Company: AILIM
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001002910-25-000055
Chunk: 98

Company: Ameren Illinois Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 98
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 on plan assets for its pension and postretirement plan assets of 6.75% in 2025.

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Table of Contents

Ameren’s investment committee strives to assemble a portfolio of diversified assets that does not create a significant concentration of risks. The investment committee develops asset allocation guidelines between asset classes, and it creates diversification through investments in assets that differ by type (equity, debt, real estate), duration, market capitalization, country, style (growth or value), and industry, among other factors. The diversification of assets is displayed in the target allocation table below. The investment committee also routinely rebalances the plan assets to adhere to the diversification goals. The investment committee’s strategy reduces the concentration of investment risk; however, Ameren is still subject to overall market risk.Ameren’s investment committee developed and implemented a liability hedging investment strategy for its qualified pension plan designed to reduce interest rate risk as part of an objective for its long-term investment strategy. The plan invests in derivative instruments mainly consisting of interest rate futures intended to extend the duration of the pension plan assets so that the assets are more closely aligned with the duration of the liabilities. In addition, part of Ameren’s investment strategy includes participation in a securities lending program, which allows it to lend eligible securities to third party borrowers. All loans are collateralized by at least 102% of the loaned asset’s market value and the collateral is invested in the form of cash, government obligations, and U.S. agency obligations. Ameren’s fair value of securities loaned was $454 million and $234 million as of December 31, 2024 and 2023, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned as of December 31, 2024 and 2023.The following table presents our target allocations and our pension and postretirement plans’ asset categories as of December 31, 2024 and 2023:AssetCategoryTarget Allocation2024Percentage of Plan Assets at December 31,20242023Pension Plan:Cash and cash equivalents0% – 5%3 %1 %Equity securities:U.S. large-capitalization10% – 20%16 %15 %U.S. small- and mid-capitalization3% – 13%9 %8 %Global10% – 20%15 %16 %International4% –