) Trustees of State Farm Mutual Fund Trust

Name, Address, and Age	Position(s) Held with Fund	Length of Time Served and Term of Office	Principal Occupation(s) During the Past 5 years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years
Thomas M. Mengler One State Farm Plaza Bloomington, Illinois 61710 Age 60	Trustee	Began service in 2000 and serves until successor is elected or appointed.	PRESIDENT – St. Mary’s University (since 6/2012); DEAN and PROFESSOR OF LAW – University of St. Thomas School of Law (before 6/2012); TRUSTEE – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	None
James A. Shirk One State Farm Plaza Bloomington, Illinois 61710 Age 69	Trustee	Began service in 2000 and serves until successor is elected or appointed.	DIRECTOR and PRESIDENT – Beer Nuts, Inc. (manufacturer of snack foods); PRESIDENT/OWNER – Tiehack Development Company (land developer); TRUSTEE – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	None
Victor J. Boschini One State Farm Plaza Bloomington, Illinois 61710 Age 57	Trustee	Began service in 2000 and serves until successor is elected or appointed.	CHANCELLOR – Texas Christian University; TRUSTEE – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	None
David L. Vance One State Farm Plaza Bloomington, Illinois 61710 Age 61	Trustee	Began service in 2000 and serves until successor is elected or appointed.	EXECUTIVE DIRECTOR (since 8/2012) – Center for Talent Reporting, Inc. (nonprofit dedicated to improving the management of human capital); PRESIDENT/OWNER (since 7/2010) – Poudre River Press LLC (book publisher); CONSULTANT/ PRESIDENT/OWNER – Manage Learning LLC (consults with organizations on learning strategy, governance, measurement, and evaluation); ADJUNCT FACULTY (since 2/2010) – Bellevue University and University of Southern Mississippi; TRUSTEE – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	None
Alan R. Latshaw One State Farm Plaza Bloomington, Illinois 61710 Age 62	Trustee	Began service in 2005 and serves until successor is elected or appointed.	RETIRED; TRUSTEE – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	TRUSTEE – MainStay Funds (79 portfolios)
Anita M. Nagler One State Farm Plaza Bloomington, Illinois 61710 Age 57	Trustee	Began service in 2006 and serves until successor is elected or appointed.	DIRECTOR – Baron Capital Group, Inc. (investment adviser and distributor of mutual funds); PRIVATE INVESTOR; TRUSTEE – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	None
Diane L. Wallace One State Farm Plaza Bloomington, IL 61710 Age 55	Trustee	Began service in 2013 and serves until successor is elected or appointed.	RETIRED; TRUSTEE – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	None

228

Management Information – State Farm Mutual Fund Trust, December 31, 2013 (unaudited)

II. Information about Interested Trustees/Officers of State Farm Mutual Fund Trust

Name, Address, and Age	Position(s) Held with Fund	Length of Time Served and Term of Office	Principal Occupation(s) During the Past 5 years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Directorships Held by Trustee During the Past 5 Years
Edward B. Rust, Jr.* One State Farm Plaza Bloomington, Illinois 61710 Age 63	Trustee and Chairperson of the Board	Began service as Trustee in 2000 and serves until successor is elected or appointed. Began service as Chairperson of the Board in 2012 and serves until removed.	CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE OFFICER, PRESIDENT and DIRECTOR – State Farm Mutual Automobile Insurance Company; PRESIDENT and DIRECTOR – State Farm VP Management Corp., State Farm Investment Management Corp.; TRUSTEE, PRESIDENT (before 12/2012) and CHAIRPERSON OF THE BOARD (since 12/2012) – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	DIRECTOR – McGraw–Hill Financial (financial ratings/ information); DIRECTOR – Caterpillar, Inc. (manufacturer of heavy equipment and earth–moving machinery); DIRECTOR – Helmerich & Payne, Inc. (energy exploration and production company)
Michael L. Tipsord* One State Farm Plaza Bloomington, Illinois 61710 Age 54	Trustee and President	Began service as Trustee in 2002 and serves until successor is elected or appointed. Began service as President in 2012 and serves until removed.	VICE CHAIRMAN and CHIEF OPERATING OFFICER (since 12/2010), CHIEF FINANCIAL OFFICER (before 12/2010) and DIRECTOR – State Farm Mutual Automobile Insurance Company; DIRECTOR, SENIOR VICE PRESIDENT and TREASURER – State Farm Investment Management Corp., State Farm VP Management Corp.; TRUSTEE, SENIOR VICE PRESIDENT and TREASURER (before 12/2012) and PRESIDENT (since 12/2012) – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.	28	DIRECTOR – Navigant Consulting, Inc. (international consulting firm)

* Messrs. Rust and Tipsord are “interested” Trustees as defined by the Investment Company Act of 1940 because of their respective positions with State Farm Mutual Fund Trust, State Farm VP Management Corp., State Farm Investment Management Corp. and with the affiliates of these companies.

229

Management Information – State Farm Mutual Fund Trust, December 31, 2013 (unaudited)

III. Information about Officers of State Farm Mutual Fund Trust

Name, Address, and Age	Position(s) Held with Fund	Length of Time Served and Term of Office	Principal Occupation(s) During the Past 5 years
Paul J. Smith One State Farm Plaza Bloomington, Illinois 61710 Age 50	Senior Vice President and Treasurer	Began service in June 2011 as Senior Vice President and in December 2012 as Treasurer and serves until removed.	CHIEF FINANCIAL OFFICER (since 12/2010), TREASURER (since 6/2009), SENIOR VICE PRESIDENT (3/2007 – 1/2013) and EXECUTIVE VICE PRESIDENT (since 1/2013) – State Farm Mutual Automobile Insurance Company; DIRECTOR (since 3/2011) and SENIOR VICE PRESIDENT (since 12/2009) – State Farm Investment Management Corp., State Farm VP Management Corp.; SENIOR VICE PRESIDENT (since 6/2011) and TREASURER (since 12/2012) – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.
Joe R. Monk Jr. One State Farm Plaza Bloomington, IL 61710 Age 50	Senior Vice President	Began service in March 2011 and serves until removed.	SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER (since 4/2010) and OPERATIONS VICE PRESIDENT (6/2008 – 4/2010) – State Farm Life Insurance Company; SENIOR VICE PRESIDENT – MUTUAL FUNDS (SINCE 1/2011), VICE PRESIDENT – HEALTH (since 4/2010) and OPERATIONS VICE PRESIDENT – HEALTH (6/2008 – 4/2010) – State Farm Mutual Automobile Insurance Company; DIRECTOR and SENIOR VICE PRESIDENT (since 7/2010) – State Farm Investment Management Corp., State Farm VP Management Corp.; SENIOR VICE PRESIDENT (since 3/2011) – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.
Mark D. Mikel Three State Farm Plaza Bloomington, Illinois 61791 Age 43	Vice President and Secretary	Began service in December 2012 and serves until removed.	ASSISTANT VICE PRESIDENT – MUTUAL FUNDS (since 12/2012) and MUTUAL FUNDS DIRECTOR (before 12/2012) – State Farm Mutual Automobile Insurance Company; ASSISTANT SECRETARY – TREASURER – State Farm Investment Management Corp., State Farm VP Management Corp.; VICE PRESIDENT AND SECRETARY (since 12/2012) – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.
David R. Grizzle Three State Farm Plaza Bloomington, Illinois 61791 Age 54	Chief Compliance Officer and Assistant Secretary– Treasurer	Began service as Assistant Secretary– Treasurer in 2001 and as Chief Compliance Officer in 2006 and serves until removed.	CHIEF COMPLIANCE OFFICER and ASSISTANT SECRETARY – TREASURER – State Farm Variable Product Trust, State Farm Associates’ Funds Trust, State Farm Investment Management Corp.; DIRECTOR – MUTUAL FUNDS – State Farm Mutual Automobile Insurance Company; ASSISTANT SECRETARY – TREASURER – State Farm VP Management Corp.
Joseph P. Young One State Farm Plaza Bloomington, IL 61710 Age 50	Vice President	Began service in December 2011 and serves until removed.	VICE PRESIDENT – FIXED INCOME (since 12/2011), ASSISTANT VICE PRESIDENT – FIXED INCOME (6/2011 – 12/2011) – State Farm Mutual Automobile Insurance Company; VICE PRESIDENT – FIXED INCOME (3/1998 – 5/2011) – Nationwide Insurance; VICE PRESIDENT (since 3/2012) – State Farm Investment Management Corp.; VICE PRESIDENT (since 12/2011) – State Farm Variable Product Trust, State Farm Associates’ Funds Trust.
Dick Paul One State Farm Plaza Bloomington, IL 61710 Age 54	Vice President	Began service in March 2012 and serves until removed.	VICE PRESIDENT – LIFE/HEALTH/MUTUAL FUNDS (since 1/2012), OPERATIONS VICE PRESIDENT – LIFE/HEALTH (5/2009 – 2/2012), EXECUTIVE ASSISTANT (1/2009 – 5/2009) and ASSISTANT VICE PRESIDENT – MUTUAL FUNDS (8/2005 – 1/2009) – State Farm Mutual Automobile Insurance Company; VICE PRESIDENT (since 3/2012) – State Farm Investment Management Corp., State Farm VP Management Corp., State Farm Variable Product Trust and State Farm Associates’ Funds Trust.

The Trust’s Statement of Additional Information (“SAI”) includes additional information about the Trustees of the Trust, and the SAI is available without charge upon request. Call toll-free 1-800-447-4930 to request a copy of the SAI.

230

MASTER INVESTMENT PORTFOLIO

MASTER PORTFOLIO INFORMATION

as of December 31, 2013

LifePath^® Retirement Master Portfolio

Portfolio Composition	Percent of Affiliated Investment Companies
Fixed Income Funds		61	%
Equity Funds		37
Short-Term Securities		2

Ten Largest Holdings	Percent of Affiliated Investment Companies
CoreAlpha Bond Master Portfolio		51	%
Active Stock Master Portfolio		19
iShares Barclays TIPS Bond ETF		9
Master Small Cap Index Series		5
BlackRock Commodity Strategies Fund		4
International Tilts Master Portfolio		3
iShares MSCI EAFE ETF		2
BlackRock Cash Funds: Institutional, SL Agency Shares		2
ACWI ex-US Index Master Portfolio		1
iShares MSCI EAFE Small-Cap ETF		1

LifePath 2020 Master Portfolio^®

Portfolio Composition	Percent of Affiliated Investment Companies
Equity Funds		50	%
Fixed Income Funds		48
Short-Term Securities		2

Ten Largest Holdings	Percent of Affiliated Investment Companies
CoreAlpha Bond Master Portfolio		41	%
Active Stock Master Portfolio		26
iShares Barclays TIPS Bond ETF		7
International Tilts Master Portfolio		5
Master Small Cap Index Series		4
iShares MSCI EAFE ETF		4
BlackRock Commodity Strategies Fund		4
BlackRock Cash Funds: Institutional, SL Agency Shares		1
BlackRock Emerging Markets Fund, Inc.		1
iShares MSCI EAFE Small-Cap ETF		1

LifePath 2030 Master Portfolio^®

Portfolio Composition	Percent of Affiliated Investment Companies
Equity Funds		65	%
Fixed Income Funds		32
Short-Term Securities		3

Ten Largest Holdings	Percent of Affiliated Investment Companies
Active Stock Master Portfolio		33	%
CoreAlpha Bond Master Portfolio		29
International Tilts Master Portfolio		6
iShares MSCI EAFE ETF		5
BlackRock Commodity Strategies Fund		4
iShares Barclays TIPS Bond ETF		3
Master Small Cap Index Series		3
iShares International Developed Real Estate ETF		3
iShares Cohen & Steers Realty Majors ETF		3
BlackRock Cash Funds: Institutional, SL Agency Shares		2

The Master Portfolios’ allocation and holdings listed above are current as of the report date. However, the Master Portfolios are regularly monitored and their composition may vary throughout various periods.

231

MASTER INVESTMENT PORTFOLIO

MASTER PORTFOLIO INFORMATION (Concluded)

as of December 31, 2013

LifePath 2040 Master Portfolio^®

Portfolio Composition	Percent of Affiliated Investment Companies
Equity Funds		78	%
Fixed Income Funds		20
Short-Term Securities		2

Ten Largest Holdings	Percent of Affiliated Investment Companies
Active Stock Master Portfolio		38	%
CoreAlpha Bond Master Portfolio		19
International Tilts Master Portfolio		7
iShares MSCI EAFE ETF		6
iShares Cohen & Steers REIT ETF		4
BlackRock Commodity Strategies Fund		4
iShares International Developed Real Estate ETF		4
Russell 1000® Index Master Portfolio		3
Master Small Cap Index Series		3
BlackRock Emerging Markets Fund, Inc.		2

LifePath^® 2050 Master Portfolio

Portfolio Composition	Percent of Affiliated Investment Companies
Equity Funds		89	%
Fixed Income Funds		9
Short-Term Securities		2

Ten Largest Holdings	Percent of Affiliated Investment Companies
Active Stock Master Portfolio .		42	%
CoreAlpha Bond Master Portfolio		10
International Tilts Master Portfolio		9
ACWI ex-US Index Master Portfolio		7
iShares International Developed Real Estate ETF		5
Russell 1000® Index Master Portfolio		5
iShares Cohen & Steers REIT ETF		5
BlackRock Commodity Strategies Fund		4
iShares MSCI EAFE ETF		4
BlackRock Emerging Markets Fund, Inc.		3

The Master Portfolios’ allocation and holdings listed above are current as of the report date. However, the Master Portfolios are regularly monitored and their composition may vary throughout various periods.

232

LIFEPATH RETIREMENT MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS

December 31, 2013

(Percentages shown are based on Net Assets)

Affiliated Investment Companies (a)	Shares/Beneficial Interest		Value
Equity Funds — 38.2%
Active Stock Master Portfolio	$	301,116,371	$	301,116,371
ACWI ex-US Index Master Portfolio	$	21,332,804		21,332,804
BlackRock Commodity Strategies Fund		6,117,587		57,688,841
BlackRock Emerging Markets Fund, Inc.		779,979		15,544,975
International Tilts Master Portfolio	$	52,994,384		52,994,384
iShares MSCI Canada ETF (b)		300,512		8,762,930
iShares MSCI EAFE ETF (b)		515,589		34,575,398
iShares MSCI EAFE Small-Cap ETF		316,636		16,142,103
iShares MSCI Emerging Markets ETF (b)		282,562		11,802,615
Master Small Cap Index Series	$	74,174,910		74,174,910
Russell 1000® Index Master Portfolio	$	11,344,510		11,344,510
				605,479,841
Fixed Income Funds — 61.7%
CoreAlpha Bond Master Portfolio	$	829,309,521		829,309,521
iShares TIPS Bond ETF		1,368,622		150,411,558
				979,721,079

Affiliated Investment Companies (a)	Shares		Value
Short-Term Securities — 1.8%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.14% (c)(d)		24,241,785	$	24,241,785
BlackRock Cash Funds: Prime, SL Agency Shares, 0.11% (c)(d)		3,861,905		3,861,905
				28,103,690
Total Affiliated Investment Companies (Cost — $1,502,232,523*) — 101.7%				1,613,304,610
Liabilities in Excess of Other Assets — (1.7)%				(26,896,602	)
Net Assets — 100.0%			$	1,586,408,008

* As of December 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	1,503,768,175
Gross unrealized appreciation	$	142,118,819
Gross unrealized depreciation		(32,582,384	)
Net unrealized appreciation	$	109,536,435

(a) Investments in issuers considered to be an affiliate of the Master Portfolio during the period ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Beneficial Interest Held at December  31, 2012		Shares/ Beneficial Interest Purchased		Shares/ Beneficial Interest Sold			Shares/ Beneficial Interest Held at December  31, 2013		Value at December 31, 2013		Income		Realized Gain (Loss)
Active Stock Master Portfolio	$	298,793,488	$	2,322,8831		—		$	301,116,371	$	301,116,371	$	5,546,517	$	53,766,379
ACWI ex-US Index Master Portfolio	$	27,699,413		—	$	(6,366,609	)2	$	21,332,804	$	21,332,804	$	1,029,373	$	2,491,349
BlackRock Cash Funds: Institutional, SL Agency Shares		7,529,155		16,712,6301		—			24,241,785	$	24,241,785	$	68,443		—
BlackRock Cash Funds: Prime, SL Agency Shares		1,254,994		2,606,9111		—			3,861,905	$	3,861,905	$	10,230
BlackRock Commodity Strategies Fund		5,285,130		885,767		(53,310	)		6,117,587	$	57,688,841		—	$	(63,404	)
BlackRock Emerging Markets Fund, Inc.		—		779,979		—			779,979	$	15,544,975	$	56,458		—
CoreAlpha Bond Master Portfolio	$	778,624,808	$	50,684,7131		—		$	829,309,521	$	829,309,521	$	20,465,555	$	521,250
International Tilts Master Portfolio		—	$	52,994,3841		—		$	52,994,384	$	52,994,384	$	12,536	$	(72,493	)
iShares Cohen & Steers REIT ETF		28,264		87		(28,351	)		—		—	$	33,336	$	657,026
iShares International Developed Real Estate ETF		91,497		489		(91,986	)		—		—	$	38,010	$	442,197
iShares MSCI Canada ETF		350,676		1,919		(52,083	)		300,512	$	8,762,930	$	216,932	$	(86,491	)
iShares MSCI EAFE ETF		1,310,595		—		(795,006	)		515,589	$	34,575,398	$	1,785,443	$	14,117,926
iShares MSCI EAFE Small-Cap ETF		344,187		7,146		(34,697	)		316,636	$	16,142,103	$	396,193	$	115,153
iShares MSCI Emerging Markets ETF		662,040		—		(379,478	)		282,562	$	11,802,615	$	451,482	$	1,386,222
iShares TIPS Bond ETF		1,074,113		330,977		(36,468	)		1,368,622	$	150,411,558	$	1,526,625	$	(224,164	)
Master Small Cap Index Series	$	64,132,281	$	10,042,6291		—		$	74,174,910	$	74,174,910	$	1,066,320	$	3,823,210
Russell 1000® Index Master Portfolio		—	$	11,344,5101		—		$	11,344,510	$	11,344,510	$	69,545	$	(37,447	)

¹ Represents net shares/beneficial interest purchased.

² Represents net shares sold.

(b) Security, or a portion of security, is on loan.

(c) Represents the current yield as of report date.

(d) All or a portion of security was purchased with the cash collateral from loaned securities.

Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

· Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master Portfolio has the ability to access

· Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

· Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master Portfolio’s own assumptions used in determining the fair value of investments)

233

See Notes to Financial Statements.

LIFEPATH RETIREMENT MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Concluded)

December 31, 2013

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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master Portfolio’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Master Portfolio’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements. The following table summarizes the Master Portfolio’s investments categorized in the disclosure hierarchy as of December 31, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Affiliated Investment Companies	$	323,032,110	$	1,290,272,500		—	$	1,613,304,610

The carrying amount for certain of the Master Portfolio’s liabilities approximates fair value for financial reporting purposes. As of December 31, 2013, collateral on securities loaned at value of $(24,986,975) is categorized as Level 2 within the disclosure hierarchy.

There were no transfers between levels during the period ending December 31, 2013.

234 See Notes to Financial Statements.

LIFEPATH 2020 MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS

December 31, 2013

(Percentages shown are based on Net Assets)

Affiliated Investment Companies (a)	Shares/ Beneficial Interest		Value
Equity Funds — 51.2%
Active Stock Master Portfolio	$	734,517,624	$	734,517,624
ACWI ex-US Index Master Portfolio	$	31,390,459		31,390,459
BlackRock Commodity Strategies Fund		11,033,370		104,044,675
BlackRock Emerging Markets Fund, Inc.		1,998,897		39,838,017
International Tilts Master Portfolio	$	133,430,820		133,430,820
iShares Cohen & Steers REIT ETF (b)		440,037		32,879,565
iShares International Developed Real Estate ETF		1,210,918		37,429,475
iShares MSCI Canada ETF (b)		851,740		24,836,738
iShares MSCI EAFE ETF		1,555,425		104,306,801
iShares MSCI EAFE Small-Cap ETF		754,858		38,482,661
iShares MSCI Emerging Markets ETF (b)		811,846		33,910,807
Master Small Cap Index Series	$	115,162,753		115,162,753
Russell 1000® Index Master Portfolio	$	18,841,005		18,841,005
				1,449,071,400
Fixed Income Funds — 48.7%
CoreAlpha Bond Master Portfolio	$	1,188,795,466		1,188,795,466
iShares TIPS Bond ETF		1,738,491		191,060,161
				1,379,855,627

Affiliated Investment Companies (a)	Shares		Value
Short-Term Securities — 1.7%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.14% (c)(d)		40,527,090	$	40,527,090
BlackRock Cash Funds: Prime, SL Agency Shares, 0.11% (c)(d)		6,350,735		6,350,735
				46,877,825
Total Affiliated Investment Companies (Cost — $2,616,377,292*) — 101.6%				2,875,804,852
Liabilities in Excess of Other Assets — (1.6)%				(44,535,117	)
Net Assets — 100.0%			$	2,831,269,735

* As of December 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Total cost	$	2,631,350,491
Gross unrealized appreciation	$	333,481,425
Gross unrealized depreciation		(89,027,064	)
Net unrealized appreciation	$	244,454,361

(a) Investments in issuers considered to be an affiliate of the Master Portfolio during the year ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Beneficial Interest Held at December  31, 2012		Shares/ Beneficial Interest Purchased		Shares/ Beneficial Interest Sold			Shares/ Beneficial Interest Held at December  31, 2013		Value at December 31, 2013		Income		Realized Gain (Loss)
Active Stock Master Portfolio	$	725,539,622	$	8,978,0021		—		$	734,517,624	$	734,517,624	$	13,539,099	$	130,930,237
ACWI ex-US Index Master Portfolio	$	42,040,829		—	$	(10,650,370	)2	$	31,390,459	$	31,390,459	$	1,581,135	$	3,812,251
BlackRock Cash Funds: Institutional, SL Agency Shares		18,545,337		21,981,7531		—			40,527,090	$	40,527,090	$	150,011		—
BlackRock Cash Funds: Prime, SL Agency Shares		4,104,742		2,245,9931		—			6,350,735	$	6,350,735	$	22,351		—
BlackRock Emerging Markets Fund, Inc.		—		1,998,897		—			1,998,897	$	39,838,017	$	143,699		—
BlackRock Commodity Strategies Fund		9,023,154		2,010,216		—			11,033,370	$	104,044,675		—		—
CoreAlpha Bond Master Portfolio	$	997,874,524	$	190,920,9421		—		$	1,188,795,466	$	1,188,795,466	$	27,340,812	$	(1,345,089	)
International Tilts Master Portfolio		—	$	133,430,8201		—		$	133,430,820	$	133,430,820	$	28,686	$	(181,763	)
iShares Cohen & Steers REIT ETF		450,679		14,910		(25,552	)		440,037	$	32,879,565	$	1,123,573	$	131,432
iShares International Developed Real Estate ETF		1,375,939		60,387		(225,408	)		1,210,918	$	37,429,475	$	4,388,160	$	1,186,092
iShares MSCI Canada ETF		951,620		7,904		(107,784	)		851,740	$	24,836,738	$	605,885	$	(467,567	)
iShares MSCI EAFE ETF		3,472,019		—		(1,916,594	)		1,555,425	$	104,306,801	$	5,064,890	$	35,555,914
iShares MSCI EAFE Small-Cap ETF		772,687		17,485		(35,314	)		754,858	$	38,482,661	$	917,048	$	(11,366	)
iShares MSCI Emerging Markets ETF		1,801,391		—		(989,545	)		811,846	$	33,910,807	$	1,269,582	$	(55,034	)
iShares TIPS Bond ETF		1,297,149		462,701		(21,359	)		1,738,491	$	191,060,161	$	1,914,733	$	(128,668	)
Master Small Cap Index Series	$	91,038,885	$	24,123,8681		—		$	115,162,753	$	115,162,753	$	1,546,651	$	5,546,260
Russell 1000® Index Master Portfolio		—	$	18,841,0051		—		$	18,841,005	$	18,841,005	$	174,643	$	(67,929	)

¹  Represents net shares/beneficial interest purchased.

²  Represents net beneficial interest sold.

(b) Security, or a portion of security, is on loan.

(c) Represents the current yield as of report date.

(d) All or a portion of security was purchased with the cash collateral from loaned securities.

Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

· Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master Portfolio has the ability to access

235

See Notes to Financial Statements.

LIFEPATH 2020 MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Concluded)

December 31, 2013

· Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

· Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master Portfolio’s own assumptions used in determining the fair value of investments)

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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master Portfolio’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Master Portfolio’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements. The following table summarizes the Master Portfolio’s investments categorized in the disclosure hierarchy as of December 31, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Affiliated Investment Companies	$	653,666,725	$	2,222,138,127		—	$	2,875,804,852

The carrying amount for certain of the Master Portfolio’s liabilities approximates fair value for financial reporting purposes. As of December 31, 2013, collateral on securities loaned at value of $(41,090,000) is categorized as Level 2 within the disclosure hierarchy.

There were no transfers between levels during the period ending December 31, 2013.

236 See Notes to Financial Statements.

LIFEPATH 2030 MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS

December 31, 2013

(Percentages shown are based on Net Assets)

Affiliated Investment Companies (a)	Shares/ Beneficial Interest		Value
Equity Funds — 67.1%
Active Stock Master Portfolio	$	883,697,843	$	883,697,843
ACWI ex-US Index Master Portfolio	$	52,940,137		52,940,137
BlackRock Commodity Strategies Fund		10,830,777		102,134,225
BlackRock Emerging Markets Fund, Inc.		2,516,085		50,145,576
International Tilts Master Portfolio	$	165,412,631		165,412,631
iShares Cohen & Steers REIT ETF (b)		951,541		71,099,144
iShares International Developed Real Estate ETF (b)		2,422,429		74,877,280
iShares MSCI Canada ETF (b)		1,012,839		29,534,385
iShares MSCI EAFE ETF		1,843,415		123,619,410
iShares MSCI EAFE Small-Cap ETF (b)		973,793		49,643,967
iShares MSCI Emerging Markets ETF		954,459		39,867,752
Master Small Cap Index Series	$	87,580,909		87,580,909
Russell 1000® Index Master Portfolio	$	48,110,697		48,110,697
				1,778,663,956
Fixed Income Funds — 32.9%
CoreAlpha Bond Master Portfolio	$	777,088,211		777,088,211
iShares TIPS Bond ETF		863,157		94,860,954
				871,949,165

Affiliated Investment Companies (a)	Shares		Value
Short-Term Securities — 2.6%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.14% (c)(d)		59,018,753	$	59,018,753
BlackRock Cash Funds: Prime, SL Agency Shares, 0.11% (c)(d)		9,641,041		9,641,041
				68,659,794
Total Affiliated Investment Companies (Cost — $2,421,944,020*) — 102.6%				2,719,272,915
Liabilities in Excess of Other Assets — (2.6)%				(67,791,997	)
Net Assets — 100.0%			$	2,651,480,918

* As of December 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	2,440,237,402
Gross unrealized appreciation	$	379,756,364
Gross unrealized depreciation		(100,720,851	)
Net unrealized appreciation	$	279,035,513

(a) Investments in issuers considered to be an affiliate of the Master Portfolio during the period ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Beneficial Interest Held at December  31, 2012		Shares/ Beneficial Interest Purchased		Shares/ Beneficial Interest Sold			Shares/ Beneficial Interest Held at December  31, 2013		Value at December 31, 2013		Income		Realized Gain (Loss)
Active Stock Master Portfolio	$	841,283,578	$	42,414,2651		—		$	883,697,843	$	883,697,843	$	16,116,615	$	151,746,359
ACWI ex-US Index Master Portfolio	$	48,830,798	$	4,109,3391		—		$	52,940,137	$	52,940,137	$	2,117,805	$	4,767,084
BlackRock Cash Funds: Institutional, SL Agency Shares		39,402,527		19,616,2261		—			59,018,753	$	59,018,753	$	164,788		—
BlackRock Cash Funds: Prime, SL Agency Shares		9,624,087		16,9541		—			9,641,041	$	9,641,041	$	25,753		—
BlackRock Commodity Strategies Fund		7,981,436		2,849,341		—			10,830,777	$	102,134,225		—		—
BlackRock Emerging Markets Fund, Inc.		—		2,516,085		—			2,516,085	$	50,145,576	$	179,353		—
CoreAlpha Bond Master Portfolio	$	593,095,629	$	183,992,5821		—		$	777,088,211	$	777,088,211	$	16,831,212	$	(2,171,208	)
International Tilts Master Portfolio		—	$	165,412,6311		—		$	165,412,631	$	165,412,631	$	68,544	$	(224,014	)
iShares Cohen & Steers REIT ETF		750,700		209,293		(8,452	)		951,541	$	71,099,144	$	2,120,036	$	(6,464	)
iShares International Developed Real Estate ETF		2,215,546		270,259		(63,376	)		2,422,429	$	74,877,280	$	8,307,903	$	238,026
iShares MSCI Canada ETF		1,114,324		10,190		(111,675	)		1,012,839	$	29,534,385	$	718,064	$	(491,922	)
iShares MSCI EAFE ETF		4,026,402		—		(2,182,987	)		1,843,415	$	123,619,410	$	5,931,501	$	33,405,113
iShares MSCI EAFE Small-Cap ETF		889,363		140,086		(55,656	)		973,793	$	49,643,967	$	1,139,758	$	(75,958	)
iShares MSCI Emerging Markets ETF		2,093,140		—		(1,138,681	)		954,459	$	39,867,752	$	1,474,358	$	(1,650,221	)
iShares TIPS Bond ETF		707,463		252,770		(97,076	)		863,157	$	94,860,954	$	1,044,709	$	(134,887	)
Master Small Cap Index Series	$	64,557,533	$	23,023,3761		—		$	87,580,909	$	87,580,909	$	1,124,857	$	4,015,360
Russell 1000® Index Master Portfolio		—	$	48,110,6971		—		$	48,110,697	$	48,110,697	$	215,222	$	(47,243	)

¹  Represents net shares/beneficial interest purchased.

(b) Security, or a portion of security, is on loan.

(c) Represents the current yield as of report date.

(d) All or a portion of security was purchased with the cash collateral from loaned securities.

Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

· Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master Portfolio has the ability to access

· Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

237

See Notes to Financial Statements.

LIFEPATH 2030 MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Concluded)

December 31, 2013

· Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master Portfolio’s own assumptions used in determining the fair value of investments)

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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master Portfolio’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Master Portfolio’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements. The following table summarizes the Master Portfolio’s investments categorized in the disclosure hierarchy as of December 31, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Affiliated Investment Companies	$	704,442,487	$	2,014,830,428		—	$	2,719,272,915

The carrying amount for certain of the Master Portfolio’s liabilities approximates fair value for financial reporting purposes. As of December 31, 2013, collateral on securities loaned at value of $(62,378,665) is categorized as Level 2 within the disclosure hierarchy.

There were no transfers between levels during the period ending December 31, 2013.

