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 and it continued to do so during 2017. 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.
7.2 Discretionary Portfolio valuation
The total Discretionary Portfolio at 31 December amounts to €8.7bn (2016: €8.1bn). The composition of the Discretionary Portfolio by investment type is as follows:
| Investments at FVTPL | Note | 2017 €m |
2016 €m |
|---|---|---|---|
| Quoted equities | 448 | 335 | |
| Direct private equity | 90 | 48 | |
| Unquoted equities | - | 0 | |
| Quoted debt instruments | 2,183 | 1,941 | |
| Unquoted debt instruments | 242 | 210 | |
| Property fund investments | 167 | 189 | |
| Private equity investments | 580 | 469 | |
| Forestry investments | 46 | 41 | |
| Energy investments | 25 | 26 | |
| Infrastructure investments | 249 | 130 | |
| Quoted investment funds | 2,563 | 2,912 | |
| Unquoted investment funds | 829 | 829 | |
| Convertible preference shares | 46 | 29 | |
| Convertible loan | - | 1 | |
| Foreign exchange contracts | 13.1 | 33 | - |
| Futures contracts | 13.1 | 11 | 9 |
| Other derivative instruments | 0 | - | |
| 7,512 | 7,169 | ||
Loans and receivables at amortised cost |
|||
| Other debt | 631 | 366 | |
| Other bonds | 95 | 95 | |
| 726 | 461 | ||
Derivatives at FVTPL |
|||
| Equity options | (2) | (1) | |
| Swaps | (1) | (1) | |
| Foreign exchange contracts | - | (46) | |
| 726 | 461 | ||
Cash and cash equivalents |
|||
| Cash | 440 | 394 | |
| Treasury bills | 10 | 33 | |
| 12 | 450 | 427 | |
Trade and other receivables |
9 |
31 |
61 |
| Balance due from brokers | 0 | 39 | |
| Other liabilities | 10 | (30) | (18) |
| Total discretionary net assets | 8,686 | 8,091 |
7.3 Irish Portfolio valuation
At 31 December 2017, €2.2bn (2016: €1.4bn) is invested in the Irish Portfolio with the remaining €6.5bn (2016: €6.7bn) invested in the Global Portfolio. The breakdown of the Irish portfolio by investment type is as follows:
| 2017 €m |
2016 €m |
|
|---|---|---|
| Investments at FVTPL | ||
| Private equity investments | 576 | 466 |
| Infrastructure investments | 249 | 130 |
| Quoted equities | 184 | 102 |
| Property fund investments | 106 | 55 |
| Direct private equity | 90 | 48 |
| Unquoted debt instruments | 70 | 44 |
| Convertible preference shares | 46 | 29 |
| Forestry investments | 46 | 41 |
| Quoted debt instruments | 35 | 35 |
| Energy investments | 25 | 26 |
| Convertible loan | - | 1 |
| 1,427 | 977 | |
Loans and receivables at amortised cost |
||
| Other debt | 631 | 366 |
| Other bonds | 95 | 95 |
| 726 | 461 | |
Cash and cash equivalents |
3 |
2 |
| Trade and other receivables | 3 | 1 |
| Total Irish Portfolio valuation | 2,159 | 1,441 |
As at 31 December 2017, a total of €3.3bn (2016: €2.6bn) was committed to the Irish Portfolio.