Aetna 2015 Annual Report Download - page 130
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Annual Report- Page 124
Pension Assets with changes in fair value measured on a recurring basis at December 31, 2014 were as follows:
(Millions) Level 1 Level 2 Level 3 Total
Debt securities:
U.S. government securities $ 452.1 $ 98.3 $ — $ 550.4
States, municipalities and political subdivisions — 132.2 — 132.2
U.S. corporate securities — 1,244.8 1.5 1,246.3
Foreign securities — 161.5 — 161.5
Residential mortgage-backed securities — 221.1 — 221.1
Commercial mortgage-backed securities — 50.2 .5 50.7
Other asset-backed securities — 32.3 — 32.3
Redeemable preferred securities — 8.2 — 8.2
Total debt securities 452.1 1,948.6 2.0 2,402.7
Equity securities:
U.S. Domestic 1,243.8 5.5 — 1,249.3
International 686.6 — — 686.6
Domestic real estate 28.9 — — 28.9
Total equity securities 1,959.3 5.5 — 1,964.8
Other investments:
Real estate — — 469.7 469.7
Common/collective trusts (1) — 610.0 — 610.0
Other assets — .2 471.2 471.4
Total other investments — 610.2 940.9 1,551.1
Total pension investments (2) $ 2,411.4 $ 2,564.3 $ 942.9 $ 5,918.6
(1) The assets in the underlying funds of common/collective trusts are comprised of $337.4 million of equity securities and
$272.6 million of debt securities.
(2) Excludes $228.4 million of cash and cash equivalents and other payables.
The changes in the balances of Level 3 Pension Assets during 2015 and 2014 were as follows:
2015
Real Estate Other Total
Beginning balance $ 469.7 $ 473.2 $ 942.9
Actual return on plan assets 46.1 38.0 84.1
Purchases, sales and settlements (18.9) (46.2) (65.1)
Transfers out of Level 3 —.7 .7
Ending balance $ 496.9 $ 465.7 $ 962.6
2014
Real Estate Other Total
Beginning balance $ 497.5 $ 396.2 $ 893.7
Actual return on plan assets 43.9 35.7 79.6
Purchases, sales and settlements (71.7) 41.3 (30.4)
Ending balance $ 469.7 $ 473.2 $ 942.9
The Aetna Pension Plan invests in a diversified mix of assets intended to maximize long-term returns while
recognizing the need for adequate liquidity to meet ongoing benefit and administrative obligations. The risk of
unexpected investment and actuarial outcomes is regularly evaluated. This evaluation is performed through
forecasting and assessing ranges of investment outcomes over short- and long-term horizons, and by assessing the
Aetna Pension Plan’s liability characteristics, our financial position and our future potential obligations from both the
pension and general corporate perspectives. Complementary investment styles and techniques are utilized by
multiple professional investment firms to further improve portfolio and operational risk characteristics. Public and