Prudential 2015 Annual Report Download - page 175

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
As of December 31, 2014
Level 1 Level 2 Level 3 Total
(in millions)
U.S. Equities:
Pooled separate accounts(1) ................................................................ $ 0 $ 881 $ 0 $ 881
Common/collective trusts(1) ................................................................ 0 87 0 87
Subtotal ........................................................................ 968
International Equities:
Pooled separate accounts(2) ................................................................ 0 323 0 323
Common/collective trusts(3) ................................................................ 0 202 0 202
United Kingdom insurance pooled funds(4) .................................................... 0 45 0 45
Subtotal ........................................................................ 570
Fixed Maturities:
Pooled separate accounts(5) ................................................................ 0 1,162 35 1,197
Common/collective trusts(6) ................................................................ 0 490 0 490
U.S. government securities (federal):
Mortgage-backed .................................................................... 0 1 0 1
Other U.S. government securities ........................................................ 0 852 0 852
U.S. government securities (state & other) ..................................................... 0 694 0 694
Non-U.S. government securities ............................................................. 0 16 0 16
United Kingdom insurance pooled funds(7) .................................................... 0 320 0 320
Corporate Debt:
Corporate bonds(8) ................................................................... 0 4,550 14 4,564
Asset-backed ........................................................................ 0 25 0 25
Collateralized Mortgage Obligations(9) ................................................... 0 112 0 112
Interest rate swaps (Notional amount: $1,536) .................................................. 0 (1) 0 (1)
Guaranteed investment contract ............................................................. 0 28 0 28
Other(10) ............................................................................... 712 4 73 789
Unrealized gain (loss) on investment of securities lending collateral(13) ............................. 0 (37) 0 (37)
Subtotal ........................................................................ 9,050
Short-term Investments:
Pooled separate accounts .................................................................. 0 39 0 39
United Kingdom insurance pooled funds ...................................................... 0 1 0 1
Subtotal ........................................................................ 40
Real Estate:
Pooled separate accounts(12) ............................................................... 0 0 465 465
Partnerships ............................................................................. 0 0 336 336
Subtotal ........................................................................ 801
Other:
Partnerships ............................................................................. 0 0 455 455
Hedge funds ............................................................................ 0 0 1,144 1,144
Subtotal ........................................................................ 1,599
Total ...................................................................... $712 $9,794 $2,522 $13,028
(1) These categories invest in U.S. equity funds whose objective is to track or outperform various indexes.
(2) This category invests in a large cap international equity funds whose objective is to track an index.
(3) This category invests in international equity funds, primarily large cap, whose objective is to outperform various indexes. This category also includes a
global equity fund, primarily focused on new market leaders with sustainable competitive advantage.
(4) This category invests in an international equity fund whose objective is to track an index.
(5) This category invests in bond funds, primarily highly rated private placement securities.
(6) This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index.
(7) This category invests in bond funds, primarily highly rated corporate securities.
(8) This category invests in highly rated corporate securities.
(9) This category invests in highly rated Collateralized Mortgage Obligations.
(10) Primarily cash and cash equivalents, short-term investments, payables and receivables, and open future contract positions (including fixed income
collateral).
(11) The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $163 million and the liability
for securities lending collateral is $163 million.
(12) This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index.
(13) The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $717 million and the liability
for securities lending collateral is $754 million.
Prudential Financial, Inc. 2015 Annual Report 173