Ameriprise 2014 Annual Report Download - page 185

The following tables present the Company’s pension plan assets measured at fair value on a recurring basis:
December 31, 2014
Asset Category Level 1 Level 2 Level 3 Total
(in millions)
Equity securities:
U.S. large cap stocks $ 74 $ 84 $ — $ 158
U.S. small cap stocks 59 1 — 60
Non-U.S. large cap stocks 21 33 — 54
Non-U.S. small cap stocks 18 — — 18
Emerging markets 15 24 — 39
Debt securities:
U.S. investment grade bonds 19 15 — 34
U.S. high yield bonds — 27 — 27
Non-U.S. investment grade bonds — 15 — 15
Real estate investment trusts — — 14 14
Hedge funds — — 21 21
Pooled pension funds — 144 — 144
AVC assets (pooled pension funds) — 19 — 19
Cash equivalents 9 — — 9
Total $ 215 $ 362 $ 35 $ 612
December 31, 2013
Asset Category Level 1 Level 2 Level 3 Total
(in millions)
Equity securities:
U.S. large cap stocks $ 97 $ 43 $ — $ 140
U.S. small cap stocks 55 1 — 56
Non-U.S. large cap stocks 21 35 — 56
Non-U.S. small cap stocks 21 — — 21
Emerging markets 14 23 — 37
Debt securities:
U.S. investment grade bonds 17 14 — 31
U.S. high yield bonds — 21 — 21
Non-U.S. investment grade bonds — 14 — 14
Real estate investment trusts — — 2 2
Hedge funds — — 20 20
Pooled pension funds — 126 — 126
Cash equivalents 20 — — 20
Total $ 245 $ 277 $ 22 $ 544
Equity securities are managed to track the performance of common market indices for both U.S. and non-U.S. securities,
primarily across large cap, small cap and emerging market asset classes. Debt securities are managed to track the
performance of common market indices for both U.S. and non-U.S. investment grade bonds as well as a pool of U.S. high
yield bonds. Real estate investment trusts are managed to track the performance of a broad population of investment
grade non-agricultural income producing properties. The Company’s investments in hedge funds include investments in a
multi-strategy fund and an off-shore fund managed to track the performance of broad fund of fund indices. Pooled pension
funds are managed to track a specific benchmark based on the investment objectives of the fund. Cash equivalents
consist of holdings in a money market fund that seeks to equal the return of the three month U.S. Treasury bill.
The fair value of real estate investment trusts is based primarily on the underlying cash flows of the properties within the
trusts which are significant unobservable inputs and classified as Level 3. The fair value of the hedge funds is based on
the proportionate share of the underlying net assets of the funds, which are significant unobservable inputs and classified
as Level 3. The fair value of pooled pension funds and equity securities held in collective trust funds is based on the fund’s
NAV and classified as Level 2 as they trade in principal-to-principal markets. Equity securities and mutual funds traded in
active markets are classified as Level 1. For debt securities and cash equivalents, the valuation techniques and
classifications are consistent with those used for the Company’s own investments as described in Note 14.
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