Just Annual Report and Accounts 2023

Strategic Report | Governance | Financial Statements | 179

19. FINANCIAL INVESTMENTS continued

Fair value

Amortised cost £m

Mandatory £m

Designated £m

Total £m 482

31 December 2022 (restated)

Cash available on demand

482

Financial investments

7,583

15,769

23,352

Other receivables

33

33

Total financial assets Underlying assets

515

7,583

15,769

23,867

– Investment contracts

33

33

– Other

515 515

7,583 7,583

15,736 15,769

23,834 23,867

Total financial assets

Investment contract liabilities

– –

33

33

Loans and borrowings Other financial liabilities

699 623

– – –

699

3,046

3,669

Other payables

96

96

Total financial liabilities

1,418

3,046

33

4,497

Analysis of financial investments

2022 (restated) £m

2023 £m

1,141

Units in liquidity funds

1,174

495

Investment funds

421

13,654

Debt securities and other fixed income securities

11,353

706

Deposits with credit institutions

908

5,681

Loans secured by residential mortgages Loans secured by commercial mortgages

5,306

764 779

584 247 948 134

Long income real estate 1

1,113

Infrastructure loans

164

Other loans

2,377

Derivative financial assets

2,277

Total investments measured at FVTPL Gilts – subject to repurchase agreements Total investments measured at amortised cost

26,874

23,352

2,549 2,549

– –

Total financial investments

29,423

23,352

1. Includes £176m residential and £603m commercial ground rents. For further information on residential ground rents see note 1.7.

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. However as they do not meet the definition of Cash available on demand, liquidity funds are reported within Financial investments. Liquidity funds do however meet the definition of cash equivalents for the purposes of disclosure in the Consolidated statement of cash flows. Deposits with credit institutions with a carrying value of £706m (2022: £892m) have been pledged as collateral in respect of the Group’s derivative financial instruments. Amounts pledged as collateral are deposited with the derivative counterparty. Derivatives are reported within Financial investments where the derivative valuation is in an asset position, or alternatively within Other financial liabilities where the derivative is in a liability position. As explained in note 1.2.2, financial investments are restated by £125m in respect of future funding commitments.

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