238 See Notes to Financial Statements.

LIFEPATH 2040 MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS

December 31, 2013

(Percentages shown are based on Net Assets)

Affiliated Investment Companies (a)	Shares/ Beneficial Interest		Value
Equity Funds — 78.2%
Active Stock Master Portfolio	$	799,127,066	$	799,127,066
ACWI ex-US Index Master Portfolio	$	46,818,008		46,818,008
BlackRock Commodity Strategies Fund		8,674,420		81,799,783
BlackRock Emerging Markets Fund, Inc.		2,360,437		47,043,512
International Tilts Master Portfolio	$	154,522,993		154,522,993
iShares Cohen & Steers REIT ETF (b)		1,112,408		83,119,126
iShares International Developed Real Estate ETF		2,633,592		81,404,329
iShares MSCI Canada ETF (b)		958,137		27,939,275
iShares MSCI EAFE ETF		1,749,865		117,345,947
iShares MSCI EAFE Small-Cap ETF		901,955		45,981,666
iShares MSCI Emerging Markets ETF		896,775		37,458,292
Master Small Cap Index Series	$	54,999,126		54,999,126
Russell 1000® Index Master Portfolio	$	66,301,350		66,301,350
				1,643,860,473

Affiliated Investment Companies (a)	Shares/ Beneficial Interest		Value
Fixed Income Funds — 20%
CoreAlpha Bond Master Portfolio	$	401,864,037	$	401,864,037
iShares TIPS Bond ETF		165,134		18,148,227
				420,012,264
Short-Term Securities — 1.8%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.14% (c)(d)		33,479,740		33,479,740
BlackRock Cash Funds: Prime, SL Agency Shares, 0.11% (c)(d)		5,267,073		5,267,073
				38,746,813
Total Affiliated Investment Companies (Cost — $1,836,504,211*) — 101.8%				2,102,619,550
Liabilities in Excess of Other Assets — (1.8)%				(37,926,290	)
Net Assets — 100.0%			$	2,064,693,260

* As of December 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	1,858,537,803
Gross unrealized appreciation	$	336,018,508
Gross unrealized depreciation		(91,936,761	)
Net unrealized appreciation	$	244,081,747

(a) Investments in issuers considered to be an affiliate of the Master Portfolio during the period ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Beneficial Interest Held at December  31, 2012		Shares/ Beneficial Interest Purchased		Shares/ Beneficial Interest Sold			Shares/ Beneficial Interest Held at December  31, 2013		Value at December 31, 2013		Income		Realized Gain (Loss)
Active Stock Master Portfolio	$	760,695,544	$	38,431,5221		—		$	799,127,066	$	799,127,066	$	14,727,875	$	137,035,578
ACWI ex-US Index Master Portfolio	$	38,541,025	$	8,276,9831		—		$	46,818,008	$	46,818,008	$	1,836,546	$	3,976,323
BlackRock Cash Funds: Institutional, SL Agency Shares		26,972,214		6,507,5261		—			33,479,740	$	33,479,740	$	140,526		—
BlackRock Cash Funds: Prime, SL Agency Shares		6,555,513		—		(1,288,440	)2		5,267,073	$	5,267,073	$	21,254		—
BlackRock Commodity Strategies Fund		6,060,504		2,649,142		(35,226	)		8,674,420	$	81,799,783	$	—	$	(40,158	)
BlackRock Emerging Markets Fund, Inc.		—		2,360,437		—			2,360,437	$	47,043,512	$	168,061		—
CoreAlpha Bond Master Portfolio	$	272,301,743	$	129,562,2941		—		$	401,864,037	$	401,864,037	$	8,133,549	$	(1,767,107	)
International Tilts Master Portfolio		—	$	154,522,9931		—		$	154,522,993	$	154,522,993	$	105,166	$	(209,151	)
iShares Cohen & Steers REIT ETF		807,851		358,386		(53,829	)		1,112,408	$	83,119,126	$	2,342,175	$	319,502
iShares International Developed Real Estate ETF		2,340,965		423,060		(130,433	)		2,633,592	$	81,404,329	$	9,012,051	$	(354,895	)
iShares MSCI Canada ETF		1,023,835		11,083		(76,781	)		958,137	$	27,939,275	$	669,824	$	(335,022	)
iShares MSCI EAFE ETF		3,712,248		—		(1,962,383	)		1,749,865	$	117,345,947	$	5,527,027	$	23,383,205
iShares MSCI EAFE Small-Cap ETF		797,837		136,181		(32,063	)		901,955	$	45,981,666	$	1,067,764	$	(18,175	)
iShares MSCI Emerging Markets ETF		1,924,980		—		(1,028,205	)		896,775	$	37,458,292	$	1,368,389	$	(2,802,782	)
iShares TIPS Bond ETF		238,933		65,595		(139,394	)		165,134	$	18,148,227	$	320,448	$	496,753
Master Small Cap Index Series	$	39,498,574	$	15,500,5521		—		$	54,999,126	$	54,999,126	$	685,793	$	2,446,655
Russell 1000® Index Master Portfolio		—	$	66,301,3501		—		$	66,301,350	$	66,301,350	$	202,260	$	(40,758	)

¹  Represents net shares/beneficial interest purchased.

²  Represents net shares sold.

(b) Security, or a portion of security, is on loan.

(c) Represents the current yield as of report date.

(d) All or a portion of security was purchased with the cash collateral from loaned securities.

Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

· Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master Portfolio has the ability to access

· Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or

similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

· Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master Portfolio’s own assumptions used in determining the fair value of investments)

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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

239

See Notes to Financial Statements.

LIFEPATH 2040 MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Concluded)

December 31, 2013

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master Portfolio’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Master Portfolio’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.

The following table summarizes the Master Portfolio’s investments categorized in the disclosure hierarchy as of December 31, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Affiliated Investment Companies	$	578,986,970	$	1,523,632,580		—	$	2,102,619,550

The carrying amount for certain of the Master Portfolio’s liabilities approximates fair value for financial reporting purposes. As of December 31, 2013, collateral on securities loaned at value of $(34,078,580) is categorized as Level 2 within the disclosure hierarchy.

There were no transfers between levels during the period ending December 31, 2013.

240 See Notes to Financial Statements.

LIFEPATH 2050 MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS

December 31, 2013

(Percentages shown are based on Net Assets)

Affiliated Investment Companies (a)	Shares/ Beneficial Interest		Value
Equity Funds — 90.3%
Active Stock Master Portfolio	$	176,775,516	$	176,775,516
ACWI ex-US Index Master Portfolio	$	27,522,238		27,522,238
BlackRock Commodity Strategies Fund		1,705,352		16,081,467
BlackRock Emerging Markets Fund, Inc.		539,560		10,753,429
International Tilts Master Portfolio	$	36,382,911		36,382,911
iShares Cohen & Steers REIT ETF		260,332		19,452,007
iShares International Developed Real Estate ETF		725,825		22,435,251
iShares MSCI Canada ETF (b)		209,515		6,109,457
iShares MSCI EAFE ETF		211,392		14,175,948
iShares MSCI EAFE Small-Cap ETF		203,079		10,352,967
iShares MSCI Emerging Markets ETF		113,169		4,727,069
Master Small Cap Index Series	$	8,543,922		8,543,922
Russell 1000® Index Master Portfolio	$	21,543,179		21,543,179
				374,855,361

Affiliated Investment Companies (a)	Shares/ Beneficial Interest		Value
Fixed Income Fund — 9.7%
CoreAlpha Bond Master Portfolio	$	40,230,315	$	40,230,315
Short-Term Securities — 1.6%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.14% (c)(d)		5,872,036		5,872,036
BlackRock Cash Funds: Prime, SL Agency Shares, 0.11% (c)(d)		859,378		859,378
				6,731,414
Total Affiliated Investment Companies (Cost — $375,079,377*) — 101.6%				421,817,090
Liabilities in Excess of Other Assets — (1.6)%				(6,553,772	)
Net Assets — 100.0%			$	415,263,318

* As of December 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Total cost	$	376,228,826
Gross unrealized appreciation	$	60,732,547
Gross unrealized depreciation		(15,144,283	)
Net unrealized appreciation	$	45,588,264

(a) Investments in issuers considered to be an affiliate of the Master Portfolio during the period ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Beneficial Interest Held at December  31, 2012		Shares/ Beneficial Interest Purchased		Shares/ Beneficial Interest Sold			Shares/ Beneficial Interest Held at December  31, 2013		Value at December 31, 2013		Income		Realized Gain (Loss)
Active Stock Master Portfolio	$	136,546,567	$	40,228,9491		—		$	176,775,516	$	176,775,516	$	3,021,420	$	24,703,268
ACWI ex-US Index Master Portfolio	$	23,074,195	$	4,448,0431		—		$	27,522,238	$	27,522,238	$	1,078,652	$	2,135,184
BlackRock Cash Funds: Institutional, SL Agency Shares		3,548,844		2,323,1921		—			5,872,036	$	5,872,036	$	26,083		—
BlackRock Cash Funds: Prime, SL Agency Shares		907,096		—		(47,718	)2		859,378	$	859,378	$	3,633		—
BlackRock Commodity Strategies Fund		969,991		735,361		—			1,705,352	$	16,081,467		—	$	—
BlackRock Emerging Markets Fund, Inc.		—		539,560		—			539,560	$	10,753,429	$	37,592		—
CoreAlpha Bond Master Portfolio	$	18,868,890	$	21,361,4251		—		$	40,230,315	$	40,230,315	$	691,725	$	(458,253	)
International Tilts Master Portfolio		—	$	36,382,9111		—		$	36,382,911	$	36,382,911	$	39,264	$	(48,595	)
iShares Cohen & Steers REIT ETF		154,447		107,015		(1,130	)		260,332	$	19,452,007	$	544,426	$	(5,930	)
iShares International Developed Real Estate ETF		444,626		283,801		(2,602	)		725,825	$	22,435,251	$	2,304,395	$	5,845
iShares MSCI Canada ETF		130,967		87,947		(9,399	)		209,515	$	6,109,457	$	118,651	$	(35,341	)
iShares MSCI EAFE ETF		471,857		—		(260,465	)		211,392	$	14,175,948	$	692,776	$	2,672,320
iShares MSCI EAFE Small-Cap ETF		134,998		68,081		—			203,079	$	10,352,967	$	227,538		—
iShares MSCI Emerging Markets ETF		245,849		—		(132,680	)		113,169	$	4,727,069	$	174,907	$	(134,261	)
Master Small Cap Index Series	$	4,938,307	$	3,605,6151		—		$	8,543,922	$	8,543,922	$	97,416	$	342,249
Russell 1000® Index Master Portfolio		—	$	21,543,1791		—		$	21,543,179	$	21,543,179	$	46,673	$	(1,202	)

¹  Represents net shares/beneficial interest purchased.

²  Represents net shares sold.

(b) Security, or a portion of security, is on loan.

(c) Represents the current yield as of report date.

(d) All or a portion of security was purchased with the cash collateral from loaned securities.

Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

· Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master Portfolio has the ability to access

· Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or

similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

· Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master Portfolio’s own assumptions used in determining the fair value of investments)

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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

241

See Notes to Financial Statements.

LIFEPATH 2050 MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Concluded)

December 31, 2013

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master Portfolio’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Master Portfolio’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.

The following table summarizes the Master Portfolio’s investments categorized in the disclosure hierarchy as of December 31, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Affiliated Investment Companies	$	110,819,009	$	310,998,081		—	$	421,817,090

The carrying amount for certain of the Master Portfolio’s liabilities approximates fair value for financial reporting purposes. As of December 31, 2013, collateral on securities loaned at value of $(5,560,275) is categorized as Level 2 within the disclosure hierarchy.

There were no transfers between levels during the period ending December 31, 2013.

242 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2013

	LifePath Retirement Master Portfolio		LifePath 2020 Master Portfolio		LifePath 2030 Master Portfolio		LifePath 2040 Master Portfolio		LifePath 2050 Master Portfolio
Assets
Investments at value — affiliated1,2	$	1,613,304,610	$	2,875,804,852	$	2,719,272,915	$	2,102,619,550	$	421,817,090
Investments sold receivable		48,517,080		117,668,021		135,475,816		124,725,857		25,393,534
Contributions receivable from investors		854,573		312,002		763,537		1,231,985		280,920
Securities lending income receivable — affiliated		3,602		8,153		7,755		8,219		1,473
Other income receivable — affiliated		19,492		43,017		44,991		39,313		5,764
Total assets		1,662,699,357		2,993,836,045		2,855,565,014		2,228,624,924		447,498,781
Liabilities
Collateral on securities loaned at value		24,986,975		41,090,000		62,378,665		34,078,580		5,560,275
Investments purchased payable		38,203,402		92,588,879		114,638,715		108,292,945		23,697,157
Accrued trustees’ fees		11,857		20,203		18,554		14,491		3,296
Investment advisory fees payable		84,943		115,751		72,168		33,444		5,681
Professional fees payable		19,222		21,133		20,488		19,358		16,512
Withdrawals payable to investors		12,984,950		28,730,344		26,955,506		21,492,846		2,952,542
Total liabilities		76,291,349		162,566,310		204,084,096		163,931,664		32,235,463
Net Assets	$	1,586,408,008	$	2,831,269,735	$	2,651,480,918	$	2,064,693,260	$	415,263,318
Net Assets Consist of
Investors’ capital	$	1,475,335,921	$	2,571,842,175	$	2,354,152,023	$	1,798,577,921	$	368,525,605
Net unrealized appreciation/depreciation		111,072,087		259,427,560		297,328,895		266,115,339		46,737,713
Net Assets	$	1,586,408,008	$	2,831,269,735	$	2,651,480,918	$	2,064,693,260	$	415,263,318
1 Investments at cost — affiliated	$	1,502,232,523	$	2,616,377,292	$	2,421,944,020	$	1,836,504,211	$	375,079,377
2 Securities loaned at value	$	24,346,591	$	40,169,375	$	61,145,092	$	33,305,524	$	5,450,004

243

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENTS OF OPERATIONS

Year Ended December 31, 2013

	LifePath Retirement Master Portfolio			LifePath 2020 Master Portfolio			LifePath 2030 Master Portfolio			LifePath 2040 Master Portfolio			LifePath 2050 Master Portfolio
Investment Income
Dividends — affiliated	$	4,504,478		$	15,427,572		$	20,915,682		$	20,475,739		$	4,100,272
Securities lending — affiliated — net		74,447			164,985			183,402			156,352			28,460
Income — affiliated		4,226			7,377			7,139			5,428			1,255
Other income — affiliated		19,492			43,017			44,991			39,313			5,764
Net investment income allocated from the applicable Underlying Master Portfolios:
Dividends		7,300,281			15,989,993			18,659,287			16,697,885			4,075,000
Interest		20,513,737			27,682,293			17,462,806			8,811,187			881,918
Expenses		(3,254,418	)		(5,592,446	)		(5,101,886	)		(3,925,907	)		(770,404	)
Fees waived		397,491			925,658			1,070,373			963,542			195,143
Total income		29,559,734			54,648,449			53,241,794			43,223,539			8,517,408
Expenses
Investment advisory		5,440,189			9,442,251			8,586,084			6,614,229			1,198,435
Professional		29,755			32,465			31,730			30,330			26,591
Independent Trustees		50,915			86,049			78,448			61,053			13,600
Total expenses		5,520,859			9,560,765			8,696,262			6,705,612			1,238,626
Less fees waived by Manager		(4,469,741	)		(8,149,933	)		(7,758,207	)		(6,212,582	)		(1,137,098	)
Total expenses after fees waived		1,051,118			1,410,832			938,055			493,030			101,528
Net investment income		28,508,616			53,237,617			52,303,739			42,730,509			8,415,880
Realized and Unrealized Gain (Loss)
Net realized gain from:
Investments — unaffiliated		2,438			7,740			2,825			2,446			—
Investments — affiliated		16,344,465			36,362,219			31,284,138			20,661,119			2,502,633
Allocations from the applicable Underlying Master Portfolios from investments, financial futures contracts, swaps and foreign currency transactions		60,650,668			138,921,060			158,234,783			141,518,307			26,680,336
		76,997,571			175,291,019			189,521,746			162,181,872			29,182,969
Net change in unrealized appreciation/depreciation on:
Investments — affiliated		(20,518,656	)		(27,331,844	)		(11,065,995	)		3,592,431			(47,132	)
Allocated from the applicable Underlying Master Portfolios from investments, financial futures contracts, swaps and foreign currency translations		15,428,054			62,716,338			97,215,460			98,086,868			26,472,278
		(5,090,602	)		35,384,494			86,149,465			101,679,299			26,425,146
Total realized and unrealized gain		71,906,969			210,675,513			275,671,211			263,861,171			55,608,115
Net Increase in Net Assets Resulting from Operations	$	100,415,585		$	263,913,130		$	327,974,950		$	306,591,680		$	64,023,995

244 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS

	LifePath Retirement Master Portfolio						LifePath 2020 Master Portfolio
	Year Ended December 31,						Year Ended December 31,
Increase (Decrease) in Net Assets:	2013			2012			2013			2012
Operations
Net investment income	$	28,508,616		$	31,654,087		$	53,237,617		$	55,887,731
Net realized gain		76,997,571			37,988,999			175,291,019			70,282,877
Net change in unrealized appreciation/depreciation		(5,090,602	)		55,122,353			35,384,494			135,234,770
Net increase in net assets resulting from operations		100,415,585			124,765,439			263,913,130			261,405,378
Capital Transactions
Proceeds from contributions		200,566,162			203,555,243			298,075,510			280,792,493
Value of withdrawals		(206,149,443	)		(223,777,527	)		(255,035,339	)		(376,464,121	)
Net increase (decrease) in net assets derived from capital transactions		(5,583,281	)		(20,222,284	)		43,040,171			(95,671,628	)
Net Assets
Total increase in net assets		94,832,304			104,543,155			306,953,301			165,733,750
Beginning of year		1,491,575,704			1,387,032,549			2,524,316,434			2,358,582,684
End of year	$	1,586,408,008		$	1,491,575,704		$	2,831,269,735		$	2,524,316,434

	LifePath 2030 Master Portfolio						LifePath 2040 Master Portfolio
	Year Ended December 31,						Year Ended December 31,
Increase (Decrease) in Net Assets:	2013			2012			2013			2012
Operations
Net investment income	$	52,303,739		$	50,451,841		$	42,730,509		$	39,418,092
Net realized gain		189,521,746			61,313,076			162,181,872			48,434,526
Net change in unrealized appreciation/depreciation		86,149,465			155,165,763			101,679,299			137,661,928
Net increase in net assets resulting from operations		327,974,950			266,930,680			306,591,680			225,514,546
Capital Transactions
Proceeds from contributions		287,895,384			257,202,657			203,577,910			182,726,933
Value of withdrawals		(201,833,907	)		(300,799,718	)		(146,733,461	)		(216,740,612	)
Net increase (decrease) in net assets derived from capital transactions		86,061,477			(43,597,061	)		56,844,449			(34,013,679	)
Net Assets
Total increase in net assets		414,036,427			223,333,619			363,436,129			191,500,867
Beginning of year		2,237,444,491			2,014,110,872			1,701,257,131			1,509,756,264
End of year	$	2,651,480,918		$	2,237,444,491		$	2,064,693,260		$	1,701,257,131

245

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS (Concluded)

	LifePath 2050 Master Portfolio
	Year Ended December 31,
Increase (Decrease) in Net Assets:	2013			2012
Operations
Net investment income	$	8,415,880		$	5,493,750
Net realized gain		29,182,969			5,074,837
Net change in unrealized appreciation/depreciation		26,425,146			21,179,304
Net increase in net assets resulting from operations		64,023,995			31,747,891
Capital Transactions
Proceeds from contributions		110,404,463			102,543,769
Value of withdrawals		(27,016,387	)		(46,527,191	)
Net increase in net assets derived from capital transactions		83,388,076			56,016,578
Net Assets
Total increase in net assets		147,412,071			87,764,469
Beginning of year		267,851,247			180,086,778
End of year	$	415,263,318		$	267,851,247

246 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

FINANCIAL HIGHLIGHTS

	LifePath Retirement Master Portfolio
	Year Ended December 31,
	2013			2012			2011			2010		2009
Total Investment Return
Total investment return		6.75%			9.11%			4.46%			9.83%		18.75%
Ratios to Average Net Assets
Total expenses		0.54%	1,2,3		0.55%	4,5,6		0.55%	4,5,6		0.61%4		0.59%	4
Total expenses after fees waived		0.25%	1,2,3		0.28%	4,5,6		0.27%	4,5,6		0.26%4		0.26%	4
Net investment income7		1.83%	1,2,3		2.22%	4,5,6		2.77%	4,5,6		2.60%4		3.61%	4
Supplemental Data
Net assets, end of year (000)	$	1,586,408		$	1,491,576		$	1,387,033		$	1,380,141	$	1,165,307
Portfolio turnover		17%	8		4%	9		4%	9		4%9		6%	9,10

¹  Includes the LifePath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds.

²  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated fees waived of 0.03%.

³  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.10%, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated expenses and/or net investment income.

⁴  Includes the LifePath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the total expenses for the two years ended December 31, 2010, which include gross expenses. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund and iShares exchange-traded funds.

⁵  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated fees waived of 0.03% and 0.02%, for the years ended December 31, 2012 and December 31, 2011, respectively.

⁶  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.08% for each of the years ended December 31, 2012 and December 31, 2011, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated expenses and/or net investment income.

⁷  Includes the LifePath Master Portfolio’s share of the allocated net investment income from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the year ended December 31, 2013, which also includes International Tilts Master Portfolio and Russell 1000^® Index Master Portfolio.

⁸  Includes the purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio.

⁹  Excludes purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, if these transactions had been included to conform to the current year presentation, portfolio turnover would have been 13%, 20%, 14%, and 18% for the years ended December 31, 2012, December 31, 2011, December 31, 2010 and December 31, 2009, respectively.

¹⁰  Excludes in-kind contribution of portfolio securities received in a tax-free reorganization on November 20, 2009.

247

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

FINANCIAL HIGHLIGHTS (Continued)

	LifePath 2020 Master Portfolio
	Year Ended December 31,
	2013			2012			2011			2010			2009
Total Investment Return
Total investment return		10.17%			11.49%			1.96%			11.40%			23.21%
Ratios to Average Net Assets
Total expenses		0.53%	1,2,3		0.53%	4,5,6		0.53%	4,5,6		0.59%	4		0.58%	4
Total expenses after fees waived		0.23%	1,2,3		0.25%	4,5,6		0.25%	4,5,6		0.23%	4		0.23%	4
Net investment income7		1.97%	1,2,3		2.30%	4,5,6		2.56%	4,5,6		2.45%	4		3.15%	4
Supplemental Data
Net assets, end of year (000)	$	2,831,270		$	2,524,316		$	2,358,583		$	2,343,961		$	1,779,673
Portfolio turnover		19%	8		5%	9		5%	9		4%	9		6%	9

¹  Includes the LifePath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds.

²  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated fees waived of 0.03%.

³  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.12%, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated expenses and/or net investment income.

⁴  Includes the LifePath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the total expenses for the two years ended December 31, 2010, which include gross expenses. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund and iShares exchange-traded funds.

⁵  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated fees waived of 0.03% for each of the years ended December 31, 2012 and December 31, 2011.

⁶  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.11% for each of the years ended December 31, 2012 and December 31, 2011, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated expenses and/or net investment income.

⁷  Includes the LifePath Master Portfolio’s share of the allocated net investment income from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the year ended December 31, 2013, which also includes International Tilts Master Portfolio and Russell 1000^® Index Master Portfolio.

⁸  Includes the purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio.

⁹  Excludes purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, if these transactions had been included to conform to the current year presentation, portfolio turnover would have been 15%, 23%, 13%, and 16% for the years ended December 31, 2012, December 31, 2011, December 31, 2010 and December 31, 2009, respectively.

248 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

FINANCIAL HIGHLIGHTS (Continued)

	LifePath 2030 Master Portfolio
	Year Ended December 31,
	2013			2012			2011			2010			2009
Total Investment Return
Total investment return		14.16%			13.59%			(0.13)%			12.36%			26.27%
Ratios to Average Net Assets
Total expenses		0.52%	1,2,3		0.53%	4,5,6		0.52%	4,5,6		0.57%	4		0.56%	4
Total expenses after fees waived		0.20%	1,2,3		0.23%	4,5,6		0.22%	4,5,6		0.21%	4		0.20%	4
Net investment income7		2.13%	1,2,3		2.37%	4,5,6		2.39%	4,5,6		2.34%	4		2.97%	4
Supplemental Data
Net assets, end of year (000)	$	2,651,481		$	2,237,444		$	2,014,111		$	1,972,075		$	1,433,256
Portfolio turnover		22%	8		5%	9		7%	9		3%	9		7%	9

¹  Includes the LifePath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds.

²  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated fees waived of 0.04%.

³  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.15%, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated expenses and/or net investment income.

⁴  Includes the Lifepath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the total expenses for the two years ended December 31, 2010, which include gross expenses. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund and iShares exchange-traded funds.

⁵  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated fees waived of 0.04% for each of the years ended December 31, 2012 and December 31, 2011.

⁶  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.13% for each of the years ended December 31, 2012 and December 31, 2011, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated expenses and/or net investment income.

⁷  Includes the LifePath Master Portfolio’s share of the allocated net investment income from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the year ended December 31, 2013, which also includes International Tilts Master Portfolio and Russell 1000^® Index Master Portfolio.

⁸  Includes the purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio.

⁹  Excludes purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, if these transactions had been included to conform to the current year presentation, portfolio turnover would have been 16%, 20%, 10%, and 13% for the years ended December 31, 2012, December 31, 2011, December 31, 2010 and December 31, 2009, respectively.

249

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

FINANCIAL HIGHLIGHTS (Continued)

	LifePath 2040 Master Portfolio
	Year Ended December 31,
	2013			2012			2011			2010			2009
Total Investment Return
Total investment return		17.42%			15.23%			(1.88)%			13.21%			28.58%
Ratios to Average Net Assets
Total expenses		0.51%	1,2,3		0.52%	4,5,6		0.52%	4,5,6		0.55%	4		0.55%	4
Total expenses after fees waived		0.18%	1,2,3		0.21%	4,5,6		0.20%	4,5,6		0.19%	4		0.18%	4
Net investment income7		2.26%	1,2,3		2.44%	4,5,6		2.24%	4,5,6		2.24%	4		2.82%	4
Supplemental Data
Net assets, end of year (000)	$	2,064,693		$	1,701,257		$	1,509,756		$	1,519,203		$	1,133,675
Portfolio turnover		26%	8		4%	9		8%	9		4%	9		6%	9

¹  Includes the LifePath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds.

²  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated fees waived of 0.05%.

³  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.17%, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated expenses and/or net investment income.

⁴  Includes the Lifepath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the total expenses for the two years ended December 31, 2010, which include gross expenses. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund and iShares exchange-traded funds.

⁵  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated fees waived of 0.05% and 0.04%, for the years ended December 31, 2012 and December 31, 2011, respectively.

⁶  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.15% for each of the years ended December 31, 2012 and December 31, 2011, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated expenses and/or net investment income.

⁷  Includes the LifePath Master Portfolio’s share of the allocated net investment income from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the year ended December 31, 2013, which also includes International Tilts Master Portfolio and Russell 1000^® Index Master Portfolio.

⁸  Includes the purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master.

⁹  Excludes purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, if these transactions had been included to conform to the current year presentation, portfolio turnover would have been 14%, 20%, 9%, and 9% for the years ended December 31, 2012, December 31, 2011, December 31, 2010 and December 31, 2009, respectively.

250 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

FINANCIAL HIGHLIGHTS (Concluded)

	LifePath 2050 Master Portfolio
	Year Ended December 31,
	2013			2012			2011			2010			2009
Total Investment Return
Total investment return		20.32%			16.55%			(3.28)%			13.93%			30.85%
Ratios to Average Net Assets
Total expenses		0.53%	1,2,3		0.54%	4,5,6		0.53%	4,5,6		0.56%	4		0.59%	4
Total expenses after fees waived		0.20%	1,2,3		0.21%	4,5,6		0.18%	4,5,6		0.17%	4		0.16%	4
Net investment income7		2.46%	1,2,3		2.51%	4,5,6		2.18%	4,5,6		2.31%	4		2.84%	4
Supplemental Data
Net assets, end of period (000)	$	415,263		$	267,851		$	180,087		$	119,391		$	40,164
Portfolio turnover		28%	8		5%	9		13%	9		5%	9		12%	9

¹  Includes the LifePath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund, BlackRock Emerging Markets Fund, Inc. and iShares exchange-traded funds.

²  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master allocated fees waived of 0.06%.

³  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.15%, although the ratio does include the LifePath Master Portfolio’s share of the allocated expenses and/or net investment income.

⁴  Includes the LifePath Master Portfolio’s pro rata portion of expenses from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the two years ended December 31, 2010, which include gross expenses. These ratios do not reflect any expenses incurred indirectly as a result of investments in BlackRock Cash Funds: Institutional, BlackRock Commodity Strategies Fund and iShares exchange-traded funds.

⁵  Includes the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated fees waived of 0.06% and 0.05%, for the years ended December 31, 2012 and December 31, 2011, respectively.

⁶  Excludes expenses incurred indirectly as a result of investments in underlying funds of approximately 0.15% and 0.17% for the years ended December 31, 2012 and December 31, 2011, respectively, although the ratio does include the LifePath Master Portfolio’s share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series’ allocated expenses and/or net investment income.

⁷  Includes the LifePath Master Portfolio’s share of the allocated net investment income from Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, except the year ended December 31, 2013, which also includes International Tilts Master Portfolio and Russell 1000^® Index Master Portfolio.

⁸  Includes the purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master.

⁹  Excludes purchases or sales of the underlying funds and Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio and Master Small Cap Index Series, if these transactions had been included to conform to the current year presentation, portfolio turnover would have been 15%, 19%, 12%, and 17% for the years ended December 31, 2012, December 31, 2011, December 31, 2010 and December 31, 2009, respectively.

251

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

LIFEPATH MASTER PORTFOLIOS

NOTES TO FINANCIAL STATEMENTS

1. Organization:

Master Investment Portfolio (“MIP”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. MIP is organized as a Delaware statutory trust. The financial statements and these accompanying notes relate to six series of MIP: LifePath^® Retirement Master Portfolio, LifePath 2020 Master Portfolio^®, LifePath 2030 Master Portfolio^®, LifePath 2040 Master Portfolio^® and LifePath^® 2050 Master Portfolio (each, a “LifePath Master Portfolio” and collectively, the “LifePath Master Portfolios”).

The LifePath Master Portfolios will each generally invest in other registered investment companies (each, an “Underlying Fund” and collectively, the “Underlying Funds”) that are managed by subsidiaries of BlackRock, Inc. (“BlackRock”) and its affiliates and affiliates of the LifePath Master Portfolios. The LifePath Master Portfolios may also invest in other master portfolios (“Underlying Master Porfolios”) that are managed by subsidiaries of BlackRock.

The value of a LifePath Master Portfolio’s investment in each of Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio reflects that LifePath Master Portfolio’s proportionate interest in the net assets of that master portfolio. As of December 31, 2013, the LifePath Master Portfolios held interests in Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio as follows:

	Active Stock Master Portfolio			ACWI ex-US Index Master Portfolio			Core- Alpha Bond Master Portfolio			Inter- national Tilts Master Portfolio			Master Small Cap Index Series			Russell 1000® Index Master Portfolio
LifePath Retirement Master Portfolio		10.24	%		3.83	%		24.59	%		9.58	%		8.63	%		1.00	%
LifePath 2020 Master Portfolio		24.98	%		5.64	%		35.24	%		24.14	%		13.40	%		1.66	%
LifePath 2030 Master Portfolio		30.05	%		9.51	%		23.04	%		29.92	%		10.19	%		4.25	%
LifePath 2040 Master Portfolio		27.18	%		8.41	%		11.91	%		27.95	%		6.40	%		5.85	%
LifePath 2050 Master Portfolio		6.01	%		4.95	%		1.19	%		6.58	%		0.99	%		1.90	%

2. Significant Accounting Policies:

The LifePath Master Portfolios’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those

estimates. The following is a summary of significant accounting policies followed by the LifePath Master Portfolios:

Valuation: US GAAP defines fair value as the price the LifePath Master Portfolios would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The LifePath Master Portfolios determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved by the Board of Trustees of MIP (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the LifePath Master Portfolio for all financial instruments. Investments in open-end registered investment companies are valued at net asset value (“NAV”) each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value. The market value of the LifePath Master Portfolios’ investments in the Underlying Funds is based on the published NAV of each Underlying Fund computed as of the close of regular trading on the New York Stock Exchange (“NYSE”) on days when the NYSE is open. The LifePath Master Portfolios record their proportionate investment in the Underlying LifePath Master Portfolios at fair value which is based upon their pro rata ownership in the net assets of the Underlying LifePath Master Portfolios.

