ING Direct 2013 Annual Report Download - page 124

Designated as at fair value through profit and loss
Designated as at fair value through profit and loss by type
2013 2012
Equity securities 437 13
Debt securities 1,289 2,682
Loans and receivables 1,052 1,169
Other 12 896
2,790 4,760
Included in the Financial assets designated as at fair value through profit and loss is a portfolio of loans and receivables which is
economically hedged by credit derivatives. The hedges do not meet the criteria for hedge accounting and the loans are recorded at fair
value to avoid an accounting mismatch. The maximum credit exposure of the loans and receivables included in Financial assets designated
as at fair value through profit and loss approximates its carrying value. The cumulative change in fair value of the loans attributable to
changes in credit risk is not significant.
The notional value of the related credit derivatives is EUR 111 million (2012: EUR 61 million). The change in fair value of the credit
derivatives attributable to changes in credit risk since the loans were first designated amounts was EUR –4 million (2012: EUR –6 million)
and the change for the current year was EUR 2 million (2012: EUR –3 million).
The changes in fair value of the (designated) loans attributable to changes in credit risk have been calculated by determining the changes
in credit spread implicit in the fair value of bonds issued by entities with similar credit characteristics.
Other includes investments in private equity funds, hedge funds, other non-traditional investment vehicles and limited partnerships.
5 INVESTMENTS
Investments by type
2013 2012
Available-for-sale
– equity securities 7,265 7,707
– debt securities 130,632 185,877
137,897 193,584
Held-to-maturity
– debt securities 3,098 6,545
3,098 6,545
140,995 200,129
Equity securities in 2013 include EUR 1,832 million shares in ING managed investment funds and EUR 1,759 million shares in third party
managed investment funds.
Exposure to debt securities
ING Group’s exposure to debt securities is included in the following balance sheet lines:
Debt securities
2013 2012
Available-for-sale investments 130,632 185,877
Held-to-maturity investments 3,098 6,545
Loans and advances to customers 21,914 26,945
Amounts due from banks 3,059 3,386
Available-for-sale investments and Assets at
amortised cost 158,703 222,753
Trading assets 18,890 17, 472
Investments for risk of policyholders 1,821 6,940
Designated as at fair value through profit and loss 1,289 2,682
Financial assets at fair value through profit and loss 22,000 27,094
180,703 249,847
Notes to the consolidated annual accounts of ING Group continued
122 ING Group Annual Report 2013