15. Investments (continued) (e) Realised and unrealised gains/(losses) on investments
Group Note
Quoted investments Unquoted investments Investment properties
Derivative financial instruments Currency overlay
Other derivative financial instruments Short term investments
Shares in subsidiary undertakings Foreign exchange
15(a) 15(a) 15(a)
2011 £m
(497.4) 453.9 128.1
11.5 56.4
(0.8) —
1.5 153.2
2010 £m
539.8 626.2 114.1
90.2
(46.8) — —
21.6 1,345.1 Trust
2011 £m
(419.3) 441.7 114.1
11.5 58.9
(0.8)
(86.2) 1.3
121.2
2010 £m
493.5 586.8 110.2
90.2
(47.6) —
58.9 22.0
1,314.0
Gains relating to derivative financial instruments include £11.5 million (2010: £90.2 million) relating to the currency overlay, which comprises forward currency contracts to hedge the Group and Trust’s exposure to foreign currency assets. The remaining gains of £56.4 million (2010: losses of £46.8 million) relate to other forward currency contracts, financial futures, options and warrants. The Trust adopts a policy of hedging a part of its non-base currency exposures using a currency overlay although the actual percentage hedged varies from time to time. The gains and losses relating to the currency overlay are therefore offsetting foreign exchange gains and losses on the foreign currency assets within quoted and unquoted investments.
(f) Reconciliation to Trustee’s Report The presentation of investment balances in note 15 and 17 is in accordance with the statutory asset and liability classifications. However, the investment portfolio is reported by investment strategy for management purposes and for the Trustee’s Report. The distinct classes of assets used and reported on within the Trustee’s Report are: equity; hedge funds; private equity; and property and infrastructure.
This note reconciles the investment asset fair value at the balance sheet date as presented within the Trustee’s Report to the presentation within the Financial Statements. The market value of each asset class presented in the Trustee’s Report and the table below is equal to the net investment assets and liabilities, held within portfolios with that applicable investment strategy.
The assets and liabilities presented in the Consolidated Balance Sheet and notes reconcile to figure 6 in the Trustee’s Report as follows:
Note
Quoted and unquoted investments and investment property Derivative financial instrument asset positions Investment cash and certificates of deposit Other investment assets
Derivative financial instrument liabilities Other investment liabilities
Bond liabilities at amortised cost
Adjusted for Restatement of bond liabilities to fair value Subsidiary held as direct investment in table above
Total assets net of Bond liabilities per figure 6
15(a) 15(b) 15(c) 15(c) 17 17 17
2011 £m
14,012.3 65.9
445.9 102.5 (85.7) (90.1)
(820.1)
(65.6) 11.0
13,576.1
2010 £m
13,791.8 60.5
916.5 185.5 (60.7)
(132.1) (819.6)
(39.7) 6.0
13,908.2
Annual Report 2011 | 61
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