Just Annual Report and Accounts 2021

JUST GROUP PLC Annual Report and Accounts 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

16 FINANCIAL INVESTMENTS All of the Group’s financial investments are measured at fair value through the profit or loss, and are either designated as such on initial recognition or, in the case of derivative financial assets, classified as held for trading. Fair value Cost 2021 £m 2020 £m 2021 £m 2020 £m Units in liquidity funds 1,310.5 1,128.5 1,310.5 1,128.5 Investment funds 301.8 176.1 290.5 175.2 Debt securities and other fixed income securities 12,924.0 11,061.4 12,141.7 10,001.9 Deposits with credit institutions 52.9 99.7 52.9 99.7 Derivative financial assets 691.2 800.0 – – Loans secured by residential mortgages 7,422.8 8,261.1 4,328.7 4,535.7 Loans secured by commercial mortgages 677.8 592.1 686.3 566.9 Loans secured by ground rents 189.7 114.9 185.9 113.2 Infrastructure loans 993.1 945.0 858.0 796.6 Other loans 117.9 91.0 115.0 88.9 Total 24,681.7 23,269.8 19,969.5 17,506.6

The majority of investments included in debt securities and other fixed income securities are listed investments.

Units in liquidity funds comprise wholly of units in funds which invest in very short dated liquid assets.

Deposits with credit institutions with a carrying value of £50.3m (2020: £97.8m) have been pledged as collateral in respect of the Group’s derivative financial instruments. Amounts pledged as collateral are deposited with the derivative counterparty.

17 FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE This note explains the methodology for valuing the Group’s financial assets and liabilities measured at fair value, including financial investments, and provides disclosures in accordance with IFRS 13, Fair value measurement, including an analysis of such assets and liabilities categorised in a fair value hierarchy based on market observability of valuation inputs. (a) Determination of fair value and fair value hierarchy All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy described as follows, based on the lowest level input that is significant to the fair value measurement as a whole. All Level 1 and 2 assets continue to have pricing available from actively quoted prices or observable market data. Level 1 Inputs to Level 1 fair values are unadjusted quoted prices in active markets for identical assets and liabilities that the entity can access at the measurement date.

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