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GE 2010 ANNUAL REPORT 97
    
According to statute, the aggregate holdings of all qualifying employer
securities (e.g., GE common stock) and qualifying employer real
property may not exceed 10% of the fair value of trust assets at the
time of purchase. GE securities represented 3.6% and 3.3% of
trust assets at year-end 2010 and 2009, respectively.
The GE Pension Plan has a broadly diversified portfolio of
investments in equities, fixed income, private equities, real estate
and hedge funds; these investments are both U.S. and non-U.S. in
nature. As of December 31, 2010, no one sector concentration of
assets exceeded 15% of total GE Pension Plan assets.
The following tables present GE Pension Plan investments
measured at fair value.
December 31, 2010 (In millions) Level 1 Level 2 Level 3 Total
EQUITY SECURITIES
U.S. equity securities $11,388 $ 195 $ — $11,583
Non-U.S. equity
securities 9,662 801 — 10,463
DEBT SECURITIES
Fixed income and
cash investment funds — 2,712 65 2,777
U.S. corporate
(a) — 2,377 5 2,382
Residential mortgage-
backed — 1,225 21 1,246
U.S. government and
federal agency — 3,192 — 3,192
Other debt securities
(b) — 1,578 283 1,861
PRIVATE EQUITIES
(c) — — 6,014 6,014
REAL ESTATE
(c) — — 3,373 3,373
OTHER INVESTMENTS
(d) — 53 1,687 1,740
TOTAL INVESTMENTS $21,050 $12,133 $11,448 $44,631
CASH AND OTHER $ 170
TOTAL ASSETS $44,801
December 31, 2009 (In millions) Level 1 Level 2 Level 3 Total
EQUITY SECURITIES
U.S. equity securities $12,216 $ 383 $ — $12,599
Non-U.S. equity
securities 8,120 323 — 8,443
DEBT SECURITIES
Fixed income and
cash investment funds — 2,769 46 2,815
U.S. corporate
(a) — 2,945 6 2,951
Residential mortgage-
backed — 1,053 220 1,273
U.S. government
and federal agency — 2,564 — 2,564
Other debt securities
(b) — 1,527 231 1,758
PRIVATE EQUITIES
(c) — — 5,339 5,339
REAL ESTATE
(c) — — 2,775 2,775
OTHER INVESTMENTS
(d) — — 1,537 1,537
TOTAL INVESTMENTS $20,336 $11,564 $10,154 $42,054
CASH AND OTHER $ 43
TOTAL ASSETS $42,097
(a) Primarily represented investment grade bonds of U.S. issuers from diverse
industries.
(b) Primarily represented investments in non-U.S. corporate bonds and commercial
mortgage-backed securities.
(c) Included direct investments and investment funds.
(d) Substantially all represented hedge fund investments.
PLAN ASSETS
The fair value of the classes of the pension plans’ investments is
presented below. The inputs and valuation techniques used to
measure the fair value of the assets are consistently applied and
described in Note 1.
FAIR VALUE OF PLAN ASSETS
Principal pension plans Other pension plans
(In millions) 2010 2009 2010 2009
Balance at January 1 $42,097 $40,730 $6,919 $5,374
Actual gain on plan assets 5,280 3,859 749 935
Employer contributions 183 168 573 676
Participant contributions 166 167 33 35
Benefits paid (2,925) (2,827) (421) (398)
Acquisitions
(dispositions)—net — — 41 (142)
Exchange rate adjustments — — (91) 439
Balance at December 31 $44,801 $42,097 $7,803 $6,919
ASSET ALLOCATION
Other pension plans
Principal pension plans (weighted average)
2010 2010 2010 2010
Target Actual Target Actual
allocation allocation allocation allocation
Equity securities 34–74%
(a) 49%
(b) 56% 60%
Debt securities
(including cash equivalents) 10–40 26 31 30
Private equities 5–15 13 1 2
Real estate 4–14 8 3 3
Other 1–14 4 9 5
(a) Target allocations were 17–37% for both U.S. equity securities and non-U.S.
equity securities.
(b) Actual allocations were 26% for U.S. equity securities and 23% for non-U.S.
equity securities.
Plan fiduciaries of the GE Pension Plan set investment policies and
strategies for the GE Pension Trust and oversee its investment
allocation, which includes selecting investment managers, com-
missioning periodic asset-liability studies and setting long-term
strategic targets. Long-term strategic investment objectives
include preserving the funded status of the plan and balancing
risk and return. Target allocation percentages are established at
an asset class level by plan fiduciaries. Target allocation ranges
are guidelines, not limitations, and occasionally plan fiduciaries
will approve allocations above or below a target range.
GE Pension Trust assets are invested subject to the following
additional guidelines:
• Short-term securities must generally be rated A1/P1 or better,
except for 15% of such securities that may be rated A2/P2 and
other short-term securities as may be approved by the plan
fiduciaries.
• Real estate investments may not exceed 25% of total assets.
• Investments in restricted securities (excluding real estate invest-
ments) that are not freely tradable may not exceed 30% of total
assets (actual was 18% of trust assets at December 31, 2010).