General Motors 2015 Annual Report Download - page 86

Table of Contents













Common and preferred stocks $ 1,079
$ 1
$ 1
$ 1,081
$ 1,959
$ 3
$ —
$ 1,962
Government and agency debt securities(a) —
3,258
—
3,258
—
3,614
—
3,614
Corporate and other debt securities —
1,953
1
1,954
—
1,986
—
1,986
Other investments, net 47
47
642
736
138
46
726
910
Net plan assets subject to leveling $ 1,126
$ 5,259
$ 644
7,029
$ 2,097
$ 5,649
$ 726
8,472

Investment funds
4,475
4,440
Private equity and debt investments
529
509
Real estate investments
1,095
1,262
Total plan assets measured at net asset value
6,099
6,211
Other plan assets (liabilities), net(b)
(138)
(14)

$ 12,990
$ 14,669
__________
(a) Includes U.S. and sovereign government issues.
(b) Cash held by the plans, net of amounts receivable/payable for unsettled security transactions and payables for investment manager fees, custody fees and other expenses.
The activity attributable to U.S. and non-U.S. Level 3 defined benefit pension plan investments was insignificant in the years ended December 31, 2015
and 2014.

Investment funds consist primarily of funds of hedge funds, equity funds and fixed income funds. Funds of hedge funds managers typically seek to achieve
their objectives by allocating capital across a broad array of funds and/or investment managers. Equity funds invest in U.S. common and preferred stocks as
well as similar equity securities issued by companies incorporated, listed or domiciled in developed and/or emerging markets countries. Fixed income funds
include investments in high quality funds and to a lesser extent, high yield funds. High quality fixed income funds invest in government securities,
investment-grade corporate bonds and mortgage and asset-backed securities. High yield fixed income funds invest in high yield fixed income securities
issued by corporations which are rated below investment grade. Other investment funds also included in this category primarily represent multi-strategy
funds that invest in broadly diversified portfolios of equity, fixed income and derivative instruments.
Private equity and debt investments primarily consist of investments in private equity and debt funds. These investments provide exposure to and benefit
from long-term equity investments in private companies, including leveraged buy-outs, venture capital and distressed debt strategies.
Real estate investments include funds that invest in entities which are primarily engaged in the ownership, acquisition, development, financing, sale and/or
management of income-producing real estate properties, both commercial and residential. These funds typically seek long-term growth of capital and current
income that is above average relative to public equity funds.

The assets of the pension plans include certain investment funds, private equity and debt investments and real estate investments. Investment managers
may be unable to quickly sell or redeem some or all of these investments at an amount close or equal to fair value in order to meet a plan's liquidity
requirements or to respond to specific events such as deterioration in the creditworthiness of any particular issuer or counterparty.
Illiquid investments held by the plans are generally long-term investments that complement the long-term nature of pension obligations and are not used
to fund benefit payments when currently due. Plan management monitors liquidity risk on an ongoing basis and has procedures in place that are designed to
maintain flexibility in addressing plan-specific, broader industry and market liquidity events.
82