Interest income Petroleum Fund Annual Report 2015

Notes to the financial statements for the year ended 31 December 2015 38

9. Financial assets valued through profit or loss continued

A summary of securities is as follows: As at 31122015 USD As at 31122014 USD Designated as at fair value through profit or loss Fair Value of net assets Fair Value of net assets Fixed interest securities United States treasury bill 19,962,597 - - - European treasury bill - - 11,190,953 - United States treasury notes 8,049,248,771 50 8,311,880,935 50 Australian government bonds 177,167,232 1 163,501,748 1 Japanese government bonds 154,358,289 1 147,261,709 1 United Kingdom government bonds 155,324,504 1 193,285,097 1 European government bonds 487,196,026 3 443,574,441 3 Other government bonds 608,651,281 4 616,124,795 4 Total fixed interest securities 9,651,908,700 60 9,886,819,678 60 Equity securities United States equities 3,784,991,393 23 3,856,201,783 23 Australian equities 162,983,537 1 176,209,987 1 Japanese equities 579,451,558 4 531,978,919 3 United Kingdom equities 485,484,977 3 532,166,374 3 European equities 734,478,624 5 740,570,166 5 Equities from other countries 676,772,309 4 742,812,061 5 Total equity securities 6,424,162,398 40 6,579,939,290 40 Held for trading Derivatives Foreign currency forwards 231,356 - 293,358 - Equity options - - 18,075 - 231,356 - 275,283 - Total securities 16,076,302,454 16,466,483,685 In the table above, European equities represents all equities denoted in Euros. The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.  Level 1 fair value measurements are those derived from quoted prices unadjusted in active markets for identical assets or liabilities. The Petroleum Fund does not adjust the quoted prices for these instruments.  Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly i.e. as prices or indirectly i.e. derived from prices. As level 2 investments include positions that are not traded in active markets andor subject to transfer restrictions, valuations may be adjusted to reflect illiquidity andor non-transferability which are generally based on available market information.  Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data unobservable inputs. As at 31122015 USD Financial assets Level 1 Level 2 Level 3 Total Financial Instruments designated at fair value through profit or loss Derivatives - 231,356 - 231,356 Equity securities 6,424,162,398 - - 6,424,162,398 Fixed interest securities 9,651,908,700 - - 9,651,908,700 Total 16,076,071,098 231,356 - 16,076,302,454