The table below presents the performance by portfolio at 31 December 2019 and 31 December 2018:
| 31/12/2019 | Performance for 2019 | 31/12/2018 | Performance for 2018 | |
|---|---|---|---|---|
| (in millions of euros) | Stock market or realisable value | Portfolio | Stock market or realisable value | Portfolio |
| Yield assets | Yield assets 31/12/20196,080 | Yield assets Performance for 20198.9% | Yield assets 31/12/20185,356 | Yield assets Performance for 20187.0% |
| Growth assets | Growth assets 31/12/201913,300 | Growth assets Performance for 201925.9% | Growth assets 31/12/201810,108 | Growth assets Performance for 2018-7.0% |
| Fixed income assets | Fixed income assets 31/12/201912,244 | Fixed income assets Performance for 20195.2% | Fixed income assets 31/12/201812,225 | Fixed income assets Performance for 2018-0.4% |
| TOTAL DEDICATED ASSETS | TOTAL DEDICATED ASSETS31/12/201931,624 | TOTAL DEDICATED ASSETSPerformance for 201913.5% | TOTAL DEDICATED ASSETS31/12/201827,689 | TOTAL DEDICATED ASSETSPerformance for 2018-1.6% |
| 31/12/2019 | Performance for 2019 | 31/12/2018 | Performance for 2018 | |
|---|---|---|---|---|
| (in millions of euros) | Stock market or realisable value | Portfolio | Stock market realisable value | Portfolio |
| CTE (the holding company that holds 100% of RTE)(1) | CTE (the holding company that holds 100% of RTE) (1)31/12/20192,926 | CTE (the holding company that holds 100% of RTE) (1)Performance for 201912.6% | CTE (the holding company that holds 100% of RTE) (1)31/12/20182,738 | CTE (the holding company that holds 100% of RTE) (1)Performance for 20187.0% |
| Other unlisted securities(2)(3) | Other unlisted securities (2)(3)31/12/20193,572 | Other unlisted securities (2)(3)Performance for 20196.0% | Other unlisted securities (2)(3)31/12/20182,942 | Other unlisted securities (2)(3)Performance for 20187.9% |
| Equity funds including derivatives(3) | Equity funds including derivatives (3)31/12/201913,024 | Equity funds including derivatives (3)Performance for 201926.3% | Equity funds including derivatives (3)31/12/20189,889 | Equity funds including derivatives (3)Performance for 2018-7.4% |
| Bonds, negotiable debt securities and bond funds(3) | Bonds, negotiable debt securities and bond funds (3)31/12/201911,226 | Bonds, negotiable debt securities and bond funds (3)Performance for 20196.1% | Bonds, negotiable debt securities and bond funds (3)31/12/201810,010 | Bonds, negotiable debt securities and bond funds (3)Performance for 2018-0.8% |
| Monetary funds | Monetary funds 31/12/2019188 | Monetary funds Performance for 2019-0.3% | Monetary funds 31/12/201830 | Monetary funds Performance for 2018-0.3% |
| CSPE after funding | CSPE after funding 31/12/2019688 | CSPE after funding Performance for 20190.6% | CSPE after funding 31/12/20182,080 | CSPE after funding Performance for 20180.4% |
| TOTAL DEDICATED ASSETS | TOTAL DEDICATED ASSETS31/12/201931,624 | TOTAL DEDICATED ASSETSPerformance for 201913.5% | TOTAL DEDICATED ASSETS31/12/201827,689 | TOTAL DEDICATED ASSETSPerformance for 2018-1.6% |
(1) In 2019 and 2018, dedicated assets include 50.1% of Coentreprise de Transport d’Électricité (CTE).
(2) EDF Invest without CTE. The performance of EDF Invest including CTE is 9.0% in 2019 and 7.5% in 2018.
(3) Including derivatives.
After a difficult 2018, the stock markets had a better year in 2019. With the exceptions of May and August, the equities markets registered practically continuous growth that took them to new record levels, helped by the conciliatory tone of the principal central banks.
The Fed and the ECB lowered their base rates, and the ECB also revitalised its asset purchase programme. Growth stabilised and there were hopes of a more positive outlook for corporate results. These decisive moves by the central banks also had a major impact on the bond markets. Contrary to most investors’ expectations, the rates on government bonds in the Euro zone decreased significantly until the end of August before embarking on a gradual increase that gathered pace at the end of the year. It was nonetheless a positive year overall for the bond markets, considering that 10-year German rates moved from +0.25% to -0.19% after hitting a low point at -0.71% in late August. The performance of the riskiest bond assets was even more pronounced: credit spreads retreated substantially, as did the spread on Italian government instruments (-0.9%).
In 2019, the overall after-tax performance of dedicated assets (impacts on reserves and net income) was +€2,758 million, comprising +€16 million for the CSPE (+€24 million before tax), +€308 million for the CTE shares allocated to dedicated assets, and +€2,434 million for other securities (+€3,450 million before tax).
EDF continued to invest the amounts received in repayment of the CSPE receivable, maintaining a prudent allocation, with lower volatility than the benchmark indexes, but an equivalent performance. The overall performance of the dedicated asset portfolio, comprising yield assets, growth assets and fixed-income assets, was +13.5%.
In May 2019, the rest of the minority stake in Nam Theun Power Company (NTPC, a hydroelectric dam in operation in Laos) acquired by EDF Invest in December 2018 was allocated to dedicated assets. In December 2019, EDF SA acquired an investment in US solar power and wind power facilities from EDF Renewables US, and some of that investment was allocated to dedicated assets at 31 December 2019. These new investments were added to EDF Invest’s “Infrastructures” asset class, diversifying its portfolio into renewable energies. EDF Invest also purchased an office building in Germany in early 2019 and a portfolio of hotel buildings in France and Italy in December 2019. The unlisted assets managed by EDF Invest are distributed between yield assets, growth assets and fixed-income assets. The total value of this portfolio, including CTE, was €6.5 billion at 31 December 2019 compared to €5.7 billion at 31 December 2018. The annual performance of EDF Invest’s portfolio including CTE for 2019 was 9%.
Thanks to the rise on the listed equity and bond markets, the growth asset pocket, which exceeded its target 40% proportion all year, produced an overall performance of +25.9%, comprising +26.3% for listed equities and +9.6% for growth funds. Regarding listed equities, the selected Japanese and emerging funds outperformed their respective indexes. In the North American pocket where asset funds generally had lower performances, continued passive management for more than 85% of assets kept the performance close to the index, despite the presence of low-volatility funds. The European pocket’s performance also declined slightly, although at the end of the year the chosen funds began to catch up with their benchmark index. Finally, currency management had positive results, particularly due to the above-target concentration on the pound sterling.
The performance of fixed-income assets was satisfactory in both absolute (+5.2%) and relative terms. The listed bond portfolio achieved growth of +6.1%, just below its benchmark index. The high proportion of credit assets, which began to be built up at the start of the year and was subsequently accentuated, combined with a good performance by the management systems, made up for the interest rate effect. Meanwhile, bond funds registered a performance of +9.7% and the performance by the portfolio of short-term receivables, which primarily consists of the CSPE receivable, was +0.4%.
