On 22 December 2016, EDF assigned a 26.4% portion of this financial receivable, including the additional receivable corresponding to the shortfalls in compensation between 2013 and 2015, to a pool of investors.
Consequently, the realisable value of the non-assigned portion of the receivable, which is totally allocated to dedicated assets, is calculated based on the assignment value at that date.
The amount received for assignment of the portion of the CSPE receivable that was allocated to dedicated assets (€894 million) was reinvested in dedicated assets, in the same way as the reimbursements received (see note 3.5).
After receiving the ministerial letter of 31 May 2018 authorising EDF, subject to conditions, to increase the portion of unlisted assets in its dedicated assets, on 29 June 2018 the Board of Directors validated the following new strategic allocation for dedicated assets:
These targets should be reached gradually, mainly by reinvesting fixed-income assets in yield assets.
Certain growth and fixed-income assets take the form of bonds held directly by EDF. Others consist of specialised collective investment funds on leading international markets, managed by independent asset management companies. They take the form of open-end funds and “reserved” funds established for the Group (which does not participate in the fund management).
The listed equity funds consist of international equities (mainly in North America but also in Europe, Asia-Pacific and emerging countries). Listed bonds and listed bond funds consist of sovereign and corporate bonds.
These investments are structured and managed in line with the strategic allocation, which takes into consideration international stock market cycles, for which the statistical inversion generally observed between equity market cycles and bond market cycles – as well as between geographical areas – has led the Group to define a long-term investment policy with appropriate allocation between growth assets and fixed-income assets.
Under the new strategic allocation, growth assets also include a small portion of funds invested in unlisted equities, and fixed-income assets also include a small portion of funds invested in unlisted debt. These funds are managed by EDF Invest (see note 38.2.2).
In the course of operational asset monitoring, EDF applies long-term, specific management rules defined and supervised by its governance bodies (maximum investment ratios, volatility analyses and assessment of individual fund manager quality).
The yield assets managed by EDF Invest consist of assets related to investments in infrastructures and real estate.
Through investment funds, EDF Invest also manages growth assets and fixed-income assets (see note 38.2.1).
At 31 December 2019, the assets managed by EDF Invest represent a total realisable value of €6,498 million, including €6,080 million of yield assets. Yield assets particularly include:
Dedicated assets are classified in the balance sheet according to their accounting nature: investments, investment securities, and marketable securities. They are valued under the accounting principles presented in note 1.
Details of the portfolio at 31 December 2019 are as follows:
| 31/12/2019 | 31/12/2018 | |||
|---|---|---|---|---|
| (in millions of euros) | Net book value | Realisable Value | Net book value | Realisable Value |
| Investment in CTE (the company that owns RTE)(1) | Investment in CTE (the company that owns RTE) (1)31/12/20192,705 | Investment in CTE (the company that owns RTE) (1)31/12/20182,926 | 2,705 | 2,738 |
| Other investment securities(2) | Other investment securities (2)31/12/201922,246 | Other investment securities (2)31/12/201824,816 | 20,136 | 20,830 |
| Other financial investments | Other financial investments 31/12/20192,623 | Other financial investments 31/12/20182,965 | 2,156 | 2,385 |
| Dedicated assets – Investments | Dedicated assets – Investments31/12/201927,574 | Dedicated assets – Investments31/12/201830,707 | 24,997 | 25,953 |
| Marketable securities | Marketable securities 31/12/2019192 | Marketable securities 31/12/2018192 | ||
| Dedicated assets – Marketable securities | Dedicated assets – Marketable securities31/12/2019192 | Dedicated assets – Marketable securities31/12/2018192 | ||
| CSPE receivable(3) | CSPE receivable (3)31/12/2019684 | CSPE receivable (3)31/12/2018688 | 2,060 | 2,080 |
| Total dedicated assets before hedging | Total dedicated assets before hedging31/12/201928,450 | Total dedicated assets before hedging31/12/201831,587 | 27,057 | 28,033 |
| Hedging instruments and other(2) | Hedging instruments and other (2)31/12/2019(5) | Hedging instruments and other (2)31/12/201837 | (369) | (344) |
| TOTAL DEDICATED ASSETS AFTER HEDGING(4) | TOTAL DEDICATED ASSETS AFTER HEDGING(4)31/12/201928,445 | TOTAL DEDICATED ASSETS AFTER HEDGING(4)31/12/201831,624 | 26,688 | 27,689 |
(1) EDF’s investment of 50.1% of CTE, the company that holds 100% of the shares in RTE. The realisable value of CTE at 31 December 2019 in the above table has been determined by an independent assessor, in the same way as for EDF Invest’s other assets.
(2) Including €391 million of securities acquired in late December 2018 for which payment was made in early January 2019.
(3) The receivable consisting of accumulated shortfalls in compensation at 31 December 2015, less the portion assigned on 22 December 2016 and reimbursements received since then, in line with the repayment schedule. The realisable value of the CSPE receivable is estimated based on market rates.
(4) Limiting the value of certain investments in compliance with Article 16 of Decree 2007-243 concerning calculation of the regulatory realisable value of dedicated assets has no effect at 31 December 2018 or 2019.
Net book value and fair value include unmatured accrued interest.
