Citibank 2011 Annual Report Download - page 215

193
Investments in Alternative Investment Funds that
Calculate Net Asset Value per Share
The Company holds investments in certain alternative investment funds
that calculate net asset value (NAV) per share, including hedge funds,
private equity funds, funds of funds and real estate funds. The Company’s
investments include co-investments in funds that are managed by the
Company and investments in funds that are managed by third parties.
Investments in funds are generally classified as non-marketable equity
securities carried at fair value.
The fair values of these investments are estimated using the NAV per share
of the Company’s ownership interest in the funds, where it is not probable
that the Company will sell an investment at a price other than NAV.
In millions of dollars at December 31, 2011
Fair
value Unfunded commitments
Redemption frequency
(if currently eligible)
monthly, quarterly, annually Redemption notice period
(EDGEæFUNDS $ 898 $ — 10–95 days
0RIVATEæEQUITYæFUNDSæ 958 441 — —
2EALæESTATEæFUNDSæ 319 198 — —
Total $ 2,175 (5) $639 — —
æ )NCLUDESæINVESTMENTSæINæPRIVATEæEQUITYæFUNDSæCARRIEDæATæCOSTæWITHæAæCARRYINGæVALUEæOFææMILLION
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ESTIMATEDæTHATæTHEæUNDERLYINGæASSETSæOFæTHESEæFUNDSæWILLæBEæLIQUIDATEDæOVERæAæPERIODæOFæSEVERALæYEARSæASæMARKETæCONDITIONSæALLOWæ7HILEæCERTAINæINVESTMENTSæWITHINæTHEæPORTFOLIOæMAYæBEæSOLDæNOæSPECIFICæASSETSæHAVEæ
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Under The Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010 (Dodd-Frank Act), the Company will be required to limit its
investments in and arrangements with “private equity funds” and “hedge
funds” as defined under the statute and impending regulations. Citi does not
believe the implementation of the fund provisions of the Dodd-Frank Act will
have a material negative impact on its overall results of operations.