In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that each LifePath Master Portfolio might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. The market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for

252

MASTER INVESTMENT PORTFOLIO

LIFEPATH MASTER PORTFOLIOS

NOTES TO FINANCIAL STATEMENTS (Continued)

investments where an active market does not exist, including regular due diligence of the LifePath Master Portfolios’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-divided dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the LifePath Master Portfolio is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Each LifePath Master Portfolio records daily its proportionate share of the Active Stock Master Portfolio, ACWI ex-US Index Master Portfolio, CoreAlpha Bond Master Portfolio, International Tilts Master Portfolio, Master Small Cap Index Series and Russell 1000^® Index Master Portfolio income, expenses and realized and unrealized gains and losses.

Income Taxes: Each LifePath Master Portfolio is classified as a partnership for federal income tax purposes. As such, each investor in a LifePath Master Portfolio is treated as the owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the LifePath Master Portfolio. Therefore, no federal income tax provision is required. It is intended that each LifePath Master Portfolio’s assets will be managed so an investor in the LifePath Master Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

Each LifePath Master Portfolio files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each LifePath Master Portfolio’s US federal tax returns remains open for each of the four years ended December 31, 2013. The statutes of limitations on each LifePath Master Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to each LifePath Master Portfolio’s facts and circumstances and does not believe there are any uncertain tax positions that require recognition of a tax liability.

Other: Expenses directly related to a LifePath Master Portfolio are charged to that LifePath Master Portfolio. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

3. Securities and Other Investments:

Securities Lending: The LifePath Master Portfolios may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral. The initial collateral received by the LifePath Master Portfolios should have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the LifePath Master Portfolio and any additional required collateral is delivered to the LifePath Master Portfolio on the next business day. Securities lending income, as disclosed in the Statements of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, a LifePath Master Portfolio earns dividend or interest income on the securities loaned but does not receive interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of securities on loan and the value of the related collateral are shown separately in the Statements of Assets and Liabilities as a component of investments at value, and collateral on securities loaned at value, respectively. The cash collateral investment, by the securities lending agent, BlackRock Institutional Trust Co., N.A. (“BTC), if any, is disclosed in the Schedules of Investments. BTC is an affiliate of BlackRock.

Securities lending transactions are entered into by the LifePath Master Portfolios under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the LifePath Master Portfolios, as lenders, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of a MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and the LifePath Master Portfolio can reinvest cash collateral, or, upon an event of default, resell or repledge the collateral.

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NOTES TO FINANCIAL STATEMENTS (Continued)

The following table is a summary of the LifePath Master Portfolios’ securities lending agreements by counterparty which are subject to offset under a MSLA as of December 31, 2013:

LifePath Retirement Master Portfolio
Counterparty	Securities Loaned at Value		Cash Collateral Received1			Net Amount
Barclays Capital, Inc.	$	6,960,492	$	(6,960,492	)		—
Jefferies LLC		16,972,576		(16,972,576	)		—
UBS Securities LLC		413,523		(413,523	)		—
Total	$	24,346,591	$	(24,346,591	)		—
LifePath 2020 Master Portfolio
Counterparty	Securities Loaned at Value		Cash Collateral Received1			Net Amount
Barclays Capital, Inc.	$	12,699,180	$	(12,699,180	)		—
Goldman Sachs & Co.		6,724,800		(6,724,800	)		—
Jefferies LLC		5,158,595		(5,158,595	)		—
Morgan Stanley		3,922,800		(3,922,800	)		—
UBS Securities LLC		11,664,000		(11,664,000	)		—
Total	$	40,169,375	$	(40,169,375	)		—
LifePath 2030 Master Portfolio
Counterparty	Securities Loaned at Value		Cash Collateral Received1			Net Amount
Barclays Capital, Inc.	$	12,783,744	$	(12,783,744	)		—
Goldman Sachs & Co.		10,490,688		(10,490,688	)		—
Jefferies LLC		1,227,636		(1,227,636	)		—
JP Morgan Securities LLC		2,130,635		(2,130,635	)		—
UBS Securities LLC		34,512,389		(34,512,389			—
Total	$	61,145,092	$	(61,145,092	)		—
LifePath 2040 Master Portfolio
Counterparty	Securities Loaned at Value		Cash Collateral Received1			Net Amount
Barclays Capital, Inc.	$	12,906,216	$	(12,906,216	)		—
Citigroup Global Markets, Inc.		166,212		(166,212	)		—
UBS Securities LLC		20,233,096		(20,233,096	)		—
Total	$	33,305,524	$	(33,305,524	)		—
LifePath 2050 Master Portfolio
Counterparty	Securities Loaned at Value		Cash Collateral Received1			Net Amount
Barclays Capital, Inc.	$	5,450,004	$	(5,450,004	)		—

¹  Excess of collateral received from the individual counterparty is not shown for financial reporting purposes. Collateral has been received in connection with securities lending agreements as follows:

LifePath Retirement Master Portfolio	$	24,986,975
LifePath 2020 Master Portfolio	$	41,090,000
LifePath 2030 Master Portfolio	$	62,378,665
LifePath 2040 Master Portfolio	$	34,078,580
LifePath 2050 Master Portfolio	$	5,560,275

The risks of securities lending also include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate this risk the LifePath Master Portfolios benefit from a borrower default indemnity provided by

BlackRock. Blackrock’s indemnity allows for full replacement of the securities lent. A LifePath Master Portfolio also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the year ended December 31, 2013, any securities on loan were collateralized by cash.

4. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock.

MIP, on behalf of the LifePath Master Portfolios, entered into an Investment Advisory Agreement with BlackRock Fund Advisors (“BFA” or the “Manager”), the LifePath Master Portfolios’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory services. The Manager is responsible for the management of each LifePath Master Portfolio’s investments and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each LifePath Master Portfolio. For such services, each LifePath Master Portfolio paid BFA a monthly fee based on a percentage of such LifePath Master Portfolio’s average daily net assets. Each LifePath Master Portfolio pays BFA at an annual rate of 0.35% of the average daily net assets of each respective LifePath Master Portfolio.

MIP, on behalf of the LifePath Master Portfolios, entered into an Administration Agreement with BlackRock Advisors, LLC (“BAL” or the “Administrator”), which has agreed to provide general administration services (other than investment advice and related portfolio activities). BAL, in consideration thereof, has agreed to bear all of the LifePath Master Portfolios’ and MIP’s ordinary operating expenses excluding, generally, investment advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the LifePath Master Portfolios.

From time to time, BAL may waive such fees in whole or in part. Any such waiver will reduce the expenses of the LifePath Master Portfolio and, accordingly, have a favorable impact on its performance. BAL may delegate certain of its administration duties to sub-administrators.

BAL is not entitled to compensation for providing administration services to the LifePath Master Portfolios, for so long as BAL is entitled to compensation for providing administration services to corresponding feeder funds that invest substantially all of their assets in the LifePath Master Portfolios, or BAL (or an affiliate) receives investment advisory fees from the LifePath Master Portfolios.

The fees and expenses of MIP’s trustees who are not “interested persons” of MIP, as defined in the 1940 Act (“Independent Trustees”), counsel to the Independent Trustees and MIP’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the LifePath Master Portfolios. BFA had contractually agreed to waive investment advisory fees charged to each LifePath Master Portfolio in an amount equal to investment advisory fees and administration fees, if any, received by BFA, BAL or previous affiliates,

254

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NOTES TO FINANCIAL STATEMENTS (Continued)

from each affiliated investment company in which the LifePath Master Portfolios invest through April 30, 2014. BFA has also contractually agreed to cap the expenses of the LifePath Master Portfolios at the rate at which the LifePath Master Portfolios pay an advisory fee to BFA by providing an offsetting credit against the investment advisory fees paid by the LifePath Master Portfolios in an amount equal to the independent expenses. These contractual waivers are effective through April 30, 2023. The amounts of the waivers, if any, are shown as fees waived by Manager in the Statements of Operations.

The LifePath Master Portfolios received an exemptive order from the SEC permitting them, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and have retained BTC as the securities lending agent. BTC may, on behalf of the LifePath Master Portfolios, invest cash collateral received by the LifePath Master Portfolios for such loans, in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. The market value of securities on loan and the value of the related collateral, if applicable, are shown in the Statements of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BTC, if any, is disclosed in the Schedules of Investments. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates paid to, or fees paid by, borrowers of securities. The LifePath Master Portfolios retain 65% of securities lending income and pay a fee to BTC equal to 35% of such income. The LifePath Master Portfolios benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC does not receive any fees for managing the cash collateral. The share of income earned by each LifePath Master Portfolio is shown as securities lending — affiliated — net in the Statements of Operations. For the year ended December 31, 2013, BTC received securities lending agent fees related to securities lending activities for the LifePath Master Portfolios as follows:

LifePath Retirement Master Portfolio	$	40,131
LifePath 2020 Master Portfolio	$	88,825
LifePath 2030 Master Portfolio	$	99,108
LifePath 2040 Master Portfolio	$	84,148
LifePath 2050 Master Portfolio	$	15,318

Each LifePath Master Portfolio may invest its positive cash balances in certain money market funds managed by the Manager or an affiliate. The income earned on these temporary cash investments is included in income-affiliated in the Statements of Operations.

During the year ended December 31, 2013, the LifePath Master Portfolios received payments from an affiliate to compensate for foregone securities lending revenue, which is shown as Other income – affiliated in the Statement of Operations.

Certain officers and/or trustees of MIP are officers and/or directors of BlackRock or its affiliates.

5. Purchases and Sales:

Purchases and sales of investments in the Underlying Funds and Underlying Master Portfolios and excluding short-term securities for the year ended December 31, 2013 were as follows:

	Purchases		Sales
LifePath Retirement Master Portfolio	$	267,549,052	$	265,561,732
LifePath 2020 Master Portfolio	$	556,642,058	$	499,561,618
LifePath 2030 Master Portfolio	$	647,555,300	$	541,153,733
LifePath 2040 Master Portfolio	$	572,118,669	$	495,028,844
LifePath 2050 Master Portfolio	$	184,787,380	$	96,746,230

6. Bank Borrowings:

MIP, on behalf of the LifePath Master Portfolios, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $800 million credit agreement with a group of lenders, under which a LifePath Master Portfolio may borrow to fund shareholder redemptions. The agreement expires in April 2014. Excluding commitments designated for a certain individual fund, other Participating Funds, including the Lifepath Master Portfolios, can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.065% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) the one-month London Interbank Offered Rate plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. Participating Funds paid administration and arrangement fees, which, along with commitment fees, were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. The Lifepath Master Portfolios did not borrow under the credit agreement during the year ended December 31, 2013.

7. Market and Credit Risk:

In the normal course of business, the LifePath Master Portfolios invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the LifePath Master Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the LifePath Master Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the LifePath Master Portfolios may be exposed to counterparty credit risk, or the risk that an entity with which the LifePath Master Portfolios have unsettled or open transactions may fail to or be unable to perform on its commitments. The LifePath Master Portfolios manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the LifePath Master Portfolios to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The

255

MASTER INVESTMENT PORTFOLIO

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NOTES TO FINANCIAL STATEMENTS (Concluded)

extent of the LifePath Master Portfolios’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the LifePath Master Portfolios.

8. Subsequent Events:

Management has evaluated the impact of all subsequent events on the LifePath Master Portfolios through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

256

MASTER INVESTMENT PORTFOLIO

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of Master Investment Portfolio and the Interestholders of LifePath Retirement Master Portfolio, LifePath 2020 Master Portfolio, LifePath 2030 Master Portfolio, LifePath 2040 Master Portfolio and LifePath 2050 Master Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of LifePath Retirement Master Portfolio, LifePath 2020 Master Portfolio, LifePath 2030 Master Portfolio, LifePath 2040 Master Portfolio and LifePath 2050 Master Portfolio (the “Master Portfolios”), each a series of Master Investment Portfolio, at December 31, 2013, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the

responsibility of the Master Portfolios’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2013 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 18, 2014

257

MASTER INVESTMENT PORTFOLIO

MASTER PORTFOLIO INFORMATION

as of December 31, 2013

Active Stock Master Portfolio

Ten Largest Holdings	Percent of Long-Term Investments
Google, Inc., Class A		3	%
Microsoft Corp.		3
JPMorgan Chase & Co.		2
Comcast Corp, Class A		2
Mastercard, Inc.		2
Wells Fargo & Co.		2
Apple, Inc.		2
Citigroup, Inc.		2
Schlumberger Ltd.		1
AbbVie, Inc.		1

Sector Allocation	Percent of Long-Term Investments
Information Technology		21	%
Consumer Discretionary		15
Health Care		15
Financials		14
Industrials		12
Energy		10
Consumer Staples		5
Materials		5
Telecommunication Services		2
Utilities		1

For Master Portfolio compliance purposes, the Master Portfolio’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine sector sub-classifications for reporting ease.

Derivative Financial Instruments

The Master Portfolio may invest in various derivative financial instruments, including financial futures contracts and foreign currency exchange contracts, as specified in Note 4 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market and/or equity risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Master Portfolio’s ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require the Master Portfolio to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation the Master Portfolio can realize on an investment or may cause the Master Portfolio to hold an investment that it might otherwise sell. The Master Portfolio’s investments in these instruments are discussed in detail in the Notes to Financial Statements.

258

ACTIVE STOCK MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS

December 31, 2013

(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Aerospace & Defense — 4.0%
The Boeing Co.		179,665	$	24,522,476
Exelis, Inc.		259,892		4,953,541
Honeywell International, Inc.		34,980		3,196,123
Northrop Grumman Corp.		189,577		21,727,420
Precision Castparts Corp.		47,166		12,701,804
Raytheon Co. (a)		239,929		21,761,560
Rockwell Collins, Inc. (a)		80,700		5,965,344
Spirit Aerosystems Holdings, Inc., Class A (b)		86,801		2,958,178
United Technologies Corp.		173,482		19,742,252
				117,528,698
Airlines — 0.9%
Copa Holdings SA, Class A		24,326		3,894,836
Delta Air Lines, Inc.		43,610		1,197,967
United Continental Holdings, Inc. (a)(b)		543,586		20,563,858
				25,656,661
Auto Components — 1.2%
BorgWarner, Inc. (a)		183,060		10,234,885
Delphi Automotive PLC		65,054		3,911,697
Johnson Controls, Inc.		199,970		10,258,461
Lear Corp. (a)		129,338		10,472,498
TRW Automotive Holdings Corp. (b)		25,768		1,916,881
				36,794,422
Automobiles — 0.2%
Ford Motor Co.		52,120		804,212
General Motors Co. (b)		123,700		5,055,619
				5,859,831
Beverages — 1.1%
The Coca-Cola Co. (a)		504,265		20,831,187
Diageo PLC		319,340		10,576,221
				31,407,408
Biotechnology — 3.2%
Amgen, Inc.		221,763		25,316,464
Biogen Idec, Inc. (b)		39,740		11,117,265
Celgene Corp. (b)		77,801		13,145,257
Gilead Sciences, Inc. (a)(b)		334,141		25,110,696
Myriad Genetics, Inc. (a)(b)		8,943		187,624
Regeneron Pharmaceuticals, Inc. (b)		24,999		6,880,725
United Therapeutics Corp. (b)		115,365		13,045,474
				94,803,505
Capital Markets — 0.6%
The Bank of New York Mellon Corp.		6		210
The Goldman Sachs Group, Inc.		33,390		5,918,711
Morgan Stanley		321,743		10,089,860
State Street Corp. (a)		14,100		1,034,799
T. Rowe Price Group, Inc.		1,343		112,503
Waddell & Reed Financial, Inc., Class A (a)		32,031		2,085,859
				19,241,942
Chemicals — 2.7%
Akzo Nobel NV — ADR (a)		83,700		2,165,319
Ashland, Inc.		16,200		1,572,048
Celanese Corp., Series A		500		27,655
CF Industries Holdings, Inc.		25,190		5,870,278
The Dow Chemical Co.		213,040		9,458,976
E.I. du Pont de Nemours & Co.		174,220		11,319,073
Eastman Chemical Co.		87,420		7,054,794
LyondellBasell Industries NV, Class A		102,473		8,226,532

Common Stocks	Shares		Value
Chemicals (concluded)
Monsanto Co.		49,994	$	5,826,801
PPG Industries, Inc.		140,544		26,655,575
The Valspar Corp.		31,395		2,238,150
Westlake Chemical Corp.		387		47,241
				80,462,442
Commercial Banks — 3.0%
BOK Financial Corp.		15,451		1,024,710
Fifth Third Bancorp		328,300		6,904,149
Regions Financial Corp.		269,600		2,666,344
SunTrust Banks, Inc.		229,620		8,452,312
US Bancorp (a)		577,119		23,315,608
Wells Fargo & Co.		1,039,224		47,180,770
				89,543,893
Communications Equipment — 1.5%
Cisco Systems, Inc.		920,388		20,662,710
Motorola Solutions, Inc.		95,440		6,442,200
QUALCOMM, Inc.		209,703		15,570,448
Telefonaktiebolaget LM Ericsson — ADR (a)		190,900		2,336,616
				45,011,974
Computers & Peripherals — 2.6%
Apple, Inc.		83,869		47,059,735
EMC Corp.		785,350		19,751,552
Lexmark International, Inc., Class A (a)		2,630		93,418
NetApp, Inc. (a)		226,642		9,324,052
				76,228,757
Construction & Engineering — 0.2%
KBR, Inc.		164,500		5,245,905
Consumer Finance — 1.9%
American Express Co.		119,510		10,843,143
Capital One Financial Corp.		151,523		11,608,177
Discover Financial Services		582,915		32,614,094
				55,065,414
Containers & Packaging — 0.9%
Avery Dennison Corp. (a)		16,847		845,551
MeadWestvaco Corp.		111,070		4,101,815
Packaging Corp. of America		322,407		20,401,915
Rock-Tenn Co., Class A (a)		10,171		1,068,057
				26,417,338
Distributors — 0.0%
Genuine Parts Co. (a)		8,841		735,483
Diversified Consumer Services — 0.1%
Apollo Group, Inc., Class A (b)		3,080		84,145
Service Corp. International		116,667		2,115,173
Weight Watchers International, Inc. (a)		1,425		46,925
				2,246,243
Diversified Financial Services — 4.3%
Bank of America Corp.		714,790		11,129,280
Citigroup, Inc.		877,931		45,748,984
ING US, Inc.		79,633		2,799,100
IntercontinentalExchange Group, Inc.		18,420		4,143,026
JPMorgan Chase & Co.		882,387		51,601,992
Moody’s Corp.		59,476		4,667,082
The NASDAQ OMX Group, Inc. (a)		203,301		8,091,380
				128,180,844

Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:	ADR	American Depositary Receipts
	JPY	Japanese Yen
	USD	US Dollar

259

See Notes to Financial Statements.

ACTIVE STOCK MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Diversified Telecommunication Services — 1.0%
AT&T, Inc.		135,660	$	4,769,805
BCE, Inc.		29,540		1,278,787
Verizon Communications, Inc. (a)		345,363		16,971,138
Vivendi SA		223,159		5,880,579
				28,900,309
Electric Utilities — 0.6%
American Electric Power Co., Inc. (a)		143,765		6,719,576
Duke Energy Corp.		21,086		1,455,145
Edison International		54,920		2,542,796
FirstEnergy Corp. (a)		44,140		1,455,737
ITC Holdings Corp.		8,990		861,422
NextEra Energy, Inc.		35,280		3,020,674
Northeast Utilities		20,880		885,103
				16,940,453
Electrical Equipment — 0.8%
Eaton Corp. PLC		135,285		10,297,894
Rockwell Automation, Inc.		55,600		6,569,696
Roper Industries, Inc.		27,041		3,750,046
SolarCity Corp. (b)		57,824		3,285,560
				23,903,196
Electronic Equipment, Instruments &Components — 0.3%
Corning, Inc.		66,700		1,188,594
TE Connectivity Ltd.		118,900		6,552,579
				7,741,173
Energy Equipment & Services — 2.8%
FMC Technologies, Inc. (b)		78,119		4,078,593
Halliburton Co.		389,082		19,745,912
Oceaneering International, Inc.		172,500		13,606,800
Schlumberger Ltd.		488,774		44,043,425
				81,474,730
Food & Staples Retailing — 1.6%
CVS Caremark Corp.		479,525		34,319,604
The Kroger Co. (a)		310,184		12,261,574
Walgreen Co.		9,300		534,192
				47,115,370
Food Products — 1.1%
Bunge Ltd.		1,001		82,192
Kraft Foods Group, Inc.		180,972		9,758,010
Mead Johnson Nutrition Co.		27,011		2,262,442
Mondelez International, Inc., Class A		321,300		11,341,890
Unilever NV		194,540		7,826,344
WhiteWave Foods Co., Class A (b)		57,437		1,317,605
				32,588,483
Gas Utilities — 0.1%
AGL Resources, Inc. (a)		12,692		599,443
UGI Corp. (a)		53,400		2,213,964
				2,813,407
Health Care Equipment & Supplies — 2.2%
Abbott Laboratories		511,110		19,590,846
Baxter International, Inc.		111,822		7,777,220
Boston Scientific Corp. (b)		89,093		1,070,898
Edwards Lifesciences Corp. (b)		22,135		1,455,598
Hologic, Inc. (b)		17,300		386,655
Intuitive Surgical, Inc. (b)		19,566		7,514,909
Medtronic, Inc.		158,181		9,078,007
Sirona Dental Systems, Inc. (b)		82,368		5,782,234
St. Jude Medical, Inc.		100,800		6,244,560
Zimmer Holdings, Inc.		65,000		6,057,350
				64,958,277

Common Stocks	Shares		Value
Health Care Providers & Services — 2.7%
Aetna, Inc.		190,000	$	13,032,100
Cardinal Health, Inc. (a)		69,032		4,612,028
Catamaran Corp (b)		25,120		1,192,698
Envision Healthcare Holdings, Inc. (b)		23,500		834,720
Health Net, Inc. (b)		36,308		1,077,258
McKesson Corp.		174,790		28,211,106
Quest Diagnostics, Inc. (a)		144,900		7,757,946
Universal Health Services, Inc.		137,647		11,185,195
VCA Antech, Inc. (b)		170,256		5,339,228
WellPoint, Inc.		63,594		5,875,450
				79,117,729
Hotels, Restaurants & Leisure — 1.3%
Domino’s Pizza, Inc. (a)		76,408		5,321,817
Las Vegas Sands Corp.		119,110		9,394,206
McDonald’s Corp.		49,173		4,771,256
Melco Crown Entertainment Ltd. — ADR (a)(b)		84,797		3,325,738
Starbucks Corp.		138,459		10,853,801
Starwood Hotels & Resorts Worldwide, Inc.		2		159
Wynn Resorts Ltd.		31,003		6,021,093
				39,688,070
Household Durables — 0.3%
Garmin Ltd. (a)		8,246		381,130
Newell Rubbermaid, Inc. (a)		130,900		4,242,469
PulteGroup, Inc.		19,011		387,254
Whirlpool Corp.		20,111		3,154,612
				8,165,465
Household Products — 0.4%
Energizer Holdings, Inc. (a)		37,100		4,015,704
Kimberly-Clark Corp.		630		65,810
The Procter & Gamble Co.		96,003		7,815,604
				11,897,118
Independent Power Producers & Energy Traders — 0.2%
The AES Corp.		383,700		5,567,487
Industrial Conglomerates — 2.1%
3M Co.		238,000		33,379,500
General Electric Co.		977,660		27,403,810
				60,783,310
Insurance — 3.3%
ACE Ltd.		109,473		11,333,740
Aflac, Inc.		57,492		3,840,466
The Allstate Corp.		125,492		6,844,334
American International Group, Inc.		86,624		4,422,155
Aspen Insurance Holdings Ltd.		12,927		534,014
Berkshire Hathaway, Inc., Class B (b)		5,790		686,462
CNA Financial Corp.		77,850		3,338,986
Genworth Financial, Inc., Class A (a)(b)		266,300		4,135,639
Hartford Financial Services Group, Inc.		129,726		4,699,973
Kemper Corp.		3		123
Lincoln National Corp.		82,962		4,282,498
MetLife, Inc.		126,786		6,836,301
PartnerRe Ltd.		2,900		305,747
Prudential Financial, Inc.		247,280		22,804,162
The Travelers Cos., Inc. (a)		216,969		19,644,373
XL Group PLC		90,900		2,894,256
				96,603,229
Internet & Catalog Retail — 1.3%
Amazon.com, Inc. (b)		36,707		14,638,384
Expedia, Inc.		82,232		5,728,281
priceline.com, Inc. (b)		14,447		16,793,193
				37,159,858

260 See Notes to Financial Statements.

ACTIVE STOCK MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Internet Software & Services — 4.9%
AOL, Inc. (b)		57,600	$	2,685,312
eBay, Inc. (b)		88,993		4,884,826
Facebook, Inc. (b)		48,315		2,640,898
Google, Inc., Class A (b)		75,079		84,141,786
IAC/InterActiveCorp		25,656		1,762,311
LinkedIn Corp. (b)		38,665		8,383,732
SINA Corp. (a)(b)		79,077		6,662,237
VeriSign, Inc. (b)		57,033		3,409,433
Yahoo!, Inc. (b)		341,775		13,821,381
Yandex NV (b)		109,768		4,736,489
Yelp, Inc. (a)(b)		106,229		7,324,489
Youku Tudou, Inc. — ADR (a)(b)		104,252		3,158,836
				143,611,730
IT Services — 4.8%
Alliance Data Systems Corp. (a)(b)		110,834		29,141,584
Amdocs Ltd.		9,532		393,100
Automatic Data Processing, Inc.		3,941		318,472
Broadridge Financial Solutions, Inc.		12,130		479,378
Cognizant Technology Solutions Corp., Class A (b)		61,700		6,230,466
DST Systems, Inc.		126,510		11,479,517
International Business Machines Corp. (a)		67,660		12,690,986
Lender Processing Services, Inc.		2,749		102,758
Mastercard, Inc., Class A (a)		56,522		47,221,870
Science Applications International Corp.		5,813		192,236
Teradata Corp. (b)		140,070		6,371,784
Visa, Inc., Class A		102,130		22,742,308
The Western Union Co. (a)		167,680		2,892,480
				140,256,939
Leisure Equipment & Products — 0.0%
Polaris Industries, Inc.		4,463		649,991
Life Sciences Tools & Services — 0.7%
Agilent Technologies, Inc.		313,010		17,901,042
Life Technologies Corp. (b)		5,420		410,836
Quintiles Transnational Holdings, Inc. (b)		4,121		190,967
Waters Corp. (b)		13,715		1,371,500
				19,874,345
Machinery — 2.4%
AGCO Corp. (a)		33,781		1,999,497
CNH Industrial NV (a)(b)		133,743		1,517,983
Cummins, Inc.		99,570		14,036,383
Deere & Co.		149,120		13,619,130
Ingersoll-Rand PLC		215,190		13,255,704
Parker Hannifin Corp. (a)		92,700		11,924,928
Stanley Black & Decker, Inc. (b)		2,000		206,400
Timken Co.		10,375		571,351
Valmont Industries, Inc. (a)		41,476		6,184,901
WABCO Holdings, Inc. (a)(b)		91,390		8,536,740
				71,853,017
Marine — 0.1%
Matson, Inc.		77,594		2,025,979
Media — 5.8%
CBS Corp., Class B		89,715		5,718,434
Comcast Corp., Class A		951,665		49,453,272
Comcast Corp., Special Class A		370,100		18,460,588
DIRECTV (b)		95,214		6,578,335
Liberty Global PLC, Class A (b)		124,269		11,058,698
Lions Gate Entertainment Corp. (a)		43,491		1,376,925
Omnicom Group, Inc.		8,152		606,264
Regal Entertainment Group, Class A		100,011		1,945,214
Sirius XM Holdings, Inc. (a)(b)		2,024,420		7,065,226
Time Warner, Inc.		189,539		13,214,659
Twenty-First Century Fox, Inc., Class A		498,539		17,538,602
Viacom, Inc., Class B		166,821		14,570,146
The Walt Disney Co. (a)		302,929		23,143,776
				170,730,139

Common Stocks	Shares		Value
Metals & Mining — 0.5%
BHP Billiton Ltd. (a)		375,620	$	12,741,511
Reliance Steel & Aluminum Co.		13,400		1,016,256
				13,757,767
Multi-Utilities — 0.3%
Dominion Resources, Inc.		54,570		3,530,133
DTE Energy Co.		8,764		581,842
Public Service Enterprise Group, Inc.		61,070		1,956,683
Sempra Energy		19,210		1,724,289
Wisconsin Energy Corp.		21,620		893,771
				8,686,718
Multiline Retail — 0.1%
JC Penney Co., Inc. (a)(b)		3		27
Kohl’s Corp. (a)		32,400		1,838,700
Macy’s, Inc.		5,800		309,720
				2,148,447
Office Electronics — 0.3%
Xerox Corp. (a)		636,390		7,744,866
Oil, Gas & Consumable Fuels — 7.5%
Anadarko Petroleum Corp.		47,630		3,778,012
Antero Resources Corp. (b)		19,200		1,218,048
Apache Corp.		34,400		2,956,336
Cabot Oil & Gas Corp.		76,828		2,977,853
Chevron Corp.		134,375		16,784,781
Cimarex Energy Co.		4,659		488,776
Cobalt International Energy, Inc. (b)		142,500		2,344,125
Concho Resources, Inc. (b)		24,674		2,664,792
ConocoPhillips		120,920		8,542,998
Devon Energy Corp.		59,617		3,688,504
EOG Resources, Inc.		32,594		5,470,577
Exxon Mobil Corp.		189,091		19,136,009
Gulfport Energy Corp. (b)		52,800		3,334,320
Laredo Petroleum, Inc. (a)(b)		127,653		3,534,711
Marathon Oil Corp. (a)		656,972		23,191,112
Marathon Petroleum Corp. (a)		358,216		32,859,154
Occidental Petroleum Corp.		172,037		16,360,719
PBF Energy, Inc. (a)		231,933		7,296,612
Phillips 66		110,010		8,485,071
SM Energy Co. (a)		17,533		1,457,168
Spectra Energy Corp.		114,360		4,073,503
Suncor Energy, Inc.		665,220		23,315,961
Tesoro Corp.		6,128		358,488
Total SA — ADR		286,770		17,570,398
Valero Energy Corp.		202,026		10,182,110
				222,070,138
Paper & Forest Products — 0.6%
Domtar Corp.		5,215		491,983
International Paper Co.		338,078		16,575,964
				17,067,947
Personal Products — 0.4%
The Estee Lauder Cos., Inc., Class A		70,457		5,306,821
Herbalife Ltd. (a)		2,691		211,782
Nu Skin Enterprises, Inc., Class A		45,540		6,294,539
				11,813,142
Pharmaceuticals — 6.1%
AbbVie, Inc.		687,714		36,318,176
Actavis PLC (b)		47,650		8,005,200
Allergan, Inc.		36,308		4,033,093
AstraZeneca PLC — ADR (a)		90,900		5,396,733
Bristol-Myers Squibb Co.		108,830		5,784,315
Eli Lilly & Co. (a)		409,146		20,866,446
Hospira, Inc. (b)		26,100		1,077,408
Johnson & Johnson		300,560		27,528,290
Merck & Co., Inc.		599,010		29,980,451
Pfizer, Inc.		761,119		23,313,075

261

See Notes to Financial Statements.

