This excerpt taken from the PCG 10-K filed Feb 18, 2005.
The asset allocation of PG&E Corporation's and the Utility's pension and other benefit plans at December 31, 2004 and 2003, and target 2005 allocation was as follows:
Equity securities include a small amount (less than 0.1% of total plan assets) of PG&E Corporation common stock.
The maturity of debt securities at December 31, 2004 and 2003 ranges from zero to 45 years, with a weighted average maturity of approximately 6.32 years.
PG&E Corporation's and the Utility's investment strategy for all plans is to maintain actual asset weightings within 5% of the target asset allocations. Whenever the actual weighting exceeds the target weighting by 5%, the asset holdings are rebalanced.
A benchmark portfolio for each asset class is set based on market capitalization and valuations of equities and the durations and credit quality of debt securities. Investment managers for each asset
class are retained to periodically adjust, or actively manage, the combined portfolio against the benchmark. Active management covers approximately 70% of the U.S. equity, 60% of the non-U.S. equity, and virtually 100% of the debt security portfolios.