Wells Fargo 2011 Annual Report Download - page 218

Note 20: Employee Benefits and Other Expenses (continued)
Fair Value of Plan Assets
The following table presents the balances of pension plan assets
and other benefit plan assets measured at fair value. Other
benefit plan assets include assets held in a 401(h) trust, which
are invested using the same asset allocation targets as the Cash
Balance Plan, and assets held in a VEBA trust. See Note 17 for
fair value hierarchy level definitions.
Carrying value at year end
Pension plan assets
Other benefits plan assets
(in millions)
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
December 31, 2011
Cash and cash equivalents
$
-
432
-
432
180
33
-
213
Long duration fixed income(1)
376
2,229
1
2,606
13
74
-
87
Intermediate (core) fixed income (2)
88
380
6
474
4
60
-
64
High-yield fixed income
10
366
1
377
-
12
-
12
International fixed income
147
184
-
331
5
6
-
11
Domestic large-cap stocks (3)
1,163
600
2
1,765
39
31
-
70
Domestic mid-cap stocks
364
183
-
547
12
21
-
33
Domestic small-cap stocks (4)
281
10
-
291
9
17
-
26
International stocks (5)
570
349
1
920
19
40
-
59
Emerging market stocks
-
574
-
574
-
19
-
19
Real estate/timber (6)
102
-
355
457
3
-
12
15
Multi-strategy hedge funds (7)
-
-
251
251
-
-
8
8
Private equity
-
-
129
129
-
-
4
4
Other
-
29
46
75
1
1
23
25
Total plan investments
$
3,101
5,336
792
9,229
285
314
47
646
Payable upon return of securities loaned
(145)
(5)
Net receivables (payables)
(23)
(1)
Total plan assets
$
9,061
640
December 31, 2010
Cash and cash equivalents
$
47
488
-
535
220
34
-
254
Intermediate (core) fixed income (2)
297
1,964
10
2,271
10
109
-
119
High-yield fixed income
1
406
1
408
-
14
-
14
International fixed income
-
263
-
263
-
8
-
8
Specialty fixed income
-
95
-
95
-
3
-
3
Domestic large-cap stocks (3)
1,323
867
4
2,194
43
40
-
83
Domestic mid-cap stocks
263
129
-
392
9
20
-
29
Domestic small-cap stocks (4)
851
37
-
888
28
20
-
48
International stocks (5)
948
403
6
1,357
31
46
-
77
Emerging market stocks
-
700
-
700
-
23
-
23
Real estate/timber (6)
105
-
360
465
3
-
12
15
Multi-strategy hedge funds (7)
-
-
313
313
-
-
10
10
Private equity
-
-
112
112
-
-
4
4
Other
-
31
41
72
1
1
22
24
Total plan investments
$
3,835
5,383
847
10,065
345
318
48
711
Payable upon return of securities loaned
(145)
(5)
Net receivables (payables)
(281)
(9)
Total plan assets
$
9,639
697
(1) This category includes a diversified mix of assets which are being managed in accordance with a duration target of approximately 10 years and an emphasis on corporate
credit bonds combined with investments in U.S. Treasury securities and other U.S. agency and non-agency bonds. Investments in this category were made beginning in
2011.
(2) This category includes assets that are primarily intermediate duration, investment grade bonds held in investment strategies benchmarked to the Barclays Capital U.S.
Aggregate Bond Index. Includes U.S. Treasury securities, agency and non-agency asset-backed bonds and corporate bonds.
(3) This category covers a broad range of investment styles, both active and passive approaches, as well as style characteristics of value, core and growth emphasized
strategies. Assets in this category are currently diversified across nine unique investment strategies. For December 31, 2011 and 2010, respectively, approximately 34% and
33% of the assets within this category are passively managed to popular mainstream market indexes including the Standard & Poor's 500 Index; excluding the allocation to
the S&P 500 Index strategy, no single investment manager represents more than 2.5% of total plan assets.
(4) This category consists of a highly diversified combination of four distinct investment management strategies with no single strategy representing more than 2% of total plan
assets. Allocations in this category are primarily spread across actively managed approaches with distinct value and growth emphasized approaches in fairly equal
proportions.
(5) This category includes assets diversified across eight unique investment strategies providing exposure to companies based primarily in developed market, non-U.S. countries
with no single strategy representing more than 2.5% of total plan assets.
(6) This category primarily includes investments in private and public real estate, as well as timber specific limited partnerships; real estate holdings are diversified by
geographic location and sector (e.g., retail, office, apartments).
(7) This category consists of several investment strategies diversified over 30 hedge fund managers. Single manager allocation exposure is limited to 0.15% (15 basis points) of
total plan assets.
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