ACTIVE STOCK MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Pharmaceuticals (concluded)
Teva Pharmaceutical Industries Ltd. — ADR (a)		55,100	$	2,208,408
Valeant Pharmaceuticals International, Inc. (b)		75,345		8,845,503
Zoetis, Inc.		177,083		5,788,843
				179,145,941
Professional Services — 0.2%
Manpower, Inc.		18,610		1,597,855
Verisk Analytics, Inc., Class A (b)		59,535		3,912,640
				5,510,495
Real Estate Investment Trusts (REITs) — 0.8%
American Tower Corp.		38,540		3,076,263
Camden Property Trust		5,867		333,715
CBL & Associates Properties, Inc.		162,567		2,919,703
Equity Lifestyle Properties, Inc.		37,856		1,371,523
Equity One, Inc. (a)		6,230		139,801
Host Hotels & Resorts, Inc. (a)		347,252		6,750,579
Kimco Realty Corp. (a)		49,027		968,283
Potlatch Corp. (a)		52,711		2,200,157
Simon Property Group, Inc.		12,839		1,953,582
Ventas, Inc.		9,163		524,857
Weyerhaeuser Co.		130,310		4,113,887
WP Carey, Inc.		12,086		741,476
				25,093,826
Real Estate Management & Development — 0.1%
CBRE Group, Inc., Class A (b)		22,500		591,750
Jones Lang LaSalle, Inc. (a)		21,800		2,232,102
				2,823,852
Road & Rail — 1.0%
Canadian Pacific Railway Ltd.		19,561		2,959,970
Union Pacific Corp.		153,459		25,781,112
				28,741,082
Semiconductors & Semiconductor Equipment — 1.4%
Altera Corp.		135,760		4,416,273
Applied Materials, Inc.		357,050		6,316,215
Intel Corp.		597,150		15,502,014
KLA-Tencor Corp.		3,400		219,164
Maxim Integrated Products, Inc. (a)		223,208		6,229,735
NXP Semiconductor NV (b)		131,766		6,052,012
Skyworks Solutions, Inc. (b)		39,196		1,119,438
Teradyne, Inc. (a)(b)		88,200		1,554,084
				41,408,935
Software — 5.0%
Activision Blizzard, Inc.		180,573		3,219,616
Autodesk, Inc. (b)		193,754		9,751,639
Citrix Systems, Inc. (b)		46,527		2,942,833
Electronic Arts, Inc. (b)		16,787		385,094
Fortinet, Inc. (b)		34,844		666,566
Microsoft Corp. (a)		2,003,927		75,006,988
Nuance Communications, Inc. (a)(b)		86,151		1,309,495
Oracle Corp.		843,020		32,253,945
Rovi Corp. (b)		77,997		1,535,761
Splunk, Inc. (b)		81,131		5,571,266
Symantec Corp.		416,990		9,832,624

Common Stocks	Shares		Value
Software (concluded)
TIBCO Software, Inc. (b)		65,436	$	1,471,001
VMware, Inc., Class A (a)(b)		47,707		4,279,795
				148,226,623
Specialty Retail — 3.6%
CarMax, Inc. (b)		60,805		2,859,051
GameStop Corp., Class A (a)		119,847		5,903,663
The Home Depot, Inc.		120,450		9,917,853
Lowe’s Cos., Inc. (a)		615,179		30,482,119
Lumber Liquidators Holdings, Inc. (a)(b)		20,160		2,074,262
Murphy USA, Inc. (a)(b)		112,608		4,679,989
Ross Stores, Inc.		296,650		22,227,985
Sears Hometown and Outlet Stores, Inc. (b)		30,724		783,462
TJX Cos., Inc. (a)		375,775		23,948,141
Urban Outfitters, Inc. (b)		108,917		4,040,821
				106,917,346
Textiles, Apparel & Luxury Goods — 1.4%
Michael Kors Holdings Ltd. (b)		85,226		6,919,499
NIKE, Inc., Class B (a)		206,813		16,263,774
VF Corp.		293,180		18,276,841
				41,460,114
Tobacco — 0.9%
Lorillard, Inc. (a)		129,313		6,553,583
Philip Morris International, Inc.		154,085		13,425,426
Reynolds American, Inc.		130,108		6,504,099
				26,483,108
Trading Companies & Distributors — 0.3%
Air Lease Corp. (a)		193,734		6,021,253
MRC Global, Inc. (b)		119,393		3,851,618
United Rentals, Inc. (b)		6,021		469,337
				10,342,208
Water Utilities — 0.2%
American Water Works Co., Inc.		115,900		4,897,934
Wireless Telecommunication Services — 0.7%
Softbank Corp.		187,200		16,354,003
Telephone & Data Systems, Inc. (a)		160,548		4,138,927
				20,492,930
Total Long-Term Investments (Cost — $2,397,854,412) — 100.6%				2,959,683,983
Short-Term Securities
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.14% (c)(d)(e)		226,864,969		226,864,969
BlackRock Cash Funds: Prime, SL Agency Shares, 0.11% (c)(d)(e)		31,618,522		31,618,522
Total Short-Term Securities (Cost — $258,483,491) — 8.8%				258,483,491
Total Investments (Cost — $2,656,337,903*) — 109.4%				3,218,167,474
Liabilities in Excess of Other Assets — (9.4)%				(277,624,703	)
Net Assets — 100.0%			$	2,940,542,771

Notes to Schedule of Investments

* As of December 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	2,691,844,697
Gross unrealized appreciation	$	569,393,379
Gross unrealized depreciation		(43,070,602	)
Net unrealized appreciation	$	526,322,777

262 See Notes to Financial Statements.

ACTIVE STOCK MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(a) Security, or a portion of security, is on loan.

(b) Non-income producing security.

(c) All or a portion of security was purchased with the cash collateral from loaned securities.

(d) Investments in issuers considered to be an affiliate of the Master Portfolio during the year ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at December 31, 2012		Net Activity1		Shares Held at December 31, 2013		Income
BlackRock Cash Funds: Prime, SL Agency Shares		9,485,001		22,133,521		31,618,522	$	34,065
BlackRock Cash Funds: Institutional, SL Agency Shares		138,527,226		88,337,743		226,864,969	$	301,510

¹  Represents net shares purchased.

(e) Represents the current yield as of report date.

For Master Portfolio compliance purposes, the Master Portfolio‘s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

· Financial futures contracts as of December 31, 2013 were as follows:

Contracts Purchased	Issue	Exchange		Expiration		Notional Value		Unrealized Appreciation
147	S&P 500 E-Mini Index		Chicago Mercantile		March 2014	$	13,532,085	$	469,687

· Foreign currency exchange contracts as of December 31, 2013 were as follows:

Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation
USD	5,874,737		JPY	606,575,419	Citibank NA		2/28/14	$	113,363
USD	1,243,098		JPY	129,317,652	JPMorgan Chase Bank NA		2/28/14		14,814
USD	5,005,326		JPY	512,510,346	UBS AG		2/28/14		137,401
Total								$	265,578

· Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

· Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master Portfolio has the ability to access

· Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

· Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master Portfolio’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Master Portfolio’s policy regarding valuation of investments and derivative financial instruments, please refer to Note 2 of the Notes to Financial Statements.

263

See Notes to Financial Statements.

ACTIVE STOCK MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Concluded)

December 31, 2013

The following tables summarize the Master Portfolio’s investments and derivative financial instruments categorized in the disclosure hierarchy as of December 31, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments1	$	2,914,131,669	$	45,552,314		—	$	2,959,683,983
Short-Term Securities		258,483,491		—		—		258,483,491
Total	$	3,172,615,160	$	45,552,314		—	$	3,218,167,474

	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments2
Assets:
Equity contracts	$	469,687		—		—	$	469,687
Foreign currency exchange contracts		—	$	265,578		—		265,578
Total	$	469,687	$	265,578		—	$	735,265

¹  See above Schedule of Investments for values in each sector.

²  Derivative financial instruments are financial futures contracts and foreign currency exchange contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

The carrying amount for certain of the Master Portfolio’s assets and/or liabilities approximates fair value for financial statement purposes. As of December 31, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Cash	$	493,829		—			—	$	493,829
Cash pledged for financial future contracts		740,000		—			—		740,000
Foreign currency at value		3,215		—			—		3,215
Liabilities:
Collateral on securities loaned at value		—	$	(204,575,541	)		—		(204,575,541	)
Total	$	1,237,044	$	(204,575,541	)		—	$	(203,338,497	)

There were no transfers between Level 1 and Level 2 during the year ended December 31, 2013.

264 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2013

	Active Stock Master Portfolio
Assets
Investments at value — unaffiliated1,2	$	2,959,683,983
Investments at value — affiliated3		258,483,491
Foreign currency at value (cost — $3,143)		3,215
Investments sold receivable		125,259,825
Cash		493,829
Cash pledged for financial future contracts		740,000
Dividends receivable		3,512,393
Unrealized appreciation on foreign currency exchange contracts		265,578
Securities lending income receivable — affiliated		228,041
Interest receivable		4,068
Variation margin receivable on financial future contracts		45,930
Prepaid expenses		10,748
Total assets		3,348,731,101
Liabilities
Collateral on securities loaned at value		204,575,541
Investments purchased payable		17,794,856
Trustees’ fees payable		22,526
Investment advisory fees payable		304,958
Administration fees payable		259,164
Professional fees payable		28,789
Withdrawals payable to investors		185,114,575
Foreign taxes payable		87,921
Total liabilities		408,188,330
Net Assets	$	2,940,542,771
Net Assets Consist of
Investors’ capital	$	2,377,978,025
Net unrealized appreciation/depreciation		562,564,746
Net Assets	$	2,940,542,771
1 Investments at cost — unaffiliated	$	2,397,854,412
2 Securities loaned at value	$	200,666,325
3 Investments at cost — affiliated	$	258,483,491

265

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENTS OF OPERATIONS

Year Ended December 31, 2013

	Active Stock Master Portfolio
Investment Income
Dividends	$	51,894,367
Foreign taxes withheld		(818,648	)
Securities lending — affiliated — net		220,406
Interest — affiliated		115,170
Other income — affiliated		2,267,346
Total income		53,678,641
Expenses
Investment advisory		7,320,195
Administration		3,010,168
Professional		48,871
Independent Trustees		94,687
Total expenses		10,473,921
Less fees waived by Manager		(3,454,743	)
Total expenses after fees waived		7,019,178
Net investment income		46,659,463
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		497,807,519
Financial futures contracts		5,598,435
Foreign currency transactions		(59,348	)
		503,346,606
Net change in unrealized appreciation/depreciation on:
Investments		331,652,372
Financial futures contracts		496,893
Foreign currency translations		265,780
		332,415,045
Total realized and unrealized gain		835,761,651
Net Increase in Net Assets Resulting from Operations	$	882,421,114

266 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS

	Active Stock Master Portfolio
	Year Ended December 31,
Increase (Decrease) in Net Assets:	2013			2012
Operations
Net investment income	$	46,659,463		$	57,010,755
Net realized gain		503,346,606			210,331,039
Net change in unrealized appreciation/depreciation		332,415,045			147,479,020
Net increase in net assets resulting from operations		882,421,114			414,820,814
Capital Transactions
Proceeds from contributions		704,884,041			3,136,934,911
Value of withdrawals		(1,439,579,901	)		(3,476,187,910	)
Net decrease in net assets derived from capital transactions		(734,695,860	)		(339,252,999	)
Net Assets
Total increase in net assets		147,725,254			75,567,815
Beginning of year		2,792,817,517			2,717,249,702
End of year	$	2,940,542,771		$	2,792,817,517

267

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

FINANCIAL HIGHLIGHTS

	Active Stock Master Portfolio
	Year Ended December 31,
	2013		2012		2011		2010		2009
Total Investment Return
Total investment return		34.02%		15.55%		2.20%		11.04%		24.86%
Ratios to Average Net Assets
Total expenses		0.35%		0.35%		0.35%		0.35%		0.35%
Total expenses after fees waived		0.23%		0.26%		0.27%		0.29%		0.30%
Net investment income		1.55%		2.03%		1.70%		1.50%		1.99%
Supplemental Data
Net assets, end of year (000)	$	2,940,543	$	2,792,818	$	2,717,250	$	2,513,424	$	1,838,453
Portfolio turnover		153%		120%		275%		120%		149%

268 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

ACTIVE STOCK MASTER PORTFOLIO

NOTES TO FINANCIAL STATEMENTS

1. Organization:

Active Stock Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio (“MIP”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. MIP is organized as a Delaware statutory trust.

2. Significant Accounting Policies:

The Master Portfolio’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Master Portfolio:

Valuation: US GAAP defines fair value as the price the Master Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Master Portfolio determines the fair value of its financial instruments at market value using independent dealers or pricing services under policies approved by the Board of Trustees of MIP (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Master Portfolio for all financial instruments.

Equity investments traded on a recognized securities exchange or the NASDAQ Stock Market (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Securities and other assets and liabilities denominated in foreign currencies are translated into US dollars using exchange rates determined as of the close of business on the New York Stock Exchange (“NYSE”). Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

In the event that application of these methods of valuation result in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its

delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that the Master Portfolio might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. The market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Master Portfolio’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Master Portfolio’s net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to affect the value of such instruments materially, those instruments may be Fair Value Assets and valued at their fair value, as determined in good faith by the Global Valuation Committee, or its delegate, using a pricing service and/or policies approved by the Board. Each business day, the Master Portfolio uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.

Foreign Currency: The Master Portfolio’s books and records are maintained in US dollars. Purchases and sales of investment securities

269

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NOTES TO FINANCIAL STATEMENTS (Continued)

are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, the Master Portfolio investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Master Portfolio does not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Master Portfolio reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components may be treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases where the Master Portfolio enters into certain investments (e.g., financial futures and foreign currency contracts), that would be “senior securities” for 1940 Act purposes, the Master Portfolio may segregate or designate on its books and records cash or liquid securities having a market value at least equal to the amount of the Master Portfolio’s future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Master Portfolio may deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-divided dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Master Portfolio is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Income Taxes: The Master Portfolio is classified as a partnership for federal income tax purposes. As such, the investor in the Master Portfolio is treated as the owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the Master Portfolio. Therefore, no federal income tax provision is required. It is intended that the Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Master Portfolio files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Master Portfolio’s US federal tax returns remains open for each of the four years ended December 31, 2013. The statutes of limitations on the Master Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Master Portfolio’s facts and circumstances and does not believe there are any uncertain tax positions that require recognition of a tax liability.

Other: Expenses directly related to the Master Portfolio are charged to the Master Portfolio. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods.

3. Securities and Other Investments:

Securities Lending: The Master Portfolio may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral. The initial collateral received by the Master Portfolio should have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Master Portfolio and any additional required collateral is delivered to the Master Portfolio on the next business day. Securities lending income, as disclosed in the Statement of Operations , represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Master Portfolio earns dividend or interest income on the securities loaned but does not receive interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of securities on loan and the value of the related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value, and collateral on securities loaned at value, respectively. The cash collateral invested by the securities lending agent, BlackRock Institutional Trust Co., N.A. (“BTC”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Master Portfolio under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Master Portfolio, as lender, would offset the market value of the collateral received against the market

270

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NOTES TO FINANCIAL STATEMENTS (Continued)

value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of a MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and the Master Portfolio can reinvest cash collateral, or, upon an event of default, resell or repledge the collateral.

The following table is a summary of the Master Portfolio’s securities lending agreements by counterparty which are subject to offset under a MSLA as of December 31, 2013:

Counterparty	Securities Loaned at Value		Cash Collateral Received1			Fair Value of Non-cash Collateral Received		Net Amount2
Barclays Capital, Inc.	$	2,344,443	$	(2,344,443	)		—		—
BNP Paribas Prime Brokerage, Inc.		144,976		(144,976	)		—		—
Citigroup Global Markets, Inc.		21,386,657		(21,386,657	)		—		—
Credit Suisse Securities (USA) LLC	$	11,039,900	$	(11,039,900	)		—		—
Deutsche Bank Securities, Inc.		14,958,965		(14,958,965	)		—		—
Goldman Sachs & Co.		19,922,886		(19,922,886	)		—		—
Jefferies LLC		7,958,911		(7,958,911	)		—		—
JP Morgan Clearing Corp.		80,374,379		(80,374,379	)		—		—
Merrill Lynch, Pierce, Fenner & Smith Inc.		26,950,084		(26,950,084	)		—		—
Mizuho Securities USA, Inc.		145,120		(145,120	)		—		—
Morgan Stanley & Co. LLC		13,667,034		(13,667,034	)		—		—
Nomura Securities International, Inc.		330,228		(327,600	)		—	$	2,628
State Street Bank & Trust Co.		22,412		(22,412	)		—		—
UBS Securities LLC		1,420,330		(1,420,330	)		—		—
Total	$	200,666,325	$	(200,663,697	)		—	$	2,628

¹  Collateral with a value of $204,575,541 has been received in connection with securities lending agreements. Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

²  The market value of loaned securities is determined as of 12/31/13. Additional collateral is delivered to the Master Portfolio on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty.

The risks of securities lending also include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate this risk the Master Portfolio benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities lent. The Master Portfolio also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the year ended December 31, 2013, any securities on loan were collateralized by cash.

4. Derivative Financial Instruments:

The Master Portfolio engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Master

Portfolio and/or to economically hedge its exposure to certain risks such as equity risk or foreign currency exchange rate risk. These contracts may be transacted on an exchange or OTC.

Financial Futures Contracts: The Master Portfolio purchases and/or sells financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk). Financial futures contracts are agreements between the Master Portfolio and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date.

Upon entering into a financial futures contract, the Master Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited, if any, is recorded on the Statement of Assets and Liabilities as cash pledged for financial futures contracts. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin. Variation margin is recorded by the Master Portfolio as unrealized appreciation or depreciation and, if applicable, as a receivable or payable for variation margin in the Statement of Asset and Liabilities.

When the contract is closed, the Master Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest or foreign currency exchange rates and the underlying assets.

Foreign Currency Exchange Contracts: The Master Portfolio enters into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from, foreign currencies (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by the Master Portfolio, help to manage the overall exposure to the currencies in which some of the investments held by the Master Portfolio are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Master Portfolio as an unrealized gain or loss. When the contract is closed, the Master Portfolio records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies.

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NOTES TO FINANCIAL STATEMENTS (Continued)

The following is a summary of the Master Portfolio’s derivative financial instruments categorized by risk exposure:

Fair Values of Derivative Financial Instruments as of December 31, 2013
Derivative Assets
	Statement of Assets and Liabilities Location	Value
Equity contracts	Net unrealized appreciation/depreciation1	$	469,687
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts		265,578
Total		$	735,265

¹  Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statement of Operations Year Ended December 31, 2013
	Net Realized Gain from
Equity contracts:
Financial futures contracts	$	5,598,435
Foreign currency exchange contracts:
Foreign currency transactions		90,190
Total	$	5,688,625
	Net Change in Unrealized Appreciation/Depreciation on
Equity Contracts:
Financial futures contracts	$	496,893
Foreign currency exchange contracts:
Foreign currency transactions		265,570
Total	$	762,463

For the year ended December 31, 2013, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		313
Average notional value of contracts purchased	$	25,672,159
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		1
Average number of contracts — US dollars sold		1
Average US dollar amounts purchased	$	3,033,675
Average US dollar amounts sold	$	302,243

Counterparty Credit Risk: A derivative contract may suffer a mark to market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

The Master Portfolio’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Master Portfolio.

With exchange traded futures, there is less counterparty credit risk to the Master Portfolio since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. Credit risk still exists in exchange traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or

goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated pro rata across all the clearing broker’s customers, potentially resulting in losses to the Master Portfolio.

In order to better define its contractual rights and to secure rights that will help the Master Portfolio mitigate its counterparty risk, the Master Portfolio may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Master Portfolio and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Master Portfolio may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Master Portfolio’s net assets decline by a stated percentage or the Master Portfolio fails to meet the terms of its ISDA Master Agreements, which would cause the Master Portfolio to accelerate payment of any net liability owed to the counterparty.

Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Master Portfolio and the counterparty.

Cash collateral that has been pledged to cover obligations of the Master Portfolio and cash collateral received from the counterparty, if any, is reported separately on the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Master Portfolio, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g. $500,000) before a transfer is required, which is determined at the close of business of the Master Portfolio and additional required collateral is delivered to/pledged by the Master Portfolio on the next business day. Typically, the Master Portfolio and counterparties are permitted to sell, re-pledge or use the collateral they receive. To the extent amounts due to the Master Portfolio from its counterparties are not fully collateralized, contractually or otherwise, the Master Portfolio bears the risk of loss from counterparty non-performance. The Master Portfolio attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

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NOTES TO FINANCIAL STATEMENTS (Continued)

For financial reporting purposes, the Master Portfolio does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

At December 31, 2013, the Master Portfolio’s derivative assets and liabilities (by type) on a gross basis are as follows:

	Assets			Liabilities
Derivative Financial Instruments:
Financial futures contracts	$	45,930			—
Foreign currency exchange contracts		265,578			—
Total derivative assets and liabilities in the Statement of Assets and Liabilities		311,508			—
Derivatives not subject to a master netting agreement or similar agreement (“MNA”)		(45,930	)		—
Total assets and liabilities subject to a MNA		265,578			—

The following table presents the Master Portfolio’s derivative assets by counterparty net of amounts available for offset under a MNA and net of the related collateral received by the Master Portfolio as of December 31, 2013:

Counterparty	Derivative Assets Subject to a MNA by Counterparty			Derivatives Available for Offset1		Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets2
Citibank N.A.		$	113,363		—		—		—		$	113,363
JP Morgan Chase Bank N.A.			14,814		—		—		—			14,814
UBS AG			137,401		—		—		—			137,401
Total		$	265,578		—		—		—		$	265,578

¹  The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to MNA.

²  Net amount represents the net amount receivable from the counterparty in the event of default.

5. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock.

MIP, on behalf of the Master Portfolio, entered into an Investment Advisory Agreement with BlackRock Fund Advisors (“BFA” or the “Manager”), the Master Portfolio’s investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory services. The Manager is responsible for the management of the Master Portfolio’s investments and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Master Portfolio. For such services, the Master Portfolio pays the Manager a monthly fee based on a percentage of the Master Portfolio’s average daily net assets at the following annual rates:

Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		0.25	%
$1 Billion — $3 Billion		0.24	%
$3 Billion — $5 Billion		0.23	%
$5 Billion — $10 Billion		0.22	%
Greater than $10 Billion		0.21	%

MIP, on behalf of the Master Portfolio, entered into an Administration Agreement with BlackRock Advisors, LLC (“BAL” or the “Administrator”),

which has agreed to provide general administration services (other than investment advice and related portfolio activities). BAL, in consideration thereof, has agreed to bear all of the Master Portfolio’s and MIP’s ordinary operating expenses excluding, generally, investment advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the Master Portfolio. BAL is entitled to receive for these administration services an annual fee of 0.10% based on the average daily net assets of the Master Portfolio.

From time to time, BAL may waive such fees in whole or in part. Any such waiver will reduce the expenses of the Master Portfolio and, accordingly, have a favorable impact on its performance. BAL may delegate certain of its administration duties to sub-administrators.

The fees and expenses of MIP’s trustees who are not “interested persons” of MIP, as defined in the 1940 Act (“Independent Trustees”), counsel to the Independent Trustees and MIP’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Master Portfolio. BAL voluntarily agreed to waive a portion of its administration and advisory fees paid by the Master Portfolio in an amount sufficient to maintain the advisory fee payable by each of the LifePath Master Portfolios at an annual rate of 0.35% based on the average daily net assets. This arrangement is voluntary and may be terminated by BAL at any time. With respect to the independent expenses discussed above, BAL has contractually agreed to provide an offsetting credit against the administration fees paid by the Master Portfolio in an amount equal to the independent expenses, through April 30, 2014. The amounts of the waivers and offsetting credits are shown as fees waived by the Manager in the Statement of Operations.

The Master Portfolio received an exemptive order from the SEC permitting it, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BTC as the securities lending agent. BTC may, on behalf of the Master Portfolio, invest cash collateral received by the Master Portfolio for such loans, in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. The market value of securities on loan and the value of the related collateral, if applicable, are shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BTC, if any, is disclosed in the Schedule of Investments. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates paid to, or fees paid by, borrowers of securities. The Master Portfolio retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Master Portfolio benefits from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC does not receive any fees for managing the cash collateral. The share of income earned by the Master Portfolio is shown as securities lending – affiliated – net in the Statement of Operations. For the year ended December 31, 2013, BTC received $51,423 in securities lending agent fees related to securities lending activities for the Master Portfolio.

273

MASTER INVESTMENT PORTFOLIO

ACTIVE STOCK MASTER PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (Concluded)

During the year ended December 31, 2013, the Master Portfolio recorded a payment from an affiliate to compensate for foregone securities lending revenue, which is shown as Other income – affiliated in the Statement of Operations.

The Master Portfolio may invest its positive cash balances in certain money market funds managed by the Manager or an affiliate. The income earned on these temporary cash investments is included in income-affiliated in the Statement of Operations.

Certain officers and/or trustees of MIP are officers and/or directors of BlackRock or its affiliates.

The Master Portfolio may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment advisor, common officers or common trustees. For the year ended December 31, 2013, the purchase and sale transactions with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were $650,422 and $1,682,488, respectively.

6. Purchases and Sales:

Purchases and sales of investments excluding short-term securities for the year ended December 31, 2013, were $4,424,560,465 and $4,996,139,705, respectively.

7. Bank Borrowings:

MIP, on behalf of the Master Portfolio, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $800 million credit agreement with a group of lenders, under which the Master Portfolio may borrow to fund shareholder redemptions. The agreement expires in April 2014. Excluding commitments designated for a certain individual fund, other Participating Funds, including the Master Portfolio, can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.065% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) the one-month London Interbank Offered Rate plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. Participating Funds paid administration and arrangement fees, which, along with commitment fees, were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. The Master Portfolio did not borrow under the credit agreement during the year ended December 31, 2013.

8. Concentration, Market and Credit Risk:

In the normal course of business, the Master Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Master Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Master Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate

and price fluctuations. Similar to issuer credit risk, the Master Portfolio may be exposed to counterparty credit risk, or the risk that an entity with which the Master Portfolio has unsettled or open transactions may fail to or be unable to perform on its commitments. The Master Portfolio manages counterparty credit risk by entering into transactions only with counterparties that it believes has the financial resources to honor its obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Master Portfolio to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Master Portfolio’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by its value recorded in the Statement of Assets and Liabilities, less any collateral held by the Master Portfolio.

As of December 31, 2013, the Master Portfolio invested a significant portion of its assets in securities in the Information Technology sector. Changes in economic conditions affecting the Information Technology sector would have a greater impact on the Master Portfolio and could affect the value, income and/or liquidity of positions in such securities.

9. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Master Portfolio through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

274

MASTER INVESTMENT PORTFOLIO

ACTIVE STOCK MASTER PORTFOLIO

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of Master Investment Portfolio and the Interestholders of Active Stock Master Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Active Stock Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio, at December 31, 2013, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Master Portfolio’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We

conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2013 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 18, 2014

275

MASTER INVESTMENT PORTFOLIO

MASTER PORTFOLIO INFORMATION

as of December 31, 2013

Corealpha Bond Master Portfolio

Portfolio Composition	Percent of Long-Term Investments
US Government Sponsored Agency Securities		42	%
Corporate Bonds		25
US Treasury Obligations		13
Asset-Backed Securities		11
Non-Agency Mortgage-Backed Securities		7
Foreign Agency Obligations		1
Taxable Municipal Bonds		1

Credit Quality Allocation1	Percent of Long-Term Investments
AAA/Aaa2		66	%
AA/Aa		5
A		16
BBB/Baa		11
BB/Ba		1
Not Rated		1

¹  Using the higher of Standard & Poor’s (“S&P”) or Moody’s Investors Service ratings.

²  Includes US Government Sponsored Agency Securities and US Treasury Obligations, which were deemed AAA/Aaa by the investment advisor.

