7. Discretionary financial assets and liabilities
7.1 Fund structure and transition
Following the establishment of the ISIF in December 2014, the Fund has invested on a commercial basis in a manner designed to support economic activity and employment in Ireland. During 2016, the ISIF implemented a Global Portfolio Transition Strategy (GPTS), which positioned the Global Portfolio as a conservatively managed and liquid portfolio that will provide cash to fund investment opportunities in Ireland as they develop.
The total Discretionary Portfolio amounts to €8.1bn, of which €1.4bn is invested in the Irish Portfolio and €6.7bn is invested in the Global Portfolio. As at 31 December 2016, a total of €2.6bn was committed to the Irish Portfolio.
7.2 Discretionary Portfolio valuation
| Investments at FVTPL | 2016 €m |
2015 €m |
|---|---|---|
| Quoted equities | 335 | 1,091 |
| Direct private equity | 48 | 17 |
| Unquoted equities | 0 | 0 |
| Quoted debt instruments | 1,941 | 581 |
| Unquoted debt instruments | 210 | 185 |
| Property investments | 189 | 236 |
| Private equity investments | 469 | 367 |
| Forestry investments | 41 | 30 |
| Energy investments | 26 | - |
| Infrastructure investments | 130 | 125 |
| Quoted investment funds | 2,912 | 2,306 |
| Unquoted investment funds | 829 | 387 |
| Convertible preference shares | 29 | - |
| Convertible loan | 1 | - |
| Long-term receivables | - | 18 |
| Unrealised gain on equity options | - | 11 |
| Unrealised gain on futures contracts | 9 | - |
| Unrealised gain on foreign exchange contracts | - | 2 |
| Total investments at FVTPL | 7,169 | 5,356 |
Loans and receivables |
||
| Other debt | 366 | 300 |
| Other bonds | 95 | 95 |
| Total loans and receivables | 461 | 395 |
Financial liabilities |
||
| Unrealised loss on equity options | (1) | - |
| Unrealised loss on credit default swaps | (1) | - |
| Unrealised loss on futures contracts | - | (1) |
| Unrealised loss on foreign exchange contracts | (46) | - |
| Total financial liabilities | (48) | (1) |
Cash and cash equivalents |
||
| Treasury bills | 33 | 450 |
| Cash | 394 | 1,281 |
| Total cash and cash equivalents | 427 | 1,731 |
Total discretionary financial assets and liabilities |
8,009 |
7,481 |
Trade and other receivables |
61 |
396 |
| Balance due from brokers | 39 | - |
| Balance due to brokers | - | (15) |
| Other liabilities | (18) | (5) |
Total discretionary net assets |
8,091 |
7,857 |