The following table is a roll forward of the Level 3 investments of our pension and postretirement benefit plan assets during the year ended May 30, 2010: The net change in Level 3 assets attributable to unrealized gains at May 30, 2010, were $72.2 million for our pension plan assets, and $1.2 million for our postretirement plan assets. Expected Rate of Return on Plan Assets Our expected rate of return on plan assets is determined by our asset allocation, our historical long-term investment performance, our estimate of future long-term returns by asset class (using input from our actuaries, investment services, and investment managers), and long-term inflation assumptions. We review this assumption annually for each plan, however, our annual investment perfor- mance for one particular year does not, by itself, significantly influence our evaluation. Weighted-average asset allocations for the past two fiscal years for our defined benefit pension and other postretirement benefit plans are as follows: The investment objective for our defined benefit pension and other postretirement benefit plans is to secure the benefit obli- gations to participants at a reasonable cost to us. Our goal is to optimize the long-term return on plan assets at a moderate level of risk. The defined benefit pension and other postretirement portfolios are broadly diversified across asset classes. Within asset classes, the portfolios are further diversified across invest- ment styles and investment organizations. For the defined benefit pension and other postretirement benefit plans, the long-term investment policy allocations are: 30 percent to equities in the United States; 20 percent to international equities; 10 percent to private equities; 30 percent to fixed income; and 10 percent to real General Mills 76 2010 2009 2010 2009 Fiscal Year ................................... Fiscal Year ................................... Defined Benefit Pension Plans ................................... Other Postretirement Benefit Plans ................................... ............................................................................................................................................................................................................................................................................................................................................................................................ Asset category: United States equities 32.6% 29.5% 37.3% 32.6% International equities 17.1 19.1 18.3 18.4 Private equities 14.7 13.6 9.9 12.0 Fixed income 22.4 24.4 28.1 28.4 Real assets 13.2 13.4 6.4 8.6 ............................................................................................................................................................................................................................................................................................................................................................................................ Total 100.0% 100.0% 100.0% 100.0% In Millions Balance as of May 31, 2009 Transfers In/(Out) Purchases, Sales Issuances, and Settlements (Net) Net Gain/(Loss) Balance as of May 30, 2010 ............................................................................................................................................................................................................................................................................................................................................................................................ Pension benefit plan assets: Equity $423.9 $— $17.0 $71.9 $512.8 Fixed income 4.2 — (1.2) 0.9 3.9 Real asset investments 275.2 — 25.0 (1.5) 298.7 Other investments 0.5 — (0.3) 0.1 0.3 ............................................................................................................................................................................................................................................................................................................................................................................................ Fair value activity of pension level 3 plan assets $703.8 $— $40.5 $71.4 $815.7 Postretirement benefit plan assets: Equity $ 23.8 $— $ (1.5) $ 3.4 $ 25.7 Fixed income 1.5 — — 0.2 1.7 Real asset investments 17.0 — (0.6) (1.8) 14.6 ............................................................................................................................................................................................................................................................................................................................................................................................ Fair value activity of postretirement benefit level 3 plan assets: $ 42.3 $— $ (2.1) $ 1.8 $ 42.0