276

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS

December 31, 2013

(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
Access Group, Inc., Class A2 (a):
Series 2005-1, 0.36%, 3/23/20	U	SD    2,534	$	2,527,233
Series 2005-A, 0.46%, 4/27/26		2,215		2,209,844
ACE Securities Corp. Home Equity Loan Trust (a):
Series 2005-AG1, Class A2D, 0.52%, 8/25/35		2,257		2,116,080
Series 2005-HE2, Class M3, 0.88%, 4/25/35		3,120		3,089,293
American Express Credit Account Master Trust, Series 2005-2, Class C, 0.65%, 10/16/17 (a)(b)		700		699,063
AmeriCredit Automobile Receivables Trust:
Series 2010-1, Class C, 5.19%, 8/17/15		1,358		1,372,773
Series 2010-1, Class D, 6.65%, 7/17/17		1,500		1,533,984
Series 2010-4, Class D, 4.20%, 11/08/16		2,600		2,680,265
Series 2011-1, Class C, 2.85%, 8/08/16		5,100		5,185,986
Series 2011-1, Class D, 4.26%, 2/08/17		3,895		4,049,624
Series 2011-2, Class D, 4.00%, 5/08/17		1,700		1,758,818
Series 2011-3, Class C, 2.86%, 1/09/17		1,900		1,939,153
Series 2012-1, Class D, 4.72%, 3/08/18		3,300		3,500,996
Ameriquest Mortgage Securities, Inc. Pass-Through Certificates, Series 2005-R6, Class A2, 0.36%, 8/25/35 (a)		233		230,331
Bear Stearns Asset-Backed Securities I Trust (a):
Series 2004-BO1, Class 2A1, 0.48%, 10/25/34		2,816		2,805,243
Series 2006-HE1, Class 1A3, 0.49%, 12/25/35		3,565		3,501,860
BNC Mortgage Loan Trust, Series 2007-4, Class A3A, 0.41%, 11/25/37 (a)		580		573,782
Carfinance Capital Auto Trust, Class A (b):
Series 2013-1A, 1.65%, 7/17/17		2,587		2,581,424
Series 2013-2A, 1.75%, 11/15/17		3,091		3,090,552
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2003-5, Class 1A4, 4.40%, 2/25/30		150		149,541
CIT Mortgage Loan Trust, Series 2007-1, Class 2A2, 1.41%, 10/25/37 (a)(b)		7,998		7,967,141

Asset-Backed Securities	Par (000)		Value
Citigroup Mortgage Loan Trust, Series 2007-WFH2, Class A2, 0.31%, 3/25/37 (a)		USD       456	$	455,433
Countrywide Asset-Backed Certificates (a):
Series 2005-4, Class MV1, 0.62%, 10/25/35		994		992,826
Series 2005-8, Class M1, 0.63%, 12/25/35		3,449		3,393,619
Series 2005-14, Class 3A2, 0.40%, 4/25/36		434		432,969
Series 2006-25, Class 2A2, 0.28%, 6/25/47		118		118,299
CPS Auto Receivables Trust, Series 2011-B, Class B, 5.68%, 9/17/18 (b)		1,343		1,395,961
Credit Suisse Mortgage Capital Certificates, Series 2006-CF3, Class A1, 0.43%, 10/25/36 (a)(b)		2,284		2,236,038
DT Auto Owner Trust, Series 2012-2A (b):
Class C, 2.72%, 4/17/17		2,300		2,318,598
Class D, 4.35%, 3/15/19		3,400		3,505,805
Ellington Loan Acquisition Trust, Series 2007-1, Class A2A1, 1.16%, 5/26/37 (a)(b)		20		19,656
Exeter Automobile Receivables Trust, Series 2013-1A, Class A, 1.29%, 10/16/17 (b)		3,210		3,215,868
First Franklin Mortgage Loan Trust (a):
Series 2004-FF10, Class A3, 1.24%, 9/25/34		58		58,228
Series 2005-FF2, Class M2, 0.82%, 3/25/35		1,269		1,263,146
Series 2005-FF4, Class M1, 0.59%, 5/25/35		3,455		3,397,922
Series 2005-FF10, Class A4, 0.48%, 11/25/35		1,238		1,169,345
First Investors Auto Owner Trust, Class A2 (b):
Series 2013-1A, 0.90%, 10/15/18		2,884		2,884,901
Series 2013-3A, 0.89%, 9/15/17		1,800		1,800,112
Ford Credit Floorplan Master Owner Trust A, Class D:
Series 2011-1, 2.96%, 2/15/16 (b)		3,000		3,021,192
Series 2012-1, 2.26%, 1/15/16 (a)		1,070		1,070,534
HLSS Servicer Advance Receivables Backed Notes (b):
Series 2012-T2, Class B2, 2.48%, 10/15/45		100		100,910
Series 2013-T1, Class A1, 0.90%, 1/15/44		12,200		12,200,000
Series 2013-T1, Class B1, 1.25%, 1/15/44		1,900		1,899,430

Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:	AUD	Australian Dollar	NOK	Norwegian Krone
	CAD	Canadian Dollar	NZD	New Zealand Dollar
	COP	Certificates of Participation	RB	Revenue Bonds
	EUR	Euro	REMICS	Real Estate Mortgage Investment Conduits
	EURIBOR	Euro Interbank Offered Rate	SEK	Swedish Krona
	GBP	British Pound	STRIPS	Separate Trading of Registered Interest and Principal Securities
	GO	General Obligation Bonds
	JPY	Japanese Yen	USD	US Dollar
	LIBOR	London Interbank Offered Rate

277

See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
Series 2013-T2, Class A2, 1.15%, 5/16/44	USD	5,200	$	5,172,960
Series 2013-T2, Class C2, 1.84%, 5/16/44		1,000		997,700
Series 2013-T2, Class D2, 2.39%, 5/16/44		750		747,225
Series 2013-T6, Class A, 1.29%, 9/15/44		3,000		2,998,200
Series 2013-T6, Class C, 1.73%, 9/15/44		900		899,190
HSI Asset Securitization Corp. Trust, Series 2006-OPT4, Class 2A5, 0.00%, 3/25/36 (c)		4,500		4,075,483
Iowa Student Loan Liquidity Corp., Series 2005-1, Class A2, 0.35%, 3/25/22 (a)		8,023		8,010,379
JPMorgan Mortgage Acquisition Trust, Series 2007-CH1, Class AV4, 0.29%, 11/25/36 (a)		1,439		1,423,202
KeyCorp Student Loan Trust, Class 2A3 (a):
Series 2005-A, 0.48%, 9/28/26		2,428		2,419,870
Series 2006-A, 0.44%, 6/27/29		10,934		10,778,054
Long Beach Mortgage Loan Trust, Series 2005-WL1, Class M2, 0.99%, 6/25/35 (a)		1,273		1,234,555
MASTR Asset-Backed Securities Trust, Series 2006-FRE1, Class A3, 0.34%, 12/25/35 (a)		999		994,226
Morgan Stanley ABS Capital I, Inc. Trust, Series 2005-HE3, Class M2, 0.68%, 7/25/35 (a)		855		845,921
The National Collegiate Student Loan Trust (a):
Series 2004-1, Class A2, 0.51%, 6/25/27		3,251		3,115,116
Series 2005-1, Class A3, 0.30%, 10/26/26		536		534,170
Series 2005-2, Class A3, 0.35%, 2/25/28		4,905		4,802,005
Series 2005-3, Class A3, 0.40%, 7/25/28		8,216		7,995,397
Series 2005-3, Class A4, 0.44%, 4/25/29		2,038		1,860,394
Series 2006-1, Class A3, 0.35%, 5/25/26		1,079		1,056,493
Series 2006-2, Class A2, 0.31%, 7/25/26		10,312		10,093,184
Series 2007-4, Class A2A3, 3.67%, 12/26/25		2,600		2,617,053
Nationstar Agency Advance Funding Trust, Series 2013-T1A, Class AT1, 1.00%, 2/15/45 (b)		1,650		1,641,238
Nationstar Mortgage Advance Receivable Trust, Series 2013-T1A, Class A1, 1.08%, 6/20/44 (b)		16,100		16,094,478
New Century Home Equity Loan Trust, Series 2005-3, Class A2D, 0.54%, 7/25/35 (a)		177		176,868
Nomura Home Equity Loan, Inc. Home Equity Loan Trust, Series 2006-WF1, Class A3, 0.30%, 3/25/36 (a)		1,212		1,207,336
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates (a):
Series 2004-MHQ1, Class M1, 1.21%, 12/25/34		232		232,675

Asset-Backed Securities	Par (000)		Value
Series 2004-WWF1, Class M2, 1.18%, 12/25/34		USD    2,000	$	1,995,412
Series 2005-WCW3, Class A2C, 0.54%, 8/25/35		4,494		4,366,919
RAAC Trust, Series 2006-SP3, Class A2, 0.33%, 8/25/36 (a)		666		665,883
RAMP Trust (a):
Series 2005-RS6, Class M1, 0.66%, 6/25/35		3,880		3,818,065
Series 2005-RZ4, Class A2, 0.42%, 11/25/35		388		385,371
RASC Trust, Series 2005-AHL3, Class A2, 0.40%, 11/25/35 (a)		3,594		3,476,679
Santander Consumer Acquired Receivables Trust (b):
Series 2011-S1A, Class D, 3.15%, 8/15/16		1,874		1,876,164
Series 2011-WO, Class C, 3.19%, 10/15/15		13,294		13,379,599
Santander Drive Auto Receivables Trust:
Series 2010-2, Class C, 3.89%, 7/17/17		1,188		1,207,536
Series 2010-3, Class C, 3.06%, 11/15/17		4,780		4,868,461
Series 2010-B, Class C, 3.02%, 10/17/16 (b)		7,065		7,117,455
Series 2011-1, Class C, 3.11%, 5/16/16		5,000		5,091,805
Series 2011-1, Class D, 4.01%, 2/15/17		14,720		15,301,234
Series 2011-3, Class B, 2.50%, 12/15/15		864		867,874
Series 2011-3, Class D, 4.23%, 5/15/17		3,900		4,073,070
Series 2011-4, Class C, 3.82%, 8/15/17		3,490		3,589,856
Series 2011-S2A, Class C, 2.86%, 6/15/17 (b)		28		27,753
Series 2011-S2A, Class D, 3.35%, 6/15/17 (b)		6		6,236
Series 2012-1, Class C, 3.78%, 11/15/17		300		310,175
Series 2012-2, Class B, 2.09%, 8/15/16		3,400		3,432,416
Series 2012-2, Class D, 3.87%, 2/15/18		2,000		2,099,250
Series 2012-3, Class B, 1.94%, 12/15/16		500		504,599
Series 2012-4, Class B, 1.83%, 3/15/17		2,800		2,826,236
Series 2012-6, Class B, 1.33%, 5/15/17		11,190		11,221,824
Series 2013-3 Class C, 1.81%, 4/15/19		2,590		2,572,714
Series 2013-A, Class B, 1.89%, 10/15/19 (b)		2,300		2,314,904
Series 2013-A, Class C, 3.12%, 10/15/19 (b)		4,100		4,204,997
SLC Private Student Loan Trust, Series 2009-AA, Class A, 4.75%, 6/15/33 (a)(b)		9,480		8,597,984
SLM Private Credit Student Loan Trust (a):
Series 2003-A, Class A2, 0.68%, 9/15/20		11,872		11,705,265
Series 2003-B, Class A2, 0.64%, 3/15/22		3,222		3,151,971

278 See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
Series 2004-A, Class A2, 0.44%, 3/16/20		USD    6,591	$	6,529,404
Series 2004-B, Class A2, 0.44%, 6/15/21		10,058		9,938,737
Series 2005-A, Class A2, 0.38%, 12/15/20		2,896		2,882,318
Series 2006-B, Class A3, 0.38%, 12/15/22		352		352,153
Series 2006-C, Class A3, 0.37%, 6/15/21		3,681		3,674,219
SLM Private Education Loan Trust (a)(b):
Series 2009-CT, Class 1A, 2.35%, 4/15/39		1,319		1,320,275
Series 2009-CT, Class 2A, 2.01%, 4/15/39		730		731,428
Series 2010-A, Class 1A, 3.20%, 5/16/44		4,401		4,570,630
Series 2011-A, Class A1, 1.16%, 10/15/24		12,135		12,171,557
Series 2011-B, Class A1, 1.01%, 12/16/24		1,571		1,573,580
Series 2011-C, Class A1, 1.56%, 12/15/23		1,774		1,786,209
Series 2012-A, Class A1, 1.56%, 8/15/25		2,832		2,859,295
Series 2012-B, Class A1, 1.26%, 12/15/21		6,638		6,668,389
Series 2012-C, Class A1, 1.26%, 8/15/23		3,322		3,340,615
Series 2012-D, Class A1, 1.21%, 6/15/23		2,434		2,444,105
Series 2012-E, Class A1, 0.91%, 10/16/23		14,008		14,016,892
Series 2013-A, Class A1, 0.76%, 8/15/22		7,319		7,307,534
Series 2013-B, Class A1, 0.81%, 7/15/22		10,565		10,560,011
Series 2013-C, Class A1, 1.02%, 2/15/22		5,597		5,612,029
Soundview Home Loan Trust, Series 2005-OPT4, Class 2A3, 0.42%, 12/25/35 (a)		4,578		4,408,506
Terwin Mortgage Trust, Series 2006-5, Class 2A2, 0.37%, 6/25/37 (a)(b)		4,825		4,630,049
Trade MAPS 1 Ltd., Series 2013-1A, Class A, 0.86%, 12/10/18 (a)(b)		9,690		9,707,830
Vericrest Opportunity Loan Trust XIX LLC, Series 2013-NPL5, Class A1, 3.63%, 4/25/55 (b)		2,493		2,483,765
Vericrest Opportunity Loan Trust XXI LLC, Series 2013-NPL7, Class A1, 3.63%, 11/25/53 (a)(b)		3,250		3,237,812
Westlake Automobile Receivables Trust, Series 2011-1A, Class B, 2.60%, 10/15/14 (b)		225		225,035
Total Asset-Backed Securities — 13.1%				440,627,234
Corporate Bonds
Aerospace & Defense — 0.7%
Crane Co.:
2.75%, 12/15/18		688		684,645
4.45%, 12/15/23		1,550		1,532,077
Eaton Corp., 0.95%, 11/02/15		3,000		3,011,220
L-3 Communications Corp.:
3.95%, 11/15/16		1,250		1,326,380
4.75%, 7/15/20		1,600		1,660,379

Corporate Bonds	Par (000)		Value
Aerospace & Defense (concluded)
4.95%, 2/15/21 (d)	USD	2,768	$	2,895,179
Lockheed Martin Corp.:
3.35%, 9/15/21		8,439		8,373,184
4.85%, 9/15/41 (d)		2,000		1,965,476
4.07%, 12/15/42		1,592		1,392,067
Raytheon Co., 4.70%, 12/15/41		2,100		2,037,979
				24,878,586
Air Freight & Logistics — 0.0%
United Parcel Service, Inc., 4.88%, 11/15/40		400		410,913
Airlines — 0.1%
United Airlines Pass-Through Trust, Series 2013-1, Class A, 4.30%, 2/15/27		4,400		4,477,000
Auto Components — 0.0%
Lear Corp., 4.75%, 1/15/23 (b)(d)		1,000		937,500
Beverages — 0.5%
Bottling Group LLC, 5.13%, 1/15/19 (d)		1,100		1,242,084
Diageo Capital PLC, 0.63%, 4/29/16		2,800		2,784,611
Diageo Finance BV, 3.25%, 1/15/15		2,000		2,057,374
Dr Pepper Snapple Group, Inc., 2.90%, 1/15/16		1,250		1,297,311
PepsiCo, Inc.:
7.90%, 11/01/18		2,000		2,499,960
2.75%, 3/01/23		3,400		3,146,911
4.88%, 11/01/40		1,000		999,952
3.60%, 8/13/42		2,000		1,646,214
				15,674,417
Biotechnology — 0.7%
Amgen, Inc., 2.30%, 6/15/16		3,240		3,340,528
Biogen Idec, Inc., 6.88%, 3/01/18		5,328		6,281,398
Celgene Corp.:
2.30%, 8/15/18		4,700		4,674,192
3.95%, 10/15/20		4,000		4,142,976
3.25%, 8/15/22		1,900		1,798,838
Gilead Sciences, Inc., 3.05%, 12/01/16		1,400		1,478,222
				21,716,154
Capital Markets — 2.4%
The Bank of New York Mellon Corp., 0.70%, 3/04/16		4,600		4,575,896
The Bear Stearns Cos. LLC:
5.70%, 11/15/14		800		835,617
6.40%, 10/02/17		2,500		2,901,402
Credit Suisse First Boston USA, Inc., 5.13%, 1/15/14 (d)		1,400		1,402,328
The Goldman Sachs Group, Inc.:
5.95%, 1/18/18		3,700		4,206,671
6.15%, 4/01/18		1,500		1,720,016
2.90%, 7/19/18		4,700		4,783,068
7.50%, 2/15/19		1,200		1,461,563
6.00%, 6/15/20		3,500		4,013,019
5.75%, 1/24/22		1,400		1,575,963
3.63%, 1/22/23 (d)		11,500		11,136,059
6.75%, 10/01/37		5,350		5,952,116
6.25%, 2/01/41		3,050		3,514,820

279

See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Capital Markets (concluded)
Morgan Stanley:
2.88%, 7/28/14	USD	3,400	$	3,444,016
6.00%, 4/28/15		1,400		1,491,048
1.75%, 2/25/16		3,000		3,040,275
6.25%, 8/28/17		1,500		1,716,344
5.63%, 9/23/19		10,000		11,366,860
3.75%, 2/25/23 (d)		7,500		7,297,987
4.10%, 5/22/23		2,900		2,806,478
6.38%, 7/24/42		2,700		3,162,459
				82,404,005
Chemicals — 0.7%
Ecolab, Inc., 1.00%, 8/09/15		2,900		2,909,022
LYB International Finance BV, 4.00%, 7/15/23		4,150		4,096,278
LyondellBasell Industries NV:
5.00%, 4/15/19		5,300		5,886,291
6.00%, 11/15/21 (d)		7,300		8,395,818
RPM International, Inc., 6.13%, 10/15/19		2,453		2,751,030
				24,038,439
Commercial Banks — 1.6%
ANZ New Zealand International Ltd., 1.13%, 3/24/16 (b)		2,500		2,495,193
Bank of Nova Scotia:
0.95%, 3/15/16		4,200		4,205,972
1.10%, 12/13/16		5,000		5,023,975
Discover Bank, 4.20%, 8/08/23		290		286,030
Export-Import Bank of Korea, 4.00%, 1/29/21		1,446		1,483,094
Fifth Third Bancorp, 0.90%, 2/26/16		2,900		2,884,752
HSBC Bank USA NA, 5.88%, 11/01/34		1,700		1,868,875
HSBC Holdings PLC, 6.50%, 9/15/37		1,700		2,010,651
Royal Bank of Canada:
0.85%, 3/08/16		4,600		4,593,601
1.13%, 7/21/17		19,650		19,647,465
US Bancorp, 2.20%, 11/15/16		4,000		4,130,796
Wachovia Bank NA, 6.00%, 11/15/17		5,400		6,231,060
				54,861,464
Commercial Services & Supplies — 0.0%
Catholic Health Initiatives, 4.35%, 11/01/42		1,600		1,388,005
Computer Services Software & Systems — 0.0%
Perrigo Co. PLC., 2.30%, 11/08/18 (b)		550		542,865
Computers & Peripherals — 0.3%
Apple, Inc., 2.40%, 5/03/23		4,400		3,956,528
EMC Corp., 2.65%, 6/01/20		4,500		4,407,210
Hewlett-Packard Co., 4.75%, 6/02/14		2,900		2,946,438
				11,310,176
Consumer Finance — 0.2%
Capital One Bank USA NA, 2.15%, 11/21/18		2,150		2,138,497

Corporate Bonds	Par (000)		Value
Consumer Finance (concluded)
Caterpillar Financial Services Corp., 0.70%, 2/26/16 (d)	USD	3,600	$	3,594,294
				5,732,791
Containers & Packaging — 0.1%
Packaging Corp. of America, 4.50%, 11/01/23		2,000		2,005,226
Rock-Tenn Co., 4.90%, 3/01/22		1,900		1,955,799
				3,961,025
Diversified Financial Services — 4.3%
American Express Credit Corp.:
2.75%, 9/15/15		2,600		2,690,628
2.38%, 3/24/17 (d)		3,000		3,083,634
American Honda Finance Corp., 1.13%, 10/07/16		4,635		4,653,943
Associates Corp. of North America, 6.95%, 11/01/18		964		1,146,976
Bank of America Corp.:
4.50%, 4/01/15 (d)		4,300		4,498,557
3.70%, 9/01/15 (d)		1,000		1,045,311
3.75%, 7/12/16		2,400		2,551,481
5.49%, 3/15/19		1,500		1,660,538
5.63%, 7/01/20		4,500		5,142,209
5.70%, 1/24/22		8,000		9,054,840
3.30%, 1/11/23		11,200		10,598,190
5.88%, 2/07/42		750		857,768
BNP Paribas SA, 2.40%, 12/12/18		4,000		4,002,544
Citigroup, Inc.:
6.38%, 8/12/14		712		735,939
4.45%, 1/10/17		4,200		4,551,956
2.50%, 9/26/18		3,000		3,015,141
8.50%, 5/22/19		1,600		2,050,542
5.38%, 8/09/20		5,000		5,688,210
3.38%, 3/01/23 (d)		2,600		2,471,339
3.50%, 5/15/23 (d)		2,700		2,515,836
6.13%, 8/25/36		800		852,936
8.13%, 7/15/39		3,300		4,628,870
5.88%, 1/30/42		350		393,356
Ford Motor Credit Co. LLC:
3.88%, 1/15/15		2,900		2,992,377
1.70%, 5/09/16		2,800		2,832,038
5.88%, 8/02/21		600		680,225
4.25%, 9/20/22		3,700		3,717,005
4.38%, 8/06/23 (d)		2,585		2,598,853
General Electric Capital Corp.:
2.25%, 11/09/15		2,000		2,061,222
4.38%, 9/16/20		4,000		4,335,156
4.63%, 1/07/21		1,600		1,744,715
6.75%, 3/15/32		500		619,153
6.88%, 1/10/39		1,000		1,285,596
IntercontinentalExchange Group, Inc., 2.50%, 10/15/18		3,000		3,022,065
Jefferies Group LLC, 5.13%, 1/20/23 (d)		940		950,778
JPMorgan Chase & Co.:
1.13%, 2/26/16 (d)		4,500		4,507,659
2.00%, 8/15/17 (d)		4,100		4,158,851
4.25%, 10/15/20		6,000		6,360,222
3.25%, 9/23/22 (d)		2,600		2,491,635
3.20%, 1/25/23 (d)		10,900		10,333,483
3.38%, 5/01/23		1,800		1,677,600
5.60%, 7/15/41		1,000		1,085,245
JPMorgan Chase Bank NA, 6.00%, 10/01/17		800		915,295

280 See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Diversified Financial Services (concluded)
Leucadia National Corp., 5.50%, 10/18/23	USD	3,375	$	3,373,032
Merrill Lynch & Co., Inc.:
6.88%, 4/25/18		3,550		4,197,406
6.11%, 1/29/37		1,300		1,402,012
				145,232,367
Diversified Telecommunication Services — 1.4%
Alltel Corp., 7.00%, 3/15/16		2,500		2,804,835
AT&T, Inc.:
2.40%, 8/15/16		1,250		1,285,433
2.38%, 11/27/18		5,565		5,569,775
3.00%, 2/15/22		5,600		5,276,062
5.35%, 9/01/40		1,231		1,217,991
5.55%, 8/15/41		5,000		5,074,300
CC Holdings GS V LLC/Crown Castle GS III Corp., 3.85%, 4/15/23		4,250		3,978,438
Embarq Corp., 8.00%, 6/01/36		1,000		1,012,440
Verizon Communications, Inc.:
3.65%, 9/14/18		4,500		4,763,538
8.75%, 11/01/18		1,300		1,663,446
4.50%, 9/15/20		4,500		4,817,547
6.90%, 4/15/38		900		1,071,059
7.35%, 4/01/39		1,700		2,111,388
4.75%, 11/01/41		2,100		1,963,175
6.55%, 9/15/43		2,675		3,129,640
				45,739,067
Electric Utilities — 1.4%
Commonwealth Edison Co.:
4.70%, 4/15/15		1,000		1,050,293
Series 100, 5.88%, 2/01/33		3,500		3,968,986
Duke Energy Corp.:
2.15%, 11/15/16		2,100		2,152,177
5.05%, 9/15/19 (d)		2,000		2,220,326
Duke Energy Florida, Inc., 3.85%, 11/15/42		2,500		2,189,330
MidAmerican Energy Holdings Co., 5.75%, 4/01/18		6,550		7,476,779
Mississippi Power Co., 4.25%, 3/15/42		1,700		1,474,782
Nisource Finance Corp., 4.80%, 2/15/44		1,125		1,015,048
Northern States Power Co., 5.25%, 7/15/35		2,500		2,686,727
Pacific Gas & Electric Co.:
5.63%, 11/30/17		1,500		1,699,463
3.25%, 9/15/21 (d)		2,900		2,848,305
3.75%, 8/15/42		3,000		2,502,339
PacifiCorp:
5.50%, 1/15/19		1,300		1,492,903
6.25%, 10/15/37		1,000		1,192,270
Progress Energy, Inc.:
4.88%, 12/01/19		3,100		3,406,258
4.40%, 1/15/21		3,700		3,904,621
3.15%, 4/01/22 (d)		950		914,718
PSEG Power LLC, 2.45%, 11/15/18		400		394,810
The Southern Co., 4.15%, 5/15/14		900		912,004
Tampa Electric Co., 2.60%, 9/15/22		2,000		1,843,798
Xcel Energy, Inc., 0.75%, 5/09/16		3,200		3,173,014
				48,518,951

Corporate Bonds	Par (000)		Value
Electrical Equipment — 0.1%
Roper Industries, Inc., 2.05%, 10/01/18	USD	3,500	$	3,401,380
Electronic Equipment, Instruments & Components — 0.1%
Tyco Electronics Group SA, 6.55%, 10/01/17		2,900		3,318,748
Food & Staples Retailing — 0.8%
CVS Caremark Corp.:
6.13%, 8/15/16		2,300		2,586,805
2.25%, 12/05/18		3,125		3,124,088
The Kroger Co.:
3.30%, 1/15/21		5,000		4,967,045
3.85%, 8/01/23		2,025		1,993,726
Wal-Mart Stores, Inc.:
1.13%, 4/11/18		4,400		4,270,200
5.63%, 4/01/40		3,500		3,953,600
5.63%, 4/15/41		3,800		4,314,801
				25,210,265
Food Products — 0.4%
The Hershey Co., 4.13%, 12/01/20		1,550		1,657,502
Kellogg Co.:
4.45%, 5/30/16		100		107,879
3.25%, 5/21/18		1,550		1,611,952
Mead Johnson Nutrition Co., 4.90%, 11/01/19		4,500		4,907,061
Mondelez International, Inc., 4.13%, 2/09/16		2,000		2,120,316
Unilever Capital Corp., 2.20%, 3/06/19		3,400		3,395,634
				13,800,344
Gas Utilities — 0.1%
Southern California Gas Co., 3.75%, 9/15/42		1,800		1,587,553
Health Care Equipment & Supplies — 0.5%
Baxter International, Inc., 1.85%, 6/15/18		1,650		1,629,362
Boston Scientific Corp., 2.65%, 10/01/18		2,000		2,013,606
Covidien International Finance SA:
4.20%, 6/15/20		1,700		1,803,865
3.20%, 6/15/22		6,600		6,364,287
2.95%, 6/15/23		4,400		4,070,282
St. Jude Medical, Inc., 3.25%, 4/15/23		2,600		2,425,756
				18,307,158
Health Care Providers & Services — 1.1%
Aetna, Inc., 2.75%, 11/15/22		3,500		3,224,029
AmerisourceBergen Corp.:
5.88%, 9/15/15 (d)		2,000		2,168,744
4.88%, 11/15/19		900		990,834
3.50%, 11/15/21		6,250		6,141,794
Cardinal Health, Inc., 1.70%, 3/15/18		2,200		2,152,942
DaVita HealthCare Partners, Inc., 6.38%, 11/01/18 (d)		3,550		3,727,500
Express Scripts Holding Co., 3.13%, 5/15/16		3,000		3,131,139
Humana, Inc., 6.45%, 6/01/16 (d)		4,100		4,581,406
McKesson Corp., 1.40%, 3/15/18		4,500		4,323,613
UnitedHealth Group, Inc., 4.70%, 2/15/21 (d)		3,100		3,382,261

281

See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Health Care Providers & Services (concluded)
WellPoint, Inc., 5.25%, 1/15/16	USD	2,890	$	3,124,737
				36,948,999
Hotels, Restaurants & Leisure — 0.5%
Brinker International, Inc., 2.60%, 5/15/18		1,200		1,181,140
McDonald’s Corp.:
6.30%, 10/15/37		1,000		1,218,587
4.88%, 7/15/40		1,600		1,633,642
3.70%, 2/15/42		1,800		1,524,443
Starbucks Corp., 0.88%, 12/05/16		2,450		2,434,572
Wyndham Worldwide Corp.:
4.25%, 3/01/22 (d)		1,550		1,512,757
3.90%, 3/01/23		1,550		1,460,047
Yum! Brands, Inc.:
4.25%, 9/15/15		2,000		2,111,578
5.30%, 9/15/19		2,241		2,498,397
6.88%, 11/15/37		542		617,131
				16,192,294
Household Durables — 0.1%
MDC Holdings, Inc., 6.00%, 1/15/43 (d)		1,108		955,947
Mohawk Industries, Inc., 3.85%, 2/01/23		1,655		1,572,250
Tupperware Brands Corp., 4.75%, 6/01/21		750		754,270
				3,282,467
Household Products — 0.0%
Kimberly-Clark Corp., 2.40%, 3/01/22		1,250		1,161,899
Independent Power Producers & Energy Traders — 0.2%
Constellation Energy Group, Inc., 5.15%, 12/01/20		3,200		3,405,120
Exelon Generation Co. LLC, 5.75%, 10/01/41		500		478,935
PSEG Power LLC, 4.15%, 9/15/21		1,150		1,166,938
Southern Power Co., 5.15%, 9/15/41		1,000		978,991
				6,029,984
Industrial Conglomerates — 0.0%
General Electric Co., 4.13%, 10/09/42 (d)		1,200		1,108,630
Insurance — 0.9%
Aflac, Inc.:
8.50%, 5/15/19		1,500		1,915,802
3.63%, 6/15/23		4,000		3,871,904
American International Group, Inc.:
6.40%, 12/15/20		1,200		1,418,233
8.18%, 5/15/38 (a)		500		605,000
Berkshire Hathaway, Inc.:
1.90%, 1/31/17		2,400		2,455,238
3.00%, 2/11/23		3,500		3,305,291
Fidelity National Financial, Inc., 5.50%, 9/01/22		1,225		1,270,526
Genworth Holdings, Inc., 4.80%, 2/15/24		1,475		1,456,945
Markel Corp.:
5.35%, 6/01/21		1,300		1,411,053
3.63%, 3/30/23 (d)		1,300		1,223,561
Marsh & McLennan Cos., Inc.:
5.75%, 9/15/15		192		207,387
4.80%, 7/15/21		1,600		1,705,651

Corporate Bonds	Par (000)		Value
Insurance (concluded)
Protective Life Corp., 8.45%, 10/15/39	USD	800	$	1,018,353
Prudential Financial, Inc., 4.75%, 9/17/15		3,900		4,156,004
Willis Group Holdings PLC, 4.13%, 3/15/16		2,600		2,722,028
XLIT Ltd., 5.75%, 10/01/21		1,400		1,572,018
				30,314,994
Internet & Catalog Retail — 0.1%
Amazon.com, Inc., 1.20%, 11/29/17		2,600		2,545,642
Internet Software & Services — 0.3%
Baidu, Inc., 3.25%, 8/06/18		7,000		7,075,586
eBay, Inc., 2.60%, 7/15/22		850		781,769
VeriSign, Inc., 4.63%, 5/01/23		1,325		1,265,375
				9,122,730
IT Services — 0.5%
Fiserv, Inc., 3.50%, 10/01/22		4,000		3,714,428
International Business Machines Corp.:
2.00%, 1/05/16		8,600		8,826,705
7.63%, 10/15/18		2,050		2,564,267
				15,105,400
Leisure Equipment & Products — 0.2%
Mattel, Inc.:
2.50%, 11/01/16		750		769,326
5.45%, 11/01/41		1,600		1,598,757
Royal Caribbean Cruises Ltd., 5.25%, 11/15/22		3,654		3,654,000
				6,022,083
Life Sciences Tools & Services — 0.2%
Thermo Fisher Scientific, Inc.:
3.25%, 11/20/14		1,600		1,633,979
3.20%, 3/01/16		2,800		2,927,386
2.40%, 2/01/19		325		321,975
				4,883,340
Machinery — 0.2%
Danaher Corp., 2.30%, 6/23/16		450		464,422
Dover Corp., 4.30%, 3/01/21		2,400		2,539,968
Ingersoll-Rand Global Holding Co., Ltd. (b):
2.88%, 1/15/19		400		394,251
5.75%, 6/15/43		1,500		1,522,458
Trinity Acquisition PLC, 6.13%, 8/15/43		1,100		1,111,991
				6,033,090
Media — 0.9%
Comcast Corp.:
5.70%, 5/15/18		2,450		2,813,222
3.13%, 7/15/22		2,550		2,433,470
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.:
3.55%, 3/15/15		3,600		3,718,678
5.15%, 3/15/42		1,500		1,347,153
DISH DBS Corp.:
7.88%, 9/01/19		2,700		3,091,500
6.75%, 6/01/21		1,200		1,272,000

282 See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Media (concluded)
NBCUniversal Enterprise, Inc., 1.97%, 4/15/19 (b)(d)	USD	2,700	$	2,641,083
Scripps Networks Interactive, Inc., 2.70%, 12/15/16		2,300		2,391,223
Thomson Reuters Corp.:
0.88%, 5/23/16		1,600		1,588,741
1.30%, 2/23/17		350		348,456
Viacom, Inc.:
4.38%, 9/15/14		1,300		1,333,905
2.50%, 9/01/18		4,300		4,334,662
4.38%, 3/15/43		2,400		2,026,491
Virgin Media Secured Finance PLC, 5.38%, 4/15/21 (b)		1,225		1,225,000
				30,565,584
Metals & Mining — 0.1%
Reliance Steel & Aluminum Co., 4.50%, 4/15/23		2,000		1,961,838
Xstrata Canada Corp., 6.20%, 6/15/35		600		586,758
Xstrata Finance Canada Ltd., 6.00%, 11/15/41 (b)		650		629,047
				3,177,643
Multi-Utilities — 0.3%
Consolidated Edison Co. of New York, Inc., Series 12-A, 4.20%, 3/15/42		2,400		2,197,699
Dominion Resources, Inc.:
6.40%, 6/15/18		4,050		4,723,086
4.45%, 3/15/21		2,100		2,226,489
4.05%, 9/15/42		1,700		1,440,327
SCANA Corp., 4.13%, 2/01/22		500		485,564
				11,073,165
Multiline Retail — 0.1%
Nordstrom, Inc.:
4.00%, 10/15/21 (d)		1,200		1,244,596
7.00%, 1/15/38		600		769,250
				2,013,846
Oil, Gas & Consumable Fuels — 2.6%
BP Capital Markets PLC:
3.13%, 10/01/15		700		731,324
3.20%, 3/11/16		1,500		1,575,118
3.56%, 11/01/21		1,900		1,914,847
Buckeye Partners LP:
2.65%, 11/15/18		4,900		4,827,999
4.88%, 2/01/21		550		562,841
4.15%, 7/01/23		3,100		2,980,777
Chevron Corp.:
2.43%, 6/24/20		1,050		1,021,713
2.36%, 12/05/22		4,200		3,820,270
CNOOC Finance 2013 Ltd., 1.75%, 5/09/18		875		855,316
ConocoPhillips Canada Funding Co. I, 5.63%, 10/15/16 (d)		500		559,433
DCP Midstream Operating LP, 3.25%, 10/01/15		2,000		2,066,190
Encana Corp., 6.50%, 5/15/19		400		467,259
Energy Transfer Equity LP, 7.50%, 10/15/20		975		1,094,437
Energy Transfer Partners LP:
9.70%, 3/15/19		842		1,090,187
9.00%, 4/15/19		373		471,426
4.15%, 10/01/20		3,950		4,007,595

Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Enterprise Products Operating LLC:
3.20%, 2/01/16	USD	3,000	$	3,129,396
5.20%, 9/01/20		500		556,188
5.75%, 3/01/35		1,500		1,586,142
5.95%, 2/01/41		900		980,148
4.45%, 2/15/43		2,100		1,854,964
Husky Energy, Inc.:
3.95%, 4/15/22		5,300		5,231,280
6.80%, 9/15/37		1,000		1,201,774
Kinder Morgan Energy Partners LP, 3.95%, 9/01/22		4,400		4,287,624
Marathon Oil Corp., 0.90%, 11/01/15		1,300		1,301,084
Marathon Petroleum Corp., 6.50%, 3/01/41		1,074		1,224,050
Petrobras Global Finance BV, 4.38%, 5/20/23 (d)		3,200		2,850,854
Petrobras International Finance Co.:
5.38%, 1/27/21		3,100		3,076,403
6.75%, 1/27/41		500		465,216
Petroleos Mexicanos:
5.50%, 1/21/21		1,100		1,182,500
4.88%, 1/24/22 (d)		2,600		2,671,500
6.50%, 6/02/41 (d)		4,800		5,016,000
Plains All American Pipeline LP/PAA Finance Corp.:
8.75%, 5/01/19		600		767,434
6.70%, 5/15/36		1,000		1,172,622
Statoil ASA, 1.95%, 11/08/18		2,840		2,815,752
Sunoco Logistics Partners Operations LP:
3.45%, 1/15/23		4,400		4,042,927
6.10%, 2/15/42		900		918,888
4.95%, 1/15/43		900		800,661
TransCanada PipeLines Ltd.:
6.50%, 8/15/18		2,850		3,354,108
3.80%, 10/01/20		4,200		4,347,559
5.00%, 10/16/43		2,200		2,167,977
Williams Partners LP, 3.80%, 2/15/15		800		826,497
				85,876,280
Paper & Forest Products — 0.1%
International Paper Co., 9.38%, 5/15/19		1,600		2,098,680
Pharmaceuticals — 1.2%
AbbVie, Inc., 1.20%, 11/06/15		1,300		1,313,213
Allergan, Inc., 1.35%, 3/15/18		2,950		2,874,716
AstraZeneca PLC:
6.45%, 9/15/37		2,500		2,985,247
4.00%, 9/18/42		3,400		2,956,905
Bristol-Myers Squibb Co., 2.00%, 8/01/22		4,600		4,071,690
Eli Lilly & Co., 5.55%, 3/15/37		1,700		1,865,792
GlaxoSmithKline Capital PLC, 2.85%, 5/08/22		4,500		4,244,157
GlaxoSmithKline Capital, Inc.:
0.70%, 3/18/16		2,500		2,489,387
5.65%, 5/15/18		1,200		1,381,368
6.38%, 5/15/38		500		611,975
Johnson & Johnson, 4.38%, 12/05/33		4,000		4,026,040
Pfizer, Inc., 6.20%, 3/15/19		1,500		1,778,145

283

See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Pharmaceuticals (concluded)
Sanofi, 1.25%, 4/10/18	USD	2,900	$	2,823,481
Sanofi-Aventis SA, 2.63%, 3/29/16		2,400		2,495,650
Teva Pharmaceutical Finance IV BV, 3.65%, 11/10/21		2,800		2,746,296
Zoetis, Inc., 1.15%, 2/01/16		3,000		3,003,405
				41,667,467
Professional Services — 0.0%
The Dun & Bradstreet Corp., 2.88%, 11/15/15 (d)		600		615,305
Real Estate Investment Trusts (REITs) — 0.5%
American Tower Corp.:
4.63%, 4/01/15		4,000		4,183,728
5.05%, 9/01/20		1,300		1,374,716
Corrections Corp. of America:
4.13%, 4/01/20 (d)		2,900		2,842,000
4.63%, 5/01/23		2,425		2,285,563
Health Care REIT, Inc., 5.25%, 1/15/22		3,100		3,303,469
Host Hotels & Resorts LP, 3.75%, 10/15/23		525		486,770
Simon Property Group LP:
5.65%, 2/01/20		1,000		1,136,977
4.75%, 3/15/42 (d)		1,900		1,838,261
				17,451,484
Road & Rail — 0.3%
Burlington Northern Santa Fe LLC:
3.00%, 3/15/23		2,000		1,862,522
5.40%, 6/01/41		2,700		2,800,483
Canadian Pacific Railway Co., 7.13%, 10/15/31		1,000		1,202,579
Norfolk Southern Corp., 5.75%, 1/15/16		2,425		2,649,337
Union Pacific Corp., 6.13%, 2/15/20		1,300		1,514,710
				10,029,631
Semiconductors & Semiconductor Equipment — 0.8%
Altera Corp., 2.50%, 11/15/18		7,900		7,833,135
Intel Corp.:
3.30%, 10/01/21		2,100		2,086,333
2.70%, 12/15/22		3,000		2,765,421
Maxim Integrated Products, Inc.:
2.50%, 11/15/18		1,220		1,209,691
3.38%, 3/15/23		2,000		1,831,114
Seagate HDD Cayman (b):
3.75%, 11/15/18		7,500		7,584,375
4.75%, 6/01/23		3,100		2,898,500
				26,208,569
Software — 0.2%
Microsoft Corp., 2.13%, 11/15/22		2,700		2,439,153
Oracle Corp.:
5.25%, 1/15/16		1,500		1,637,406
5.75%, 4/15/18		550		635,562
3.63%, 7/15/23		950		942,369
5.38%, 7/15/40		800		854,227
				6,508,717
Specialty Retail — 1.1%
Advance Auto Parts, Inc., 4.50%, 1/15/22		3,100		3,145,700

Corporate Bonds	Par (000)		Value
Specialty Retail (concluded)
The Gap, Inc., 5.95%, 4/12/21 (d)	USD	5,635	$	6,226,523
The Home Depot, Inc.:
5.88%, 12/16/36		2,500		2,884,745
5.40%, 9/15/40		2,000		2,165,170
5.95%, 4/01/41		3,300		3,831,557
L Brands, Inc.:
6.90%, 7/15/17		2,167		2,492,050
8.50%, 6/15/19		4,000		4,800,000
O’Reilly Automotive, Inc., 4.63%, 9/15/21		5,300		5,468,164
QVC, Inc., 4.38%, 3/15/23 (d)		4,275		3,996,877
The Sherwin-Williams Co., 3.13%, 12/15/14		3,300		3,379,322
				38,390,108
Tobacco — 1.2%
Altria Group, Inc.:
4.13%, 9/11/15		2,600		2,743,634
2.85%, 8/09/22		3,400		3,130,451
5.38%, 1/31/44		3,700		3,715,322
Lorillard Tobacco Co., 3.50%, 8/04/16 (d)		650		683,959
Philip Morris International, Inc.:
5.65%, 5/16/18		4,300		4,938,645
1.88%, 1/15/19		3,550		3,469,248
2.90%, 11/15/21		7,700		7,350,844
2.63%, 3/06/23		4,400		3,984,719
6.38%, 5/16/38		2,500		2,963,213
Reynolds American, Inc.:
1.05%, 10/30/15		2,000		2,006,360
3.25%, 11/01/22		2,300		2,119,947
4.85%, 9/15/23		2,900		2,993,687
6.15%, 9/15/43		1,000		1,079,853
				41,179,882
Wireless Telecommunication Services — 0.2%
American Tower Corp.:
4.50%, 1/15/18		2,100		2,249,652
4.70%, 3/15/22		2,900		2,898,684
Vodafone Group PLC:
2.88%, 3/16/16		1,800		1,866,749
5.63%, 2/27/17		950		1,062,750
				8,077,835
Total Corporate Bonds — 30.3%				1,021,134,921
Foreign Agency Obligations
Brazilian Government International Bond, 5.63%, 1/07/41		1,500		1,455,000
Colombia Government International Bond:
4.38%, 7/12/21		2,000		2,060,000
7.38%, 9/18/37 (d)		800		982,000
6.13%, 1/18/41		1,200		1,284,000
Kreditanstalt für Wiederaufbau, 2.75%, 10/01/20		7,900		7,958,460
Mexico Government International Bond:
5.13%, 1/15/20		2,900		3,213,200
6.75%, 9/27/34		2,400		2,832,000
6.05%, 1/11/40		1,300		1,413,750
Panama Government International Bond, 6.70%, 1/26/36		1,600		1,788,000
Peruvian Government International Bond, 6.55%, 3/14/37		1,100		1,265,000
South Africa Government International Bond, 5.50%, 3/09/20		2,000		2,130,000
Turkey Government International Bond, 3.25%, 3/23/23 (d)		8,800		7,238,000
Total Foreign Agency Obligations — 1.0%				33,619,410

284 See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)		Value
Bay Area Toll Authority, RB, San Francisco Toll Bridge:
Series F-2, 6.26%, 4/01/49	USD	425	$	509,749
Series S-1, 7.04%, 4/01/50		800		983,384
Brazos Higher Education Authority, Series 2004-I, Class A2, 0.41%, 6/27/22 (a)		1,038		1,035,158
City & County of Denver Colorado School District No. 1, COP, Refunding, Series B, 4.24%, 12/15/37		875		778,671
City & County of San Francisco California Public Utilities Commission Water Revenue, RB, Build America Bonds, Sub-Series G, 6.95%, 11/01/50		900		1,119,600
City of Chicago Illinois Transit Authority, RB, Series B, 6.90%, 12/01/40		450		504,414
City of Chicago Illinois Waterworks Transmission, RB, Build America Bonds, 2nd Lien, Series B, 6.74%, 11/01/40		150		166,446
City of Los Angeles California Department of Water & Power, RB, Build America Bonds, Series D, 6.57%, 7/01/45		1,320		1,647,452
City of New York New York Transitional Finance Authority, RB, Build America Bonds, Sub-Series B-1, 5.57%, 11/01/38		450		499,433
City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Build America Bonds, Fiscal 2010, Series EE, 6.01%, 6/15/42		1,000		1,166,100
Commonwealth of Massachusetts, RB, Build America Bonds, Recovery Zone, Series A, 5.73%, 6/01/40		150		170,532
County of Orange California Local Transportation Authority, Refunding RB, Build America Bonds, Series A, 6.91%, 2/15/41		450		557,586
County of San Diego California Regional Transportation Commission, RB, Build America Bonds, Series A, 5.91%, 4/01/48		600		686,580
Florida Hurricane Catastrophe Fund Finance Corp., RB, Series A, 1.30%, 7/01/16		1,725		1,721,291
Metropolitan Water District of Southern California, RB, Build America Bonds, Series A, 6.95%, 7/01/40		1,200		1,339,572
New Jersey State Turnpike Authority, RB, Build America Bonds:
Series A, 7.10%, 1/01/41		700		896,322
Series F, 7.41%, 1/01/40		700		932,715

Municipal Bonds	Par (000)			Value
New York State Dormitory Authority, RB, Build America Bonds, General Purpose, Series H, 5.39%, 3/15/40	USD	675		$	728,426
Port Authority of New York & New Jersey, RB, 164th Series, 5.65%, 11/01/40		800			872,192
Port Authority of New York & New Jersey, Refunding RB, 174th Series, 4.46%, 10/01/62		700			593,488
State of California, GO, Build America Bonds, Various Purpose:
7.55%, 4/01/39		1,150			1,490,389
7.63%, 3/01/40		1,150			1,514,067
7.60%, 11/01/40 (d)		250			330,053
State of Illinois, GO:
Build America Bonds, 7.35%, 7/01/35		650			724,347
Pension, 5.10%, 6/01/33		1,000			931,800
State of Mississippi, GO, Refunding Build America Bonds, Series F, 5.25%, 11/01/34		600			627,228
State of Oregon Department of Transportation, RB, Sub-Lien, Series A, 5.83%, 11/15/34		400			460,468
State of Texas, GO, Build America Bonds, Series A, 5.52%, 4/01/39		1,000			1,121,560
University of California, Refunding RB, Series AJ, 4.60%, 5/15/31		1,000			994,450
University of Missouri, RB, Build America Bonds, Series A, 5.79%, 11/01/41		300			347,970
Total Municipal Bonds — 0.7%					25,451,443
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 1.2%
Citicorp Mortgage Securities Trust, Series 2006-1, Class 2A1, 5.00%, 2/25/21		318			330,785
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-7, Class 1A6, 5.25%, 8/25/35		514			521,583
CSMC Trust (a)(b):
Series 2009-13R, Class 5A1, 0.94%, 1/26/35		8,327			8,231,597
Series 2010-20R, Class 7A6, 3.50%, 3/27/37		5,654			5,707,915
Series 2011-4R, Class 4A6, 4.00%, 8/27/37		2,182			2,196,328
Series 2013-8R, Class 7A1, 0.33%, 4/27/37		1,796			1,701,285
Series 2013-8R, Class 8A1, 0.41%, 5/27/37		6,644			6,294,466
GreenPoint Mortgage Funding Trust, Class A1A (a):
Series 2006-AR4, 0.26%, 9/25/46		—	(e)		20
Series 2006-AR5, 0.24%, 10/25/46		—	(e)		201
HSI Asset Securitization Corp. Trust, Series 2005-NC2, Class 2A4, 0.94%, 8/25/35 (a)		242			239,737

285

See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Collateralized Mortgage Obligations (concluded)
MASTR Asset Securitization Trust, Series 2005-2, Class 1A1, 5.25%, 11/25/35	USD	68	$	68,200
National RMBS Trust, Series 2006-3, Class A1, 0.31%, 10/20/37 (a)(b)		3,335		3,327,214
Permanent Master Issuer PLC, Series 2011-1A, Class 1A1, 1.64%, 7/15/42 (a)(b)		4,300		4,301,105
Puma Finance Property Ltd., Series G5, Class A1, 0.38%, 2/21/38 (a)(b)		893		885,167
RALI Trust:
Series 2004-QS4, Class A7, 4.00%, 3/25/34		96		97,233
Series 2004-QS5, Class A5, 4.75%, 4/25/34		894		904,057
Series 2004-QS9, Class A1, 5.00%, 6/25/19		351		352,293
Structured Agency Credit Risk Debt Notes, Series 2013-DN2, Class M1, 1.62%, 11/25/23 (a)		4,873		4,861,555
Wells Fargo Mortgage-Backed Securities Trust, Series 2006-4, Class 1A8, 5.75%, 4/25/36		132		131,965
				40,152,706
Commercial Mortgage-Backed Securities — 6.6%
Banc of America Commercial Mortgage Trust:
Series 2006-5, Class AM, 5.45%, 9/10/47		1,520		1,626,657
Series 2006-6, Class A4, 5.36%, 10/10/45		3,580		3,854,171
Series 2007-4, Class A4, 5.75%, 2/10/51 (a)		3,810		4,207,806
Banc of America Merrill Lynch Commercial Mortgage, Inc.:
Series 2004-6, Class A3, 4.51%, 12/10/42		34		34,395
Series 2005-6, Class A4, 5.18%, 9/10/47 (a)		2,790		2,970,055
Bear Stearns Commercial Mortgage Securities Trust:
Series 2005-PW10, Class AM, 5.45%, 12/11/40 (a)		2,710		2,893,624
Series 2005-PWR8, Class A4, 4.67%, 6/11/41		492		511,677
CD Commercial Mortgage Trust, Series 2007-CD4, Class AMFX, 5.37%, 12/11/49 (a)		500		516,379
CD Mortgage Trust, Series 2007-CD5, Class A4, 5.89%, 11/15/44 (a)		2,218		2,488,665
Citigroup Commercial Mortgage Trust, Series 2010-RR2, Class CA3A, 5.31%, 12/19/39 (a)(b)		640		696,885
Commercial Mortgage Trust:
Series 2005-GG3, Class A4, 4.80%, 8/10/42 (a)		2,496		2,560,844
Series 2006-C7, Class AM, 5.78%, 6/10/46 (a)		1,870		2,009,811
Series 2007-C9, Class A4, 5.80%, 12/10/49 (a)		3,244		3,657,851
Series 2013-CR7, Class A4, 3.21%, 3/10/46		1,700		1,622,725
Series 2013-CR9, Class A4, 4.24%, 7/10/45 (a)		600		621,601

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2013-CR12, Class A3, 3.77%, 10/10/46	USD	990	$	974,508
Series 2013-CR12, Class A4, 4.05%, 10/10/46		1,600		1,614,814
Series 2013-LC6, Class AM, 3.28%, 1/10/46		1,290		1,216,847
Credit Suisse Commercial Mortgage Trust:
Series 2006-C3, Class A3, 5.79%, 6/15/38 (a)		3,284		3,575,546
Series 2006-C3, Class AM, 5.79%, 6/15/38 (a)		638		691,627
Series 2006-C5, Class A3, 5.31%, 12/15/39		4,485		4,857,807
Series 2007-C1, Class A3, 5.38%, 2/15/40		2,631		2,839,533
Series 2007-C2, Class A3, 5.54%, 1/15/49 (a)		2,250		2,475,009
Series 2007-C2, Class AM, 5.61%, 1/15/49 (a)		950		1,008,511
Credit Suisse First Boston Mortgage Securities Corp. (a):
Series 2004-C1, Class B, 4.86%, 1/15/37		4,410		4,408,824
Series 2005-C5, Class AJ, 5.10%, 8/15/38		4,154		4,375,317
DBRR Trust, Class A (b):
Series 2012-EZ1, 0.95%, 9/25/45		2,752		2,752,354
Series 2013-EZ2, 0.85%, 2/25/45 (a)		6,449		6,415,911
GE Capital Commercial Mortgage Corp. (a):
Series 2005-C2, Class A4, 4.98%, 5/10/43		5,725		5,958,546
Series 2005-C3, Class AJ, 5.07%, 7/10/45		700		738,315
GE Commercial Mortgage Corp. Trust, Series 2007-C1, Class A2, 5.42%, 12/10/49		904		903,170
GMAC Commercial Mortgage Securities, Inc. Trust, Series 2006-C1, Class A4, 5.24%, 11/10/45 (a)		5,570		5,852,310
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A6, 5.40%, 8/10/38		1,588		1,603,432
GS Mortgage Securities Trust:
Series 2012-GCJ7, Class AS, 4.09%, 5/10/45		930		940,276
Series 2013-GC14, Class A5, 4.24%, 8/10/46		1,620		1,667,597
Series 2013-GC16, Class A3, 4.24%, 11/10/46		1,580		1,619,631
GSMS Trust, Series 2009-RR1, Class GGA, 5.79%, 7/12/38 (a)(b)		1,813		1,972,469
JPMBB Commercial Mortgage Securities Trust, Series 2013-C14 (a):
Class A4, 4.13%, 8/15/46		1,400		1,433,673
Class AS, 4.41%, 8/15/46		760		778,335
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2004-CB8, Class A4, 4.40%, 1/12/39		561		561,181
Series 2004-CB9, Class A4, 5.58%, 6/12/41 (a)		4,267		4,340,830
Series 2005-CB11, Class A4, 5.34%, 8/12/37 (a)		3,569		3,711,189
Series 2005-CB13, Class AM, 5.28%, 1/12/43 (a)		2,060		2,194,098

286 See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2005-LDP3, Class AJ, 5.00%, 8/15/42 (a)		USD    7,383	$	7,700,262
Series 2005-LDP5, Class AM, 5.24%, 12/15/44 (a)		5,070		5,467,305
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (a)		1,750		1,879,069
Series 2006-CB16, Class A4, 5.55%, 5/12/45		856		930,114
Series 2006-LDP8, Class AM, 5.44%, 5/15/45		1,984		2,176,527
Series 2011-C5, Class A3, 4.17%, 8/15/46		1,100		1,155,148
Series 2012-CBX, Class AS, 4.27%, 6/15/45		1,110		1,140,255
LB Commercial Mortgage Trust, Series 2007-C3, Class A4, 5.88%, 7/15/44 (a)		2,059		2,305,967
LB-UBS Commercial Mortgage Trust:
Series 2004-C6, Class C, 5.11%, 8/15/36 (a)		600		614,269
Series 2005-C3, Class AM, 4.79%, 7/15/40		6,770		7,095,109
Series 2006-C1, Class AM, 5.22%, 2/15/31 (a)		740		795,174
Series 2006-C7, Class A2, 5.30%, 11/15/38		3,097		3,211,186
Series 2006-C7, Class AM, 5.38%, 11/15/38		1,000		1,080,039
Series 2007-C1, Class A4, 5.42%, 2/15/40		4,320		4,760,873
Series 2007-C2, Class AM, 5.49%, 2/15/40 (a)		1,800		1,899,445
Series 2007-C7, Class A3, 5.87%, 9/15/45 (a)		3,007		3,334,477
Monty Parent Issuer 1 LLC, Series 2013-LTR1, Class B, 4.25%, 10/20/15 (b)		3,656		3,654,838
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C10, Class A4, 4.08%, 7/15/46 (a)		1,560		1,594,986
Morgan Stanley Capital I Trust:
Series 2005-IQ9, Class A5, 4.70%, 7/15/56		1,963		2,008,315
Series 2005-IQ10, Class AJ, 5.22%, 9/15/42 (a)		1,200		1,258,771
Series 2006-HQ8, Class A4, 5.42%, 3/12/44 (a)		4,500		4,804,537
Series 2006-T21, Class A4, 5.16%, 10/12/52 (a)		1,355		1,444,633
Series 2007-HQ11, Class A4, 5.45%, 2/12/44 (a)		2,961		3,236,589
Series 2007-IQ16, Class A4, 5.81%, 12/12/49		3,680		4,114,008
Series 2007-T25, Class A3, 5.51%, 11/12/49 (a)		3,650		4,033,754
Series 2007-T27, Class A4, 5.65%, 6/11/42 (a)		5,450		6,123,249
Series 2007-T27, Class AM, 5.65%, 6/11/42 (a)		2,080		2,307,007
Series 2012-C4, Class A4, 3.24%, 3/15/45		2,220		2,166,429
UBS-Barclays Commercial Mortgage Trust, Series 2013-C6, Class A4, 3.24%, 4/10/46		1,880		1,798,308
Wachovia Bank Commercial Mortgage Trust:
Series 2005-C19, Class A6, 4.70%, 5/15/44		2,008		2,090,491

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Commercial Mortgage-Backed Securities (concluded)
Series 2005-C19, Class B, 4.89%, 5/15/44		USD    3,186	$	3,291,954
Series 2005-C20, Class A7, 5.12%, 7/15/42 (a)		3,199		3,370,761
Series 2005-C20, Class AJ, 5.16%, 7/15/42 (a)		4,110		4,330,164
Series 2005-C20, Class AMFX, 5.18%, 7/15/42 (a)		3,630		3,852,207
Series 2006-C23, Class A4, 5.42%, 1/15/45 (a)		179		190,705
Series 2006-C27, Class A3, 5.77%, 7/15/45 (a)		4,937		5,302,293
Series 2006-C28, Class AM, 5.60%, 10/15/48 (a)		2,430		2,608,481
Series 2007-C34, Class A3, 5.68%, 5/15/46		3,720		4,139,850
Wachovia Commercial Mortgage Trust Pass-Through Certificates, Series 2004-C10, Class B, 4.81%, 2/15/41		1,558		1,557,800
WF-RBS Commercial Mortgage Trust:
Series 2012-C10, Class A3, 2.88%, 12/15/45		1,870		1,746,356
Series 2013-C15, Class A4, 4.15%, 8/15/46 (a)		1,580		1,616,176
Series 2013-C18, Class A5, 4.16%, 12/15/46 (a)		1,880		1,920,758
				221,863,445
Total Non-Agency Mortgage-Backed Securities — 7.8%				262,016,151
US Government Sponsored Agency Securities
Agency Obligations — 3.5%
Fannie Mae:
0.00%, 6/01/17 — 5/15/30 (c)		16,000		13,592,449
0.50%, 3/30/16		15,000		14,983,875
0.88%, 5/21/18		49,708		48,083,145
2.32%, 8/01/33 (a)		1,867		1,982,437
Fannie Mae Principal STRIPS, Series 1P, 0.00%, 2/01/19 (c)		2,000		1,740,692
Federal Farm Credit Banks:
1.69%, 4/09/20		8,000		7,504,960
2.00%, 4/04/22		2,977		2,698,775
Federal Home Loan Bank:
2.88%, 9/11/20		3,805		3,845,592
3.38%, 6/12/20 — 12/08/23		7,800		7,952,268
4.00%, 9/01/28		1,625		1,569,466
FICO STRIPS, Series 12, 0.00%, 12/06/16 (c)		3,000		2,908,194
Freddie Mac, 0.88%, 10/14/16 — 3/07/18 (d)		6,136		5,961,335
Sallie Mae, Inc., 0.00%, 10/03/22 (c)		5,700		4,114,990
Tennessee Valley Authority:
3.50%, 12/15/42		250		197,091
5.88%, 4/01/36		1,125		1,303,227
				118,438,496
Collateralized Mortgage Obligations — 0.3%
Fannie Mae REMICS (a):
Series 2007-54, Class PF, 0.38%, 6/25/37		3,358		3,350,443
Series 2010-89, Class CF, 0.61%, 2/25/38		2,553		2,539,489
Series 2010-35, Class EF, 0.71%, 4/25/40		2,444		2,454,063

287

See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

US Government Sponsored Agency Securities	Par (000)		Value
Collateralized Mortgage Obligations (concluded)
Freddie Mac REMICS (a):
Series 3667, Class FW, 0.72%, 2/15/38		USD    1,512	$	1,517,332
Series 3807, Class FN, 0.67%, 2/15/41		1,529		1,535,500
				11,396,827
Mortgage-Backed Securities — 46.0%
Fannie Mae Mortgage-Backed Securities:
1.94%, 4/01/43 (a)		878		890,654
1.97%, 5/01/43 (a)		1,357		1,378,577
2.09%, 6/01/43 (a)		1,470		1,462,296
2.26%, 1/01/36 (a)		950		1,005,120
2.32%, 1/01/35 (a)		1,190		1,254,256
2.35%, 5/01/33 (a)		2,286		2,418,242
2.44%, 2/01/42 (a)		32		33,779
2.50%, 9/01/28 — 1/01/44 (f)		39,491		38,801,823
2.75%, 1/01/42 (a)		753		773,691
2.78%, 8/01/41 (a)		2,239		2,336,839
3.00%, 1/01/27 — 1/01/44 (f)		131,587		127,137,873
3.31%, 9/01/41 (a)		1,113		1,159,802
3.34%, 4/01/40 (a)		279		292,869
3.50%, 2/01/26 — 1/01/44 (f)		109,162		109,700,218
3.62%, 5/01/40 (a)		1,758		1,867,053
4.00%, 8/01/25 — 1/01/44 (f)		303,345		313,011,746
4.50%, 10/01/24 — 1/01/44 (f)		218,518		231,805,184
5.00%, 1/01/18 — 1/01/44 (f)		108,488		117,914,930
5.50%, 9/01/19 — 1/01/44 (f)		25,468		28,009,640
6.00%, 11/01/22 — 8/01/38		23,009		25,764,351
6.50%, 12/01/30 — 12/01/32		9,582		10,792,379
Freddie Mac Mortgage-Backed Securities:
1.80%, 6/01/43 (a)		434		437,479
2.21%, 10/01/33 (a)		1,171		1,237,705
2.48%, 5/01/43 (a)		1,023		1,001,323
2.50%, 1/01/29 — 4/01/43 (f)		23,969		23,669,061
2.51%, 11/01/36 — 8/01/43 (a)		2,766		2,881,002
2.62%, 1/01/42 (a)		23		23,627
3.00%, 3/01/27 — 1/01/44 (f)		59,819		57,862,351
3.26%, 8/01/41 (a)		1,367		1,441,376
3.34%, 7/01/41 (a)		874		912,414
3.40%, 2/01/40 (a)		1,524		1,599,633
3.50%, 12/01/25 — 1/01/44 (f)		51,568		51,689,184
4.00%, 3/01/26 — 1/01/44 (f)		40,874		42,260,407
4.50%, 8/01/20 — 1/01/44 (f)		46,227		49,033,612
5.00%, 10/01/20 — 1/01/44 (f)		24,981		26,920,080
5.50%, 12/01/27 — 8/01/38		9,727		10,620,670
6.00%, 12/01/28 — 1/01/38		7,908		8,795,221
6.50%, 5/01/21 — 1/01/36		2,902		3,280,986
Ginnie Mae Mortgage-Backed Securities:
3.00%, 5/15/43 — 1/01/44 (f)		34,844		33,660,915
3.50%, 1/15/41 — 1/01/44 (f)		59,484		60,096,323
4.00%, 9/15/40 — 1/01/44 (f)		40,410		42,115,421
4.50%, 3/15/39 — 1/01/44 (f)		62,062		66,427,722
5.00%, 9/15/39 — 5/20/41		28,960		31,897,121
5.50%, 6/15/34 — 7/20/40		10,158		11,234,145
6.00%, 9/20/38 — 10/20/38		3,573		4,022,817
				1,550,931,917
Total US Government Sponsored Agency Securities — 49.8%				1,680,767,240
US Treasury Obligations
US Treasury Bonds (d):
6.38%, 8/15/27 (g)		24,068		31,957,779
6.25%, 5/15/30		26,586		35,512,807
5.00%, 5/15/37		21,563		25,659,970
4.38%, 5/15/40 (g)		11,922		12,950,272
3.88%, 8/15/40		15,149		15,153,726
4.38%, 5/15/41		1		1,085

US Treasury Obligations	Par (000)		Value
US Treasury Inflation Indexed Bond, 0.63%, 2/15/43		USD  10,361	$	7,966,837
US Treasury Inflation Indexed Note, 0.38%, 7/15/23 (d)		66,596		64,228,945
US Treasury Notes (d):
0.25%, 6/30/14		21,258		21,274,602
2.63%, 7/31/14		33,150		33,631,703
2.63%, 12/31/14		48,363		49,538,076
0.88%, 4/30/17		48,051		47,908,337
1.00%, 8/31/19		143,993		136,174,612
1.13%, 3/31/20		51,137		47,916,954
Total US Treasury Obligations — 15.7%				529,875,705
Preferred Securities
Capital Trusts
Capital Markets — 0.0%
The Bank of New York Mellon Corp., Series D, 4.50% (a)(d)(h)		1,264		1,147,080
Diversified Financial Services — 0.1%
JPMorgan Chase & Co., Series Q, 5.15% (a)(h)		1,825		1,637,937
Insurance — 0.1%
The Chubb Corp.,
6.00%, 5/11/37		800		934,524
6.38%, 3/29/67 (a)		2,550		2,760,375
				3,694,899
Media — 0.1%
NBCUniversal Enterprise, Inc., 5.25% (b)(h)		2,200		2,178,000
Total Capital Trusts — 0.3%				8,657,916
Preferred Stocks — 0.1%	Shares
Diversified Telecommunication Services — 0.1%
Qwest Corp., 7.38%		196,000		4,533,480
Total Preferred Securities — 0.4%				13,191,396
Total Long-Term Investments (Cost — $4,028,449,604) — 118.8%				4,006,683,500
Short-Term Securities
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.14% (i)(j)(k)		538,812,448		538,812,448
BlackRock Cash Funds: Prime, SL Agency Shares, 0.11% (i)(j)(k)		68,186,051		68,186,051
Total Short-Term Securities (Cost — $606,998,499) — 18.0%				606,998,499
Options Purchased (Cost — $214,444) — 0.0%				20,350
Total Investments Before TBA Sale Commitments and Options Written (Cost — $4,635,662,547*) — 136.8%				4,613,702,349
TBA Sale Commitments (f)	Par (000)
Fannie Mae Mortgage-Backed Securities:
3.00%, 1/01/44	USD	89,300		(84,890,812	)
3.50%, 1/01/44		6,380		(6,345,109	)
4.00%, 1/01/44		82,400		(84,923,500	)
4.50%, 1/01/44		111,500		(118,259,688	)
5.00%, 1/01/44		87,100		(94,666,813	)
6.00%, 1/01/44		13,000		(14,434,062	)

288 See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(Percentages shown are based on Net Assets)

TBA Sale Commitments (f)	Par (000)		Value
Freddie Mac Mortgage-Backed Securities, 4.50%, 1/01/44		USD    6,400	$	(6,771,750	)
Ginnie Mae Mortgage-Backed Securities:
4.50%, 1/01/44		17,000		(18,175,397	)
5.00%, 1/01/44		8,000		(8,672,500	)
Total TBA Sale Commitments (Proceeds — $438,193,195) — (13.0)%				(437,139,631	)
Options Written (Premiums Received — $162,031) — (0.0)%				(12,719	)
Total Investments, Net of TBA Sale Commitments and Options Written — 123.8%				4,176,549,999
Liabilities in Excess of Other Assets — (23.8)%				(803,403,038	)
Net Assets — 100.0%			$	3,373,146,961

Notes to Schedule of investments

* As of December 31, 2013, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	4,635,925,927
Gross unrealized appreciation	$	44,847,956
Gross unrealized depreciation		(67,071,534	)
Net unrealized depreciation	$	(22,223,578	)

(a) Variable rate security. Rate shown is as of report date.

(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) Zero-coupon bond.

(d) Security, or a portion of security, is on loan.

(e) Amount is less than $500.

(f) Represents or includes a TBA transaction. Unsettled TBA transactions as of December 31, 2013 were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Barclays Capital, Inc.	$	2,092,438		$	84,775
BNP Paribas Securities Corp.	$	19,524,250		$	(42,840	)
Citigroup Global Markets, Inc.	$	40,798,534		$	(34,134	)
Credit Suisse Securities (USA) LLC	$	80,265,431		$	(177,375	)
Deutsche Bank Securities Inc.	$	43,572,097		$	(73,276	)
Goldman Sachs & Co.	$	127,688,613		$	(276,500	)
Jefferies LLC	$	4,753,125		$	(8,739	)
J.P. Morgan Securities LLC	$	(52,938,522	)	$	(94,059	)
Merrill Lynch, Pierce, Fenner & Smith Inc.	$	25,580,138		$	(24,164	)
Morgan Stanley & Co. LLC	$	27,380,294		$	(146,807	)
Nomura Securities International, Inc.	$	98,179,094		$	(40,764	)
RBC Capital Markets LLC	$	(7,925,938	)	$	8,363
RBS Securities Inc.	$	14,288,297		$	(58,737	)
Wells Fargo Securities, LLC	$	16,070,172		$	(51,053	)

(g) All or a portion of security has been pledged in connection with outstanding financial futures contracts.

(h) Security is perpetual in nature and has no stated maturity date.

289

See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

(i) Investments in issuers considered to be an affiliate of the Master Portfolio during the year ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at December 31, 2012		Net Activity			Shares Held at December 31, 2013		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		598,803,477		(59,991,029	)		538,812,448	$	773,827
BlackRock Cash Funds: Prime, SL Agency Shares		116,380,753		(48,194,702	)		68,186,051	$	89,501

(j) Represents the current yield as of report date.

(k) All or a portion of security was purchased with the cash collateral from loaned securities.

· For Master Portfolio compliance purposes, the Master Portfolio‘s industry classifications refer to any one or more of the industry sub- classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

· Financial futures contracts outstanding as of December 31, 2013 were as follows:

Contracts Purchased (Sold)	Issue		Exchange		Expiration		Notional Value			Unrealized Appreciation (Depreciation)
1,401		2-Year US Treasury Note		Chicago Board of Trade		March 2014		USD	307,957,312	$	(614,465	)
1,331		5-Year US Treasury Note		Chicago Board of Trade		March 2014		USD	158,804,938		(988,509	)
167		10-Year Australian T-Bond		Sydney Futures Exchange		March 2014		USD	17,097,937		111,142
559		Euro-Bund Future		Eurex		March 2014		USD	107,023,950		(700,544	)
714		Ultra Long-Term US Treasury Bond		Chicago Board of Trade		March 2014		USD	97,282,500		(1,740,920	)
(778)		10-Year Canada Bond Future		Montreal		March 2014		USD	92,825,342		927,610
(101)		10-Year Japan Bond		Tokyo Stock Exchange		March 2014		USD	137,454,373		448,760
(1,716)		10-Year US Treasury Note		Chicago Board of Trade		March 2014		USD	211,148,438		487,057
(409)		UK Long Gilt Bond		NYSE Liffe		March 2014		USD	72,171,331		620,760
(110)		US Long Bond		Chicago Board of Trade		March 2014		USD	14,114,375		103,332
Total										$	(1,345,777	)

· Foreign currency exchange contracts outstanding as of December 31, 2013 were as follows:

Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
GBP	19,208,700		USD	31,099,462	Barclays Bank PLC		1/02/14	$	709,183
USD	30,842,584		GBP	19,208,700	BNP Paribas S.A.		1/02/14		(966,061	)
AUD	5,358,000		USD	4,745,538	Citibank N.A.		3/12/14		17,263
AUD	1,144,000		USD	1,017,165	Deutsche Bank AG		3/12/14		(247	)
AUD	5,355,000		USD	4,737,569	Deutsche Bank AG		3/12/14		22,566
AUD	1,634,000		USD	1,481,661	Royal Bank of Canada		3/12/14		(29,175	)
AUD	10,682,000		USD	9,514,340	UBS AG		3/12/14		(18,961	)
AUD	27,975,000		USD	25,440,045	Westpac Banking Corp.		3/12/14		(572,678	)
AUD	22,795,000		USD	20,729,431	Westpac Banking Corp.		3/12/14		(466,638	)
CAD	16,652,000		USD	15,502,317	Citibank N.A.		3/12/14		147,470
CAD	516,000		USD	483,732	HSBC Bank PLC		3/12/14		1,212
CAD	25,556,000		USD	24,033,366	Royal Bank of Canada		3/12/14		(15,472	)
CAD	5,027,000		USD	4,731,388	Royal Bank of Canada		3/12/14		(6,941	)
EUR	6,843,000		USD	9,388,623	BNP Paribas S.A.		3/12/14		25,082
EUR	13,645,000		USD	18,720,995	BNP Paribas S.A.		3/12/14		50,014
EUR	24,428,000		USD	33,634,644	Credit Suisse International		3/12/14		(29,793	)
EUR	11,002,000		USD	15,148,533	Credit Suisse International		3/12/14		(13,418	)
EUR	6,881,000		USD	9,449,436	JPMorgan Chase Bank N.A.		3/12/14		16,544
GBP	1,075,000		USD	1,762,645	Barclays Bank PLC		3/12/14		16,648
GBP	7,231,000		USD	11,801,990	Barclays Bank PLC		3/12/14		166,448
GBP	7,715,000		USD	12,607,159	Barclays Bank PLC		3/12/14		162,375
GBP	2,744,000		USD	4,532,594	Barclays Bank PLC		3/12/14		9,156
GBP	7,719,000		USD	12,618,357	BNP Paribas S.A.		3/12/14		157,797
GBP	1,133,000		USD	1,854,564	Citibank N.A.		3/12/14		20,729
GBP	5,732,000		USD	9,489,502	HSBC Bank PLC		3/12/14		(2,144	)
GBP	278,000		USD	455,768	Royal Bank of Scotland PLC		3/12/14		4,366
GBP	20,435,000		USD	33,570,414	Royal Bank of Scotland PLC		3/12/14		252,713
GBP	5,788,000		USD	9,458,865	State Street Bank and Trust Co.		3/12/14		121,181
JPY	191,400,000		USD	1,862,991	Barclays Bank PLC		3/12/14		(44,919	)
JPY	729,850,000		USD	7,093,981	BNP Paribas S.A.		3/12/14		(161,272	)

290 See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

· Foreign currency exchange contracts outstanding as of December 31, 2013 were as follows (concluded):

Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
JPY	145,550,000		USD	1,412,553	Citibank N.A.		3/12/14	$	(30,001	)
JPY	729,850,000		USD	7,096,843	Credit Suisse International		3/12/14		(164,135	)
JPY	145,550,000		USD	1,415,425	Deutsche Bank AG		3/12/14		(32,873	)
JPY	195,100,000		USD	1,904,230	Goldman Sachs International		3/12/14		(51,012	)
JPY	238,500,000		USD	2,327,826	Goldman Sachs International		3/12/14		(62,359	)
JPY	3,063,900,000		USD	29,833,496	UBS AG		3/12/14		(730,084	)
NOK	12,044,000		USD	1,962,778	Barclays Bank PLC		3/12/14		17,909
NOK	75,232,000		USD	12,218,896	Credit Suisse International		3/12/14		153,331
NZD	1,735,000		USD	1,410,277	Goldman Sachs International		3/12/14		9,916
NZD	4,680,000		USD	3,824,730	HSBC Bank PLC		3/12/14		6,108
NZD	4,645,000		USD	3,807,572	Westpac Banking Corp.		3/12/14		(5,383	)
NZD	2,280,000		USD	1,880,608	Westpac Banking Corp.		3/12/14		(14,302	)
NZD	567,000		USD	468,743	Westpac Banking Corp.		3/12/14		(4,622	)
SEK	21,810,000		USD	3,302,794	Bank of America N.A.		3/12/14		84,158
SEK	21,812,000		USD	3,334,679	BNP Paribas S.A.		3/12/14		52,583
SEK	103,567,000		USD	15,767,969	Credit Suisse International		3/12/14		315,317
SEK	18,714,000		USD	2,847,201	HSBC Bank PLC		3/12/14		58,962
USD	2,776,823		AUD	3,126,000	Citibank N.A.		3/12/14		(1,922	)
USD	5,268,501		AUD	5,931,000	Citibank N.A.		3/12/14		(3,647	)
USD	11,595,284		AUD	13,045,750	Credit Suisse International		3/12/14		(1,265	)
USD	7,081,143		AUD	7,966,931	Credit Suisse International		3/12/14		(772	)
USD	904,896		AUD	1,022,000	Deutsche Bank AG		3/12/14		(3,574	)
USD	5,947,727		AUD	6,689,250	Royal Bank of Canada		3/12/14		1,559
USD	3,632,227		AUD	4,085,069	Royal Bank of Canada		3/12/14		952
USD	31,195,300		CAD	33,095,000	Citibank N.A.		3/12/14		92,146
USD	1,871,226		CAD	2,010,000	Citibank N.A.		3/12/14		(17,801	)
USD	1,418,153		CAD	1,508,000	Royal Bank of Canada		3/12/14		913
USD	5,690,257		CAD	6,069,000	Royal Bank of Canada		3/12/14		(13,476	)
USD	34,172,815		EUR	24,797,500	BNP Paribas S.A.		3/12/14		59,654
USD	34,173,504		EUR	24,798,000	BNP Paribas S.A.		3/12/14		59,655
USD	9,394,337		EUR	6,817,000	Citibank N.A.		3/12/14		16,399
USD	4,924,554		EUR	3,570,000	Credit Suisse International		3/12/14		13,415
USD	2,372,614		EUR	1,720,000	Credit Suisse International		3/12/14		6,463
USD	9,364,336		EUR	6,810,000	Deutsche Bank AG		3/12/14		(3,973	)
USD	9,436,906		EUR	6,881,000	Deutsche Bank AG		3/12/14		(29,075	)
USD	4,823,657		EUR	3,539,000	Deutsche Bank AG		3/12/14		(44,837	)
USD	9,177,959		EUR	6,661,000	Deutsche Bank AG		3/12/14		14,625
USD	9,440,196		EUR	6,864,000	HSBC Bank PLC		3/12/14		(2,398	)
USD	9,450,084		EUR	6,877,000	HSBC Bank PLC		3/12/14		(10,394	)
USD	9,435,743		EUR	6,899,000	HSBC Bank PLC		3/12/14		(55,000	)
USD	9,372,269		EUR	6,810,000	Royal Bank of Canada		3/12/14		3,961
USD	2,814,340		EUR	2,058,000	Royal Bank of Scotland PLC		3/12/14		(16,788	)
USD	24,323,753		GBP	14,903,000	Barclays Bank PLC		3/12/14		(343,047	)
USD	3,928,466		GBP	2,400,000	Citibank N.A.		3/12/14		(43,910	)
USD	11,348,393		GBP	6,908,000	Royal Bank of Scotland PLC		3/12/14		(85,429	)
USD	8,484,164		GBP	5,175,000	Royal Bank of Scotland PLC		3/12/14		(81,272	)
USD	7,970,660		JPY	821,300,000	Citibank N.A.		3/12/14		169,285
USD	7,986,868		JPY	821,300,000	Deutsche Bank AG		3/12/14		185,493
USD	5,682,571		JPY	583,600,000	UBS AG		3/12/14		139,064
USD	17,084,827		NOK	104,601,000	Barclays Bank PLC		3/12/14		(117,259	)
USD	4,271,166		NOK	26,150,000	Barclays Bank PLC		3/12/14		(29,314	)
USD	3,861,770		NOK	23,777,000	Credit Suisse International		3/12/14		(48,460	)
USD	1,398,410		NOK	8,617,000	HSBC Bank PLC		3/12/14		(18,693	)
USD	3,337,622		NZD	4,056,000	Citibank N.A.		3/12/14		17,562
USD	466,297		NZD	567,000	Royal Bank of Canada		3/12/14		2,177
USD	2,820,455		SEK	18,434,000	JPMorgan Chase Bank N.A.		3/12/14		(42,226	)
USD	25,383,636		SEK	165,903,000	JPMorgan Chase Bank N.A.		3/12/14		(380,028	)
Total								$	(1,434,696	)

· Exchange-traded options purchased as of December 31, 2013 were as follows:

Description	Put/ Call		Strike Price			Expiration Date		Contracts		Market Value
Eurodollar 1-Year Mid-Curve Options		Put		USD	98.50		6/13/14		407	$	20,350

291

See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2013

· Exchange-traded options written as of December 31, 2013 were as follows:

Description

Put/ Call

Strike Price

Expiration Date

Contracts

Market Value

Eurodollar 1-Year Mid-Curve Options

Put

USD

98.25

6/13/14

407

$

(12,719

)

· Centrally cleared credit default swaps — sold protection outstanding as of December 31, 2013 were as follows:

Index

Receive Fixed Rate

Clearing house

Expiration Date

Credit Rating1

Notional Amount (000)2

Unrealized Appreciation

Dow Jones CDX North America High Yield Series 20, Version 1

5.00

%

Chicago Mercantile

6/20/18

B+

USD    16,200

$

968,279

Dow Jones CDX North America High Yield Series 21, Version 1

5.00

%

Chicago Mercantile

12/20/18

B+

USD    56,700

97,000

Total

$

1,065,279

¹  Using S&P’s rating of the underlying securities of the index.

²  The maximum potential amount the Master Portfolio may pay should a negative credit event take place as defined under the terms of the agreement.

· Centrally cleared interest rate swaps outstanding as of December 31, 2013 were as follows:

Fixed Rate

Floating Rate

Clearinghouse

Effective Date

Expiration Date

Notional Amount (000)

Unrealized Appreciation (Depreciation)

2.27%3

3-Month LIBOR

Chicago Mercantile

N/A

8/31/20

USD      22,700

$

(138,800

)

2.37%4

3-Month LIBOR

Chicago Mercantile

3/31/145

2/15/21

USD    101,430

1,355,046

2.91%4

6-Month EURIBOR

Chicago Mercantile

3/31/145

3/07/25

GBP      54,230

2,103,367

3.66%4

3-Month LIBOR

Chicago Mercantile

N/A

8/15/39

USD        8,360

313,719

Total

$

3,633,332

³  Master Portfolio pays the floating rate and receives the fixed rate.

⁴  Master Portfolio pays the fixed rate and receives the floating rate.

⁵  Forward swap.

· Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

· Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master Portfolio has the ability to access

· Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

· Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments)

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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master Portfolio’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Master Portfolio’s policy regarding valuation of investments and derivative financial instruments, please refer to Note 2 of the Notes to Financial Statements.

292 See Notes to Financial Statements.

COREALPHA BOND MASTER PORTFOLIO

SCHEDULE OF INVESTMENTS (Concluded)

December 31, 2013

The following tables summarize the Master Portfolio’s investments and derivative financial instruments categorized in the disclosure hierarchy as of December 31, 2013:

	Level 1		Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—	$	437,389,422		$	3,237,812	$	440,627,234
Corporate Bonds		—		1,021,134,921			—		1,021,134,921
Foreign Agency Obligations		—		33,619,410			—		33,619,410
Municipal Bonds		—		25,451,443			—		25,451,443
Non-Agency Mortgage-Backed Securities		—		262,016,151			—		262,016,151
US Government Sponsored Agency Securities		—		1,680,767,240			—		1,680,767,240
US Treasury Obligations		—		529,875,705			—		529,875,705
Preferred Securities	$	4,533,480		8,657,916			—		13,191,396
Short-Term Securities		606,998,499		—			—		606,998,499
Options Purchased:
Interest Rate Contracts		20,350		—			—		20,350
Liabilities:
Investments:
TBA Sale Commitments		—		(437,139,631	)		—		(437,139,631	)
Total	$	611,552,329	$	3,561,772,577		$	3,237,812	$	4,176,562,718

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	1,065,279			—	$	1,065,279
Interest rate contracts	$	2,698,661			3,772,132			—		6,470,793
Foreign currency exchange contracts		—			3,382,354			—		3,382,354
Liabilities:
Foreign currency exchange contracts		—			(4,817,050	)		—		(4,817,050	)
Interest rate contracts		(4,057,157	)		(138,800	)		—		(4,195,957	)
Total	$	(1,358,496	)	$	3,263,915			—	$	1,905,419

¹  Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options written. Swaps, financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options written are shown at value.

The carrying amount for certain of the Master Portfolio’s assets and/or liabilities approximates fair value for financial statement purposes. As of December 31, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Cash	$	286,711		—			—	$	286,711
Foreign currency at value		3,764,854		—			—		3,764,854
Cash pledged for centrally cleared swaps		7,520,000		—			—		7,520,000
Liabilities:
Collateral on securities loaned at value		—	$	(441,171,726	)		—		(441,171,726	)
Due to broker		—		(110,000	)		—		(110,000	)
Total	$	11,571,565	$	(441,281,726	)		—	$	(429,710,161	)

There were no transfers between levels during the year ended December 31, 2013.

293

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2013

	CoreAlpha Bond Master Portfolio
Assets
Investments at value — unaffiliated (including securities loaned at value of $427,998,147) (cost — $4,028,664,048)	$	4,006,703,850
Investments at value — affiliated (cost — $606,998,499)		606,998,499
Cash		286,711
Foreign currency at value (cost — $3,710,753)		3,764,854
Cash pledged for centrally cleared swaps		7,520,000
TBA sale commitments receivable		438,193,195
Contributions receivable from investors		59,653,246
Interest receivable		18,212,460
Unrealized appreciation on foreign currency exchange contracts		3,382,354
Variation margin receivable on centrally cleared swaps		931,618
Principal paydowns receivable		98,004
Securities lending income receivable — affiliated		58,352
Other income receivable — affiliated		61,204
Total assets		5,145,864,347
Liabilities
Collateral on securities loaned at value		441,171,726
Due to broker		110,000
Investments purchased payable		882,860,499
TBA sale commitments at value (proceeds — $438,193,195)		437,139,631
Withdrawals payable to investors		5,811,469
Unrealized depreciation on foreign currency exchange contracts		4,817,050
Investment advisory fees payable		667,937
Variation margin payable on financial futures contracts		67,431
Professional fees payable		36,339
Trustees’ fees payable		22,585
Options written at value (premiums received — $162,031)		12,719
Total liabilities		1,772,717,386
Net Assets	$	3,373,146,961
Net Assets Consist of
Investors’ capital	$	3,391,932,044
Net unrealized appreciation/depreciation		(18,785,083	)
Net Assets	$	3,373,146,961

294 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

	CoreAlpha Bond Master Portfolio
Investment Income
Interest	$	73,906,166
Securities lending — affiliated — net		579,082
Dividends		361,411
Income — affiliated		284,246
Other income — affiliated		61,204
Total income		75,192,109
Expenses
Investment advisory		7,393,778
Independent Trustees		96,546
Professional		53,476
Miscellaneous		610
Total expenses		7,544,410
Less fees waived by Manager		(150,022	)
Total expenses after fees waived		7,394,388
Net investment income		67,797,721
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(12,175,934	)
Financial futures contracts		(14,092,028	)
Options written		558,424
Swaps		16,919,783
Foreign currency transactions		3,989,562
		(4,800,193	)
Net change in unrealized appreciation/depreciation on:
Investments		(133,167,667	)
Financial futures contracts		(1,729,479	)
Options written		149,312
Swaps		2,231,449
Foreign currency translations		(2,207,740	)
		(134,724,125	)
Total realized and unrealized loss		(139,524,318	)
Net Decrease in Net Assets Resulting from Operations	$	(71,726,597	)

295

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS

	CoreAlpha Bond Master Portfolio
	Year Ended December 31,
Increase (Decrease) in Net Assets:	2013			2012
Operations
Net investment income	$	67,797,721		$	60,933,108
Net realized gain (loss)		(4,800,193	)		49,324,984
Net change in unrealized appreciation/depreciation		(134,724,125	)		13,288,577
Net increase (decrease) in net assets resulting from operations		(71,726,597	)		123,546,669
Capital Transactions
Proceeds from contributions		1,313,533,374			4,690,973,134
Value of withdrawals		(658,300,198	)		(4,387,331,971	)
Net increase in net assets derived from capital transactions		655,233,176			303,641,163
Net Assets
Total increase in net assets		583,506,579			427,187,832
Beginning of year		2,789,640,382			2,362,452,550
End of year	$	3,373,146,961		$	2,789,640,382

296 See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

FINANCIAL HIGHLIGHTS

	CoreAlpha Bond Master Portfolio
	Year Ended December 31,
	2013		2012		2011			2010			2009
Total Investment Return
Total investment return		(2.39)%		4.95%		8.38%			6.56%			11.67%
Ratios to Average Net Assets
Total expenses		0.25%		0.25%		0.27%			0.36%			0.35%
Total expenses after fees waived		0.24%		0.24%		0.26%			0.35%			0.35%
Net investment income		2.23%		2.36%		3.22%			3.19%			4.33%
Supplemental Data
Net assets, end of year (000)	$	3,373,147	$	2,789,640	$	2,362,453		$	2,150,563		$	1,633,960
Portfolio turnover1		986%		2,128%		1,646%	2		621%	3		278%	4

¹  Includes TBA transactions, if any.

²  Includes mortgage dollar roll transactions. Excluding these transactions the portfolio turnover rate would have been 1,510%.

³  Excluding TBA transactions, the portfolio turnover rate would have been 170%.

⁴  Excluding TBA transactions, the portfolio turnover rate would have been 199%.

297

See Notes to Financial Statements.

MASTER INVESTMENT PORTFOLIO

COREALPHA BOND MASTER PORTFOLIO

NOTES TO FINANCIAL STATEMENTS

1. Organization:

CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio (“MIP”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. MIP is organized as a Delaware statutory trust.

2. Significant Accounting Policies:

The Master Portfolio’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. The following is a summary of the significant accounting policies followed by the Master Portfolio:

Valuation: US GAAP defines fair value as the price the Master Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Master Portfolio determines the fair values of its financial instruments at market value using independent dealers or pricing services under policies approved by the Board of Trustees of MIP (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Master Portfolio for all financial instruments.

The Master Portfolio values its bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche. Financial futures contracts traded on exchanges are valued at their last sale price. To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services. Swap agreements are valued utilizing quotes received daily by the Master Portfolio’s pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. Certain centrally cleared swaps are valued at the price determined by the relevant exchange or clearinghouse. Investments in open-end registered investment companies are valued at net asset value each business day. Short-term

securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

Securities and other assets and liabilities denominated in foreign currencies are translated into US dollars using exchange rates determined as of the close of business on the New York Stock Exchange (“NYSE”). Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that the Master Portfolio might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deem relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. The market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and is adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment

298

MASTER INVESTMENT PORTFOLIO

COREALPHA BOND MASTER PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (Continued)

speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Master Portfolio’s pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Master Portfolio’s net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to affect the value of such instruments materially, those instruments may be Fair Value Assets and be valued at their fair value, as determined in good faith by the Global Valuation Committee using a pricing service and/or policies approved by the Board.

Foreign Currency: The Master Portfolio’s books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, the Master Portfolio’s investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Master Portfolio does not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated on the Statement of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Master Portfolio reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases where the Master Portfolio enters into certain investments (e.g., dollar rolls, TBA sale commitments, financial futures contracts, foreign currency exchange contracts, options written and swaps) that would be “senior securities” for 1940 Act purposes, the Master Portfolio may segregate or designate on its books and records cash or liquid securities having a market value at least equal to the amount of the Master Portfolio’s future obligations under such investments. Doing so allows the investment to be excluded from

treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Master Portfolio may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Income Taxes: The Master Portfolio is classified as a partnership for federal income tax purposes. As such, each investor in the Master Portfolio is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Master Portfolio. Therefore, no federal income tax provision is required. It is intended that the Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Master Portfolio files US federal and various state and local tax returns. The statute of limitations on the Master Portfolio’s US federal tax returns remains open for each of the four years ended December 31, 2013. The Master Portfolio’s 2011 federal tax return is currently under examination. No other income tax returns are currently under examination. The statutes of limitations on the Master Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Master Portfolio’s facts and circumstances and does not believe there are any uncertain tax positions that require recognition of a tax liability.

Other: Expenses directly related to the Master Portfolio are charged to the Master Portfolio. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

3. Securities and Other Investments:

Asset-Backed and Mortgage-Backed Securities: The Master Portfolio may invest in asset-backed securities. Asset-backed securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in an underlying pool of assets, or as debt instruments, which are also known as collateralized obligations, and are generally issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay

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their loans. An increased prepayment rate with respect to an asset-backed security subject to such a prepayment feature will have the effect of shortening the maturity of the security. In addition, the Master Portfolio may have to subsequently reinvest the proceeds at lower interest rates. If the Master Portfolio has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

The Master Portfolio may purchase certain mortgage pass-through securities. There are a number of important differences among the agencies and instrumentalities of the US government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States but are supported by the right of the issuer to borrow from the Treasury.

Inflation-Indexed Bonds: The Master Portfolio may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation rises or falls, the principal value of inflation-indexed bonds will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of US Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Multiple Class Pass-Through Securities: The Master Portfolio may invest in multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities. These multiple class securities may be issued by Ginnie Mae, US government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by, and multiple class pass-through securities represent direct ownership interests in, a pool of residential or commercial mortgage loans or mortgage pass-through securities (the “Mortgage Assets”), the payments on which are used to make payments on the CMOs or multiple pass-through securities. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in

response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated pre-payments of principal, the Master Portfolio may not fully recoup its initial investment in IOs.

Stripped Mortgage-Backed Securities: The Master Portfolio may invest in stripped mortgage-backed securities issued by the US government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (IOs) and principal (POs) distributions on a pool of Mortgage Assets. The Master Portfolio also may invest in stripped mortgage-backed securities that are privately issued.

Zero-Coupon Bonds: The Master Portfolio may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Capital Trusts and Trust Preferred Securities: The Master Portfolio may invest in capital trusts and/or trust preferred securities. These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured as either fixed or adjustable coupon securities that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation will pay interest to the trust, which will then be distributed to holders of the trust preferred securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for federal income tax purposes. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.

Preferred Stock: The Master Portfolio may invest in preferred stock. Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s

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board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

TBA Commitments: The Master Portfolio may enter into TBA commitments. TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. The Master Portfolio generally enters into TBA commitments with the intent to take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

Mortgage Dollar Roll Transactions: The Master Portfolio may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, the Master Portfolio will not be entitled to receive interest and principal payments on the securities sold. The Master Portfolio accounts for mortgage dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions may increase the Master Portfolio’s portfolio turnover rate. Mortgage dollar rolls involve the risk that the market value of the securities that the Master Portfolio is required to purchase may decline below the agreed upon repurchase price of those securities.

Securities Lending: The Master Portfolio may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral. The initial collateral received by the Master Portfolio should have a value of at least 102% of the current value of the loaned securities for securities traded on US exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Master Portfolio and any additional required collateral is delivered to the Master Portfolio on the next business day. Securities lending income, as disclosed in the Statement of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Master Portfolio earns dividend or interest income on the securities loaned but does not receive interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of securities on loan and the value of the related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value, and collateral on

securities loaned at value, respectively. The cash collateral invested by the securities lending agent, BlackRock Institutional Trust Company, N.A. (“BTC”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Master Portfolio under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Master Portfolio, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of a MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and the Master Portfolio can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of the Master Portfolio’s securities lending agreements by counterparty which are subject to offset under a MSLA as of December 31, 2013:

Counterparty	Securities Loaned at Value		Cash Collateral Received1			Net Amount
Barclays Capital, Inc.	$	2,845,571	$	(2,845,571	)		—
Citigroup Global Markets, Inc.		154,190,290		(154,190,290	)		—
Credit Suisse Securities (USA) LLC		9,303,493		(9,303,493	)		—
Deutsche Bank Securities Inc.		50,326,014		(50,326,014	)		—
Goldman Sachs & Co.		41,630,215		(41,630,215	)		—
Jefferies LLC		163,660		(163,660	)
JP Morgan Securities LLC		12,226,905		(12,226,905	)		—
Merrill Lynch, Pierce, Fenner & Smith Inc.		92,742,144		(92,742,144	)		—
Morgan Stanley		57,320,395		(57,320,395	)		—
RBS Securities Inc.		3,146,816		(3,146,816	)		—
Wells Fargo Securities LLC		4,102,644		(4,102,644	)		—
Total	$	427,998,147	$	(427,998,147	)		—

¹  Collateral with a value of $441,171,726 has been received in connection with securities lending agreements. Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

The risks of securities lending also include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate this risk, the Master Portfolio benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities lent. The Master Portfolio also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the year ended December 31, 2013, any securities on loan were collateralized by cash.

4. Derivative Financial Instruments:

The Master Portfolio engages in various portfolio investment strategies using derivative contracts both to increase the return of the Master

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Portfolio and/or to economically hedge its exposure to certain risks such as credit risk, interest rate risk or foreign currency exchange rate risk. These contracts may be transacted on an exchange or OTC.

Financial Futures Contracts: The Master Portfolio purchases and/or sells financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Master Portfolio and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date.

Upon entering into a financial futures contract, the Master Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited, if any, is recorded on the Statement of Assets and Liabilities as cash pledged for financial futures contracts. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin. Variation margin is recorded by the Master Portfolio as unrealized appreciation or depreciation, and if applicable, as a receivable or payable for variation margin in the Statement of Assets and Liabilities.

When the contract is closed, the Master Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest or foreign currency exchange rates and the underlying assets.

Foreign Currency Exchange Contracts: The Master Portfolio enters into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from, foreign currencies (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by the Master Portfolio, help to manage the overall exposure to the currencies in which some of the investments held by the Master Portfolio are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Master Portfolio as an unrealized gain or loss. When the contract is closed, the Master Portfolio records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies.

Options: The Master Portfolio purchases and writes call and put options to increase or decrease its exposure to underlying instruments (including

interest rate risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Master Portfolio purchases (writes) an option, an amount equal to the premium paid (received) by the Master Portfolio is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Master Portfolio enters into a closing transaction), the Master Portfolio realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Master Portfolio writes a call option, such option is “covered,” meaning that the Master Portfolio holds the underlying instrument subject to being called by the option counterparty. When the Master Portfolio writes a put option, such option is covered by cash in an amount sufficient to cover the obligation.

In purchasing and writing options, the Master Portfolio bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Master Portfolio may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Master Portfolio purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

Swaps: The Master Portfolio enters into swap agreements in which the Master Portfolio and a counterparty agree either to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”). Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation).

For OTC swaps, any upfront premiums paid are recorded as assets and any upfront fees received are recorded as liabilities and are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the OTC swap. Payments received or made by the Master Portfolio for OTC swaps are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, the Master Portfolio will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Master Portfolio’s basis in the contract, if any. Generally, the basis of the contracts is the premium received or paid.

In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Master Portfolio’s counterparty on the swap agreement

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becomes the CCP. The Master Portfolio is required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, the Master Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities as cash pledged for centrally cleared swaps. The daily change in valuation of centrally cleared swaps is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gain (loss) in the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

· Credit default swaps — The Master Portfolio enters into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which it is not otherwise exposed (credit risk). The Master Portfolio may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps on single-name issuers are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a guarantee from the protection seller to make a specific payment should a negative credit event take place with

respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation accelerators, repudiation, moratorium or restructuring). Credit default swaps on traded indexes are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a write-down, principal or interest shortfall or default of all or individual underlying securities included in the index occur. As a buyer, if an underlying credit event occurs, the Master Portfolio will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Master Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

· Interest rate swaps — The Master Portfolio enters into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds, which may decrease when interest rates rise (interest rate risk). Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time.

· Forward swaps — The Master Portfolio may enter into forward interest rate swaps and forward total return swaps. In a forward swap, the Master Portfolio and the counterparty agree to make either periodic net payments beginning on a specified future effective date or a net payment at termination, unless terminated earlier.

The following is a summary of the Master Portfolio’s derivative financial instruments categorized by risk exposure:

Fair Values of Derivative Financial Instruments as of December 31, 2013
Derivative Assets
	Statement of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/depreciation1; Unrealized appreciation on centrally  cleared swaps1; Investments at value — unaffiliated2	$	6,491,143
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts		3,382,354
Credit contracts	Unrealized appreciation on centrally cleared swaps1		1,065,279
Total		$	10,938,776

Derivative Liabilities
	Statement of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/depreciation1; Unrealized depreciation on centrally cleared swaps1; Options written at value2	$	4,195,957
Foreign currency exchange contracts	Unrealized depreciation on foreign currency exchange contracts		4,817,050
Total		$	9,013,007

¹  Includes cumulative appreciation/depreciation on financial futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

²  Includes options purchased at value as reported in the Schedule of Investments.

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The Effect of Derivative Financial Instruments in the Statement of Operations Year Ended December 31, 2013
	Net Realized Gain (Loss) From
Interest rate contracts:
Financial futures contracts	$	(14,092,028	)
Swaps		8,281,442
Options3		(208,248	)
Foreign currency exchange contracts:
Foreign currency transactions		3,908,263
Credit contracts:
Swaps		8,638,341
Total	$	6,527,770
	Net Change in Unrealized Appreciation/Depreciation on
Interest rate contracts:
Financial futures contracts	$	(1,729,479	)
Swaps		2,742,426
Options3		379,024
Foreign currency exchange contracts:
Foreign currency translations		(2,259,790	)
Credit contracts:
Swaps		(510,977	)
Total	$	(1,378,796	)

³  Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.

For the year ended December 31, 2013, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		7,436
Average number of contracts sold		1,262
Average notional value of contracts purchased	$	1,152,594,863
Average notional value of contracts sold	$	353,561,736
Options:
Average number of option contracts purchased		481
Average number of option contracts written		482
Average notional value of options contracts purchased	$	302,462
Average notional value of options contracts written	$	210,250
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		100
Average number of contracts — US dollars sold		97
Average US dollar amounts purchased	$	457,918,804
Average US dollar amounts sold	$	452,967,208
Credit default swaps:
Average number of contracts — buy protection		1
Average number of contracts — sell protection		3
Average notional value — buy protection	$	34,490,000
Average notional value — sell protection	$	77,675,000
Interest rate swaps:
Average number of contracts — pays fixed rate		5
Average number of contracts — receives fixed rate		1
Average notional value — pays fixed rate	$	384,743,505
Average notional value — receives fixed rate	$	15,233,175

Counterparty Credit Risk: A derivative contract may suffer a mark to market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

The Master Portfolio’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Master Portfolio. For OTC options purchased, the Master Portfolio bears the risk of loss of the amount of

the premiums paid plus the positive change in market values net of any collateral held by the Master Portfolio should the counterparty fail to perform under the contracts. Options written by the Master Portfolio do not typically give rise to counterparty credit risk, as options written generally obligate the Master Portfolio, and not the counterparty to perform.

With exchange traded purchased options and futures and centrally cleared swaps, there is less counterparty credit risk to the Master Portfolio since the exchange or clearinghouse, as counterparty to such

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instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Master Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Credit risk exists in exchange traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Master Portfolio.

In order to better define its contractual rights and to secure rights that will help the Master Portfolio mitigate its counterparty risk, the Master Portfolio may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Master Portfolio and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Master Portfolio may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Master Portfolio’s net assets decline by a stated percentage or the Master Portfolio fails to meet the terms of its ISDA Master Agreements, which would cause the Master Portfolio to accelerate payment of any net liability owed to the counterparty.

Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Master Portfolio and the counterparty.

Cash collateral that has been pledged to cover obligations of the Master Portfolio and cash collateral received from the counterparty, if any, is reported separately on the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Master Portfolio, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g. $500,000) before a transfer is required, which is determined at the close of business of the Master Portfolio and any additional required collateral is delivered to/pledged by the Master Portfolio on the next business day. Typically, the Master Portfolio and counterparties are not permitted to sell, re-pledge or use the collateral they receive. To the extent amounts due to the Master Portfolio from its counterparties are not fully collateralized, contractually or otherwise, the Master Portfolio bears the risk of loss from counterparty non-performance. The Master Portfolio attempts to mitigate counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Master Portfolio does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

At December 31, 2013, the Master Portfolio’s derivative assets and liabilities (by type) are as follows:

	Assets			Liabilities
Derivative Financial Instruments:
Financial futures contracts		—		$	67,431
Foreign currency exchange contracts	$	3,382,354			4,817,050
Swaps		931,618			—
Options		20,350	1		12,719
Total derivative assets and liabilities in the Statement of Assets and Liabilities		4,334,322			4,897,200
Derivatives not subject to a master netting agreement or similar agreement (“MNA”)		(951,968	)		(80,150	)
Total assets and liabilities subject to a MNA	$	3,382,354		$	4,817,050

¹  Includes options purchased at value, which is included in Investments at value — unaffiliated and reported in the Schedule of Investments.

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NOTES TO FINANCIAL STATEMENTS (Continued)

The following table presents the Master Portfolio’s derivative assets by counterparty net of amounts available for offset under a MNA and net of the related collateral received by the Master Portfolio as of December 31, 2013:

Counterparty	Derivative Assets Subject to a MNA by Counterparty		Derivatives Available for Offset1			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets2
Bank of America N.A.	$	84,158		—			—		—	$	84,158
Barclays Bank PLC		1,081,719	$	(534,539	)		—		—		547,180
BNP Paribas S.A.		404,785		(404,785	)		—		—		—
Citibank N.A.		480,854		(97,281	)		—		—		383,573
Credit Suisse International		488,526		(257,843	)		—		—		230,683
Deutsche Bank AG		222,684		(114,579	)		—		—		108,105
Goldman Sachs International		9,916		(9,916	)		—		—		—
HSBC Bank PLC		66,282		(66,282	)		—		—		—
JPMorgan Chase Bank N.A.		16,544		(16,544	)		—		—		—
Royal Bank of Canada		9,562		(9,562	)		—		—		—
Royal Bank of Scotland PLC		257,079		(183,489	)		—		—		73,590
State Street Bank and Trust Co.		121,181		—			—		—		121,181
UBS AG		139,064		(139,064	)		—		—		—
Total	$	3,382,354	$	(1,833,884	)		—		—	$	1,548,470

The following table presents the Master Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral pledged by the Master Portfolio as of December 31, 2013:

Counterparty	Derivative Liabilities Subject to a MNA by Counterparty		Derivatives Available for Offset1			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities3
Barclays Bank PLC	$	534,539	$	(534,539	)		—		—		—
BNP Paribas S.A.		1,127,333		(404,785	)		—		—	$	722,548
Citibank N.A.		97,281		(97,281	)		—		—		—
Credit Suisse International		257,843		(257,843	)		—		—		—
Deutsche Bank AG		114,579		(114,579	)		—		—		—
Goldman Sachs International		113,371		(9,916	)		—		—		103,455
HSBC Bank PLC		88,629		(66,282	)		—		—		22,347
JPMorgan Chase Bank N.A.		422,254		(16,544	)		—		—		405,710
Royal Bank of Canada		65,064		(9,562	)		—		—		55,502
Royal Bank of Scotland PLC		183,489		(183,489	)		—		—		—
UBS AG		749,045		(139,064	)		—		—		609,981
Westpac Banking Corp.		1,063,623		—			—		—		1,063,623
Total	$	4,817,050	$	(1,833,884	)		—		—	$	2,983,166

¹ The amount of derivatives available for offset is limited to the amount of the assets and/or liabilities that are subject to a MNA.

² Net amount represents the net amount receivable from the counterparty in the event of default.

³ Net amount represents the net amount payable due to the counterparty in the event of default.

5. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock.

MIP, on behalf of the Master Portfolio, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Master Portfolio’s investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory services. The Manager is responsible for the management of the Master Portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Master Portfolio. For such services, the Master Portfolio pays the Manager a monthly fee based on a

percentage of the Master Portfolio’s average daily net assets at the following annual rates:

Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		0.25	%
$1 Billion — $3 Billion		0.24	%
$3 Billion — $5 Billion		0.23	%
$5 Billion — $10 Billion		0.22	%
Greater than $10 Billion		0.21	%

The Manager entered into a sub-advisory agreement with each of BlackRock International Limited (“BIL”) and BlackRock Fund Advisors (“BFA”), both affiliates of the Manager. The Manager pays BIL and BFA, for services they provide with respect to the Master Portfolio, a monthly fee that is a percentage of the investment advisory fees paid by the Master Portfolio to BAL.

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NOTES TO FINANCIAL STATEMENTS (Continued)

The fees and expenses of MIP’s trustees who are not “interested persons” of MIP, as defined in the 1940 Act (“Independent Trustees”), counsel to the Independent Trustees and MIP’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Master Portfolio. The Manager has contractually agreed to cap the expenses of the Master Portfolio at the rate at which the Master Portfolio pays an advisory fee to the Manager, as applicable, by providing an offsetting credit against the investment advisory fees paid by the Master Portfolio in an amount equal to the independent expenses. This contractual waiver is effective through April 30, 2014. The amount of the waiver, if any, is shown as fees waived by Manager in the Statement of Operations.

The Master Portfolio received an exemptive order from the Securities and Exchange Commission permitting it, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BTC, an affiliate of the Manager, as the securities lending agent. BTC may, on behalf of the Master Portfolio, invest cash collateral received by the Master Portfolio for such loans, among other things, in a private investment company managed by BTC or in registered money market funds advised by BTC or its affiliates. The market value of securities on loan and the value of the related collateral, if applicable, is shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BTC, if any, is disclosed in the Schedule of Investments. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates paid to, or fees paid by, borrowers of securities. The Master Portfolio retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Master Portfolio benefits from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC does not receive any fees for managing the cash collateral. The share of income earned by the Master Portfolio is shown as securities lending — affiliated — net in the Statement of Operations. For the year ended December 31, 2013, BTC received $311,611 in securities lending agent fees related to securities lending activities for the Master Portfolio.

The Master Portfolio recorded a payment from an affiliate to compensate for foregone securities lending revenue, which is shown as Other income — affiliated in the Statement of Operations.

Certain officers and/or trustees of MIP are officers and/or directors of BlackRock or its affiliates.

6. Purchases and Sales:

Purchases and sales of investments including paydowns, mortgage dollar rolls and TBA transactions and excluding short-term securities and US government securities for the year ended December 31, 2013, were $27,889,678,191 and $27,446,804,520, respectively.

Purchases and sales of US government securities for the Master Portfolio for the year ended December 31, 2013, were $4,850,464,292 and $4,756,199,351, respectively.

Transactions in options written for the year ended December 31, 2013, were as follow:

	Calls
	Contracts			Premiums Received
Outstanding options, beginning of year		—			—
Options written		1,171		$	278,511
Options exercised		—			—
Options expired		(98	)		(25,875	)
Options closed		(1,073	)		(252,636	)
Outstanding options, end of year		—			—

	Puts
	Contracts			Premiums Received
Outstanding options, beginning of year		—			—
Options written		1,829		$	707,379
Options exercised		—			—
Options expired		(1,129	)		(449,738	)
Options closed		(293	)		(95,610	)
Outstanding options, end of year		407		$	162,031

7. Bank Borrowings:

MIP, on behalf of the Master Portfolio, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $800 million credit agreement with a group of lenders, under which the Master Portfolio may borrow to fund shareholder redemptions. The agreement expires in April 2014. Excluding commitments designated for a certain individual fund, other Participating Funds, including the Master Portfolio, can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.065% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. Participating Funds paid administration and arrangement fees, which, along with commitment fees, were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. The Master Portfolio did not borrow under the credit agreement during the year ended December 31, 2013.

8. Concentration, Market and Credit Risk:

In the normal course of business, the Master Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Master Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Master Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Master Portfolio may be exposed to counterparty credit risk, or the risk that an entity with which the Master Portfolio has unsettled or open transactions may fail to or be unable to perform on its commitments. The Master Portfolio manages counterparty credit risk by entering into transactions only with

307

MASTER INVESTMENT PORTFOLIO

COREALPHA BOND MASTER PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (Concluded)

counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Master Portfolio to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Master Portfolio’s

exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Master Portfolio.

The Master Portfolio invests a significant portion of its assets in fixed-income securities and/or uses derivatives tied to the fixed income markets. See the Schedule of Investments for these securities and derivatives. Changes in market interest rates or economic conditions, including the Federal Reserve’s decision in December to taper its quantitative easing policy, may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Master Portfolio may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

The Master Portfolio invests a significant portion of its assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Please see the Schedule of Investments for these securities. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions.

9. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Master Portfolio through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

308

MASTER INVESTMENT PORTFOLIO

COREALPHA BOND MASTER PORTFOLIO

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of Master Investment Portfolio and the Interestholders of CoreAlpha Bond Master Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio, at December 31, 2013, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Master Portfolio’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We

conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2013 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 18, 2014

309

MASTER INVESTMENT PORTFOLIO

OFFICERS AND TRUSTEES

Name, Address and Year of Birth	Position(s) Held with MIP	Length of Time Served as a Trustee2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Trustees1
Ronald W. Forbes 55 East 52nd Street New York, NY 10055 1940	Co-Chairman of the Board and Trustee	Since 2009	Professor Emeritus of Finance, School of Business, State University of New York at Albany since 2000.	33 RICs consisting of 107 Portfolios	None
Rodney D. Johnson 55 East 52nd Street New York, NY 10055 1941	Co-Chairman of the Board and Trustee	Since 2009	President, Fairmount Capital Advisors, Inc. from 1987 to 2013; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia from 2004 to 2012; Director, The Committee of Seventy (civic) from 2006 to 2012; Director, Fox Chase Cancer Center from 2004 to 2011.	33 RICs consisting of 107 Portfolios	None
David O. Beim 55 East 52nd Street New York, NY 10055 1940	Trustee	Since 2009	Professor of Professional Practice at the Columbia University Graduate School of Business since 1991; Trustee, Phillips Exeter Academy from 2002 to 2012; Chairman, Wave Hill, Inc. (public garden and cultural center) from 1990 to 2006.	33 RICs consisting of 107 Portfolios	None
Dr. Matina S. Horner 55 East 52nd Street New York, NY 10055 1939	Trustee	Since 2009	Executive Vice President, Teachers Insurance and Annuity Association and College Retirement Equities Fund from 1989 to 2003.	33 RICs consisting of 107 Portfolios	NSTAR (electric and gas utility)
Herbert I. London 55 East 52nd Street New York, NY 10055 1939	Trustee	Since 2009	President, London Center for Policy Research since 2012; Professor Emeritus, New York University since 2005; John M. Olin Professor of Humanities, New York University from 1993 to 2005 and Professor thereof from 1980 to 2005; President Emeritus, Hudson Institute (policy research organization) from 2011 to 2012, President thereof from 1997 to 2011 and Trustee from 1980 to 2012; Chairman of the Board of Trustees for Grantham University since 2006; Director, InnoCentive, Inc. (global internet services) since 2005; Director, Cerego, LLC (educational software) since 2005; Director, Cybersettle (online adjudication) since 2009; Director, AIMS Worldwide, Inc. (marketing) from 2007 to 2012.	33 RICs consisting of 107 Portfolios	None
Ian A. MacKinnon 55 East 52nd Street New York, NY 10055 1948	Trustee	Since 2012	Director, Kennett Capital, Inc. (investments) since 2006; Director, Free Library of Philadelphia from 1998 to 2008.	33 RICs consisting of 107 Portfolios	None
Cynthia A. Montgomery 55 East 52nd Street New York, NY 10055 1952	Trustee	Since 2009	Professor, Harvard Business School since 1989; Director, McLean Hospital from 2005 to 2012; Director, Harvard Business School Publishing from 2005 to 2010.	33 RICs consisting of 107 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Joseph P. Platt 55 East 52nd Street New York, NY 10055 1947	Trustee	Since 2009	Director, Jones and Brown (Canadian insurance broker) since 1998; General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Director, The West Penn Allegheny Health System (a not-for-profit health system) from 2008 to 2013; Partner, Amarna Corporation, LLC (private investment company) from 2002 to 2008.	33 RICs consisting of 107 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company)
Robert C. Robb, Jr. 55 East 52nd Street New York, NY 10055 1945	Trustee	Since 2009	Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981.	33 RICs consisting of 107 Portfolios	None
Toby Rosenblatt 55 East 52nd Street New York, NY 10055 1938	Trustee	Since 2009	President, Founders Investments Ltd. (private investments) since 1999; Director, Forward Management, LLC since 2007; Director, College Access Foundation of California (philanthropic foundation) since 2009; Director, A.P. Pharma, Inc. (specialty pharmaceuticals) from 1983 to 2011; Director, The James Irvine Foundation (philanthropic foundation) from 1998 to 2008.	33 RICs consisting of 107 Portfolios	None

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MASTER INVESTMENT PORTFOLIO

OFFICERS AND TRUSTEES (Continued)

Name, Address and Year of Birth	Position(s) Held with MIP	Length of Time Served as a Trustee2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Trustees1 (concluded)
Kenneth L. Urish 55 East 52nd Street New York, NY 10055 1951	Trustee	Since 2009	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Immediate past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	33 RICs consisting of 107 Portfolios	None
Frederick W. Winter 55 East 52nd Street New York, NY 10055 1945	Trustee	Since 2009	Director, Alkon Corporation (pneumatics) since 1992; Professor and Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh from 2005 to 2013 and Dean thereof from 1997 to 2005; Director, Tippman Sports (recreation) from 2005 to 2013; Director, Indotronix International (IT services) from 2004 to 2008.	33 RICs consisting of 107 Portfolios	None
	1   Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The Board has approved extensions in terms of Trustees who turn 72 prior to December 31, 2013. 2   Date shown is the earliest date a person has served for the MIP covered by this annual report. In connection with the acquisition of Barclays Global Investors by BlackRock, Inc. (“BlackRock”) in December 2009, the Trustees were elected to the MIP’s Board. As a result, although the chart shows certain Trustees as joining the MIP’s board in 2009, those Trustees first became members of the boards of other funds advised by BlackRock Advisors, LLC or its affiliates as follows: David O. Beim, 1998; Ronald W. Forbes, 1977; Dr. Matina S. Horner, 2004; Rodney D. Johnson, 1995; Herbert I. London, 1987; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1998; Toby Rosenblatt, 2005; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999.
Interested Trustees3
Paul L. Audet 55 East 52nd Street New York, NY 10055 1953	Trustee	Since 2011	Senior Managing Director of BlackRock and Head of U.S. Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.	144 RICs consisting of 278 Portfolios	None
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947	Trustee	Since 2007	Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly BlackRock Bond Allocation Target Shares) from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	144 RICs consisting of 278 Portfolios	None
	3   Mr. Audet is an “interested person,” as defined in the 1940 Act, of the MIP based on his position with BlackRock and its affiliates. Mr. Gabbay is an “interested person” of the MIP based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of the BlackRock registered closed-end funds and Directors of other BlackRock registered open-end funds. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

311

MASTER INVESTMENT PORTFOLIO

OFFICERS AND TRUSTEES (Concluded)

Name, Address and Year of Birth	Position(s) Held with the MIP	Length of Time Served	Principal Occupation(s) During Past Five Years
MIP Officers1
John M. Perlowski 55 East 52nd Street New York, NY 10055 1964	President and Chief Executive Officer	Since 2010	Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Services since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
Richard Hoerner, CFA 55 East 52nd Street New York, NY 10055 1958	Vice President	Since 2009	Managing Director of BlackRock since 2000; Head of the Global Cash Group since 2013; Co-head of the Global Cash and Securities Lending Group from 2010 to 2013; Member of the Cash Management Group Executive Committee since 2005.
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977	Vice President	Since 2009	Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009; and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.
Christopher Stavrakos, CFA 55 East 52nd Street New York, NY 10055 1959	Vice President	Since 2009	Managing Director of BlackRock since 2006; Co-head of BlackRock’s Cash Management Portfolio Management Group since 2006; Senior Vice President, CIO, and Director of Liability Management for the Securities Lending Group at Mellon Bank from 1999 to 2006.
Neal Andrews 55 East 52nd Street New York, NY 10055 1966	Chief Financial Officer	Since 2009	Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay Fife 55 East 52nd Street New York, NY 10055 1970	Treasurer	Since 2009	Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959	Chief Compliance Officer and Anti-Money Laundering Officer	Since 2009	Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
Benjamin Archibald 55 East 52nd Street New York, NY 10055 1975	Secretary	Since 2012	Managing Director of BlackRock since 2014; Director of BlackRock from 2010 to 2013; Assistant Secretary of the BlackRock-advised funds from 2010 to 2012; General Counsel and Chief Operating Officer of Uhuru Capital Management from 2009 to 2010; Executive Director and Counsel of Goldman Sachs Asset Management from 2005 to 2009.
	1   Officers of the MIP serve at the pleasure of the Board.

312

Pursuant to Securities and Exchange Commission Staff guidance contained in Letter to Chief Financial Officers from Lawrence A. Friend, dated November 7, 1997, “Investment Co. Accounting Guidance,” the foregoing State Farm Mutual Fund Trust annual report included as Item 1 on this Form N-CSR and sent to shareholders of registrant, includes the financial statements and notes to financial statements of seven series of Master Investment Portfolio (MIP). MIP is unaffiliated with registrant and neither registrant nor the certifying officers to this Form N-CSR, have any control over the preparation or content of the information included in MIP’s financial statements and notes to financial statements included herein.

ITEM 2. CODE OF ETHICS.

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrants’ principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (each a “covered person”). During the period covered by this Form N-CSR, registrant did not make any amendment to any provisions of such code of ethics that applies to a covered person and that relates to any element of such code set forth in paragraph (b) of Item 2 of Form N-CSR, and registrant did not grant any waiver from such code of ethics provisions. Registrant hereby undertakes to provide a copy of such code of ethics to any person upon request, without charge. To request a copy of the code of ethics, contact the registrant at 1-800-447-4930.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Registrant’s board of trustees has determined that Alan Latshaw and Anita Nagler, members of the registrant’s Audit Committee, each have all of the attributes to be deemed an “audit committee financial expert,” as such term is defined in Instruction 2(b) to Item 3 of Form N-CSR. Mr. Latshaw and Ms. Nagler are “independent” as such term is defined in paragraph (a)(2) of Item 3 of Form N-CSR.

As indicated in Instruction 2(d) to Item 3 of Form N-CSR, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert pursuant to this Item 3 of Form N-CSR. The designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations, or liability that are greater than the duties, obligations, and liability imposed on such person as a member of the Audit Committee and board of trustees in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not affect the duties, obligations, or liability of any other member of the Audit Committee or board of trustees.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees

Billed to registrant for fiscal year ending December 31, 2013: $ 476,213

Billed to registrant for fiscal year ending December 31, 2012: $ 425,941

The audit fees for December 31, 2013 are based on amounts billed and expected to be billed to registrant by the registrant’s independent registered public accountant and include an estimated amount from the registrant’s independent registered public accountant for the out-of-pocket expenses it expects to bill to registrant for that time period.

(b) Audit-Related Fees

Billed to registrant for fiscal year ending December 31, 2013: $ 0

Billed to registrant for fiscal year ending December 31, 2012: $ 0

The nature of the services comprising the fees disclosed under this category: not applicable

Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Reg. S-X:

Billed for fiscal year ending December 31, 2013: $ 5,625

Billed for fiscal year ending December 31, 2012: $ 0

The nature of the services comprising the fees disclosed under this category: The audit-related fees were billed to registrant’s administrator, State Farm Investment Management Corp., by the registrant’s independent registered public accountant. These fees related to the performance of a review of the accounting services transition related to the State Farm S&P 500 Index Fund’s investment directly in individual securities after withdrawing all its assets from the S&P 500 Stock Master Portfolio.

(c) Tax Fees

Billed to registrant for fiscal year ending December 31, 2013: $ 81,850

Billed to registrant for fiscal year ending December 31, 2012: $109,138

The nature of the services comprising the fees disclosed under this category:

Includes fees for reviewing the registrant’s compliance with tax qualification tests relating to asset diversification, gross income, and distribution requirements to maintain the registrant’s status as a Regulated Investment Company under current provisions of the Internal Revenue Code. Also includes fees for reviewing the registrant’s tax returns (federal, state, and excise), a review of income tax and excise tax positions, issues and tax accounting methods with respect to the registrant, and research and related activities regarding the State Farm S&P 500 Index Fund’s investment directly in individual securities after withdrawing all its assets from the S&P 500 Stock Master Portfolio.

Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Reg. S-X:

Billed for fiscal year ending December 31, 2013: $ 0

Billed for fiscal year ending December 31, 2012: $ 0

The nature of the services comprising the fees disclosed under this category: not applicable

(d) All Other Fees

Billed to registrant for fiscal year ending December 31, 2013: $ 0

Billed to registrant for fiscal year ending December 31, 2012: $ 0

The nature of the services comprising the fees disclosed under this category include: not applicable

Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Reg. S-X:

Billed for fiscal year ending December 31, 2013: $ 20,600

Billed for fiscal year ending December 31, 2012: $ 20,000

The nature of the services comprising the fees disclosed under this category:

The fees were billed to registrant’s transfer agent, State Farm Investment Management Corp., by the registrant’s independent registered public accountant. These fees related to the performance of an internal control review of the internal controls of the registrant’s transfer agent and issuance of a report in accordance with Rule 17Ad-13 under the Securities Exchange Act of 1934 by the registrant’s independent registered public accountant.

(e)(1) The Audit Committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X:

The Audit Committee (the “Committee”) will approve and recommend to the Board, the selection, retention or termination of the independent registered public accountants of the Trust, and review the independent registered public accountant’s fees to determine whether those fees appear to be appropriate for the services rendered.

a. Any engagement shall be pursuant to a written engagement letter approved by the Committee, which shall provide, among other things, that:

- the Committee shall be directly responsible for the appointment, compensation and oversight of the independent registered public accountants; and

- the independent registered public accountants shall report directly to the Committee.

b. Pre-approve any engagement of the independent registered public accountants to provide any services (other than the prohibited non-audit services specified in section c. below) to the Trust, or to SFIMC [State Farm Investment Management Corp.] and any entity controlling, controlled by, or under common control with SFIMC that provides ongoing services to the Trust (if the engagement relates directly to the operations and financial reporting of the Trust), including the fees and other compensation to be paid to the independent registered public accountants. The Chairman of the Committee may grant such pre-approval. Any such delegated pre-approval shall be presented to the Committee by the Chairman at the next meeting of the Committee.

(1) Pre-approval of non-audit services for the Trust is waived, if:

a. the aggregate amount of all non-audit services provided to the Trust is less than 5% of the total fees paid by the Trust to its independent registered public accountants during the fiscal year in which the non-audit services are provided;

b. the services were not recognized by management at the time of the engagement as non-audit services; and

c. such services are promptly brought to the attention of the Committee by management and the Committee approves them (which may be by delegation as provided for above) prior to the completion of the audit.

(2) Pre-approval of non-audit services for SFIMC or any entity controlling, controlled by, or under common control with SFIMC that provides ongoing services to the Trust is waived, if:

a. the aggregate amount of all non-audit services provided is less than 5% of the total fees paid by the Trust, SFIMC and any entity controlling, controlled by, or under common control with SFIMC that provides ongoing services to the Trust to its independent registered public accountants during the fiscal year in which the non-audit services are provided that would have to be pre-approved;

b. the services were not recognized by management at the time of the engagement as non-audit services; and

c. such services are promptly brought to the attention of the Committee by management and the Committee approves them (which may be by delegation) prior to the completion of the audit.

c. The independent registered public accountants shall not perform any of the following non-audit services for the Trust:

(1) bookkeeping or other services related to the accounting records or financial statements of the Trust;

(2) financial information systems design and implementation;

(3) appraisal or valuation services, fairness opinions, or contribution-in-kind reports;

(4) actuarial services;

(5) internal audit outsourcing services;

(6) management functions or human resources;

(7) broker or dealer, investment adviser, or investment banking services;

(8) legal services and expert services unrelated to the audit; and

(9) any other services that the Public Company Accounting Oversight Board determines are impermissible.

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were rendered to the registrant and approved by the Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

	Paragraph (b)	Paragraph (c)	Paragraph (d)
Fiscal year ending December 31, 2013:	not applicable	not applicable	not applicable
Fiscal year ending December 31, 2012:	not applicable	not applicable	not applicable

The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X:

	Paragraph (b)	Paragraph (c)	Paragraph (d)
Fiscal year ending December 31, 2013:	100%	0%	100%
Fiscal year ending December 31, 2012:	not applicable	0%	100%

(f) Not applicable.

(g) Aggregate non-audit fees billed by the registrant’s accountant for services rendered to registrant:

Fiscal year ending December 31, 2013:     $ 81,850

Fiscal year ending December 31, 2012:     $109,138

Aggregate non-audit fees billed by the registrant’s accountant for services rendered to registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser):

Fiscal year ending December 31, 2013:     $ 20,600

Fiscal year ending December 31, 2012:     $ 20,000

Aggregate non-audit fees billed by the registrant’s accountant for services rendered to an entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant:

Fiscal year ending December 31, 2013:     $ 0

Fiscal year ending December 31, 2012:     $ 0

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. INVESTMENTS.

(a) The information required by this Item 6(a) is included as part of the report to shareholders under Item 1 of this Form N-CSR.

(b) Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

There were no material changes to the procedures by which shareholders may recommend nominees to the State Farm Mutual Fund Trust Board of Trustees.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer evaluated the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of this report (the “Evaluation Date”), and based on their evaluation as of the Evaluation Date of these controls and procedures as required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)) (as applicable), concluded that the registrant’s disclosure controls and procedures are effective.

(b) No change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Not applicable.

(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto as EX-99.CERT.

(a)(3) Not applicable.

(b) Certification of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-14(b) or 240.15d-14(b))(as applicable), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350): Attached hereto as EX-99.906CERT.

SIGNATURES

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

State Farm Mutual Fund Trust

By	/s/ Michael L. Tipsord
	Michael L. Tipsord President

Date     March 3, 2014

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

By	/s/ Michael L. Tipsord
	Michael L. Tipsord
	President

Date     March 3, 2014

By	/s/ Paul J. Smith
	Paul J. Smith
	Senior Vice President and Treasurer

Date     March 3, 2014