For additional information regarding Citi’s investment portfolios, including evaluating investments for impairment, see Note 13 to the Consolidated Financial Statements

in Citi’s 2019 Annual Report on Form 10-K.

The following table presents Citi’s investments by category:


In millions of dollars	June 30, 2020		December 31, 2019

Debt securities available-for-sale (AFS)	$	342,256	$	280,265
Debt securities held-to-maturity (HTM)⁽¹⁾	83,332		80,775
Marketable equity securities carried at fair value⁽²⁾	593		458
Non-marketable equity securities carried at fair value⁽²⁾	486		704
Non-marketable equity securities measured using the measurement alternative⁽³⁾	771		700
Non-marketable equity securities carried at cost⁽⁴⁾	5,815		5,661
Total investments	$	433,253	$	368,563

(1)Carried at adjusted amortized cost basis, net of any allowance for credit losses.

(2)Unrealized gains and losses are recognized in earnings.

(3)Impairment losses and adjustments to the carrying value as a result of observable price changes are recognized in earnings. See ”Recognition and Measurement of Impairment” below.

(4) Represents shares issued by the Federal Reserve Bank, Federal Home Loan Banks and certain exchanges of which Citigroup is a member.

The following table presents interest and dividend income on investments:


	Three Months Ended June 30,						Six Months Ended June 30,
In millions of dollars	2020		2019		2020		2019
Taxable interest	$	1,984	$	2,324	$	4,163	$	4,696
Interest exempt from U.S. federal income tax	70		126		146		253
Dividend income	43		55		69		104
Total interest and dividend income	$	2,097	$	2,505	$	4,378	$	5,053

The following table presents realized gains and losses on the sales of investments, which exclude impairment losses:


	Three Months Ended June 30,						Six Months Ended June 30,
In millions of dollars	2020		2019		2020		2019
Gross realized investment gains	$	785	$	474	$	1,250	$	642
Gross realized investment losses	(37)		(6)		(70)		(44)
Net realized gains on sale of investments	$	748	$	468	$	1,180	$	598

Debt Securities Available-for-Sale

The amortized cost and fair value of AFS debt securities were as follows:


	June 30, 2020																		December 31, 2019
In millions of dollars	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Debt securities AFS
Mortgage-backed securities⁽¹⁾
U.S. government-sponsored agency guaranteed	$	44,198	$	1,359	$	205	$	—	$	45,352	$	34,963	$	547	$	280	$	35,230



Non-U.S. residential	691		4		—		—		695		789		3		—		792
Commercial	65		—		—		—		65		75		—		—		75
Total mortgage-backed securities	$	44,954	$	1,363	$	205	$	—	$	46,112	$	35,827	$	550	$	280	$	36,097
U.S. Treasury and federal agency securities
U.S. Treasury	$	148,181	$	2,779	$	2	$	—	$	150,958	$	106,429	$	50	$	380	$	106,099
Agency obligations	3,072		27		—		—		3,099		5,336		3		20		5,319
Total U.S. Treasury and federal agency securities	$	151,253	$	2,806	$	2	$	—	$	154,057	$	111,765	$	53	$	400	$	111,418
State and municipal	$	5,139	$	13	$	131	$	—	$	5,021	$	5,024	$	43	$	89	$	4,978
Foreign government	119,405		1,720		182		3		120,940		110,958		586		241		111,303
Corporate	11,178		178		132		5		11,219		11,266		52		101		11,217
Asset-backed securities⁽¹⁾	287		7		7		—		287		524		—		2		522
Other debt securities	4,614		6		—		—		4,620		4,729		1		—		4,730

Total debt securities AFS	$	336,830	$	6,093	$	659	$	8	$	342,256	$	280,093	$	1,285	$	1,113	$	280,265

(1)The Company invests in mortgage- and asset-backed securities. These securitizations are generally considered VIEs. The Company’s maximum exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. For mortgage- and asset-backed securitizations in which the Company has other involvement, see Note 18 to the Consolidated Financial Statements.

The following table shows the fair value of AFS debt securities that have been in an unrealized loss position:


	Less than 12 months						12 months or longer						Total
In millions of dollars	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
June 30, 2020
Debt securities AFS
Mortgage-backed securities
U.S. government-sponsored agency guaranteed	$	8,915	$	183	$	551	$	22	$	9,466	$	205

Non-U.S. residential	129		—		—		—		129		—
Commercial	12		—		5		—		17		—
Total mortgage-backed securities	$	9,056	$	183	$	556	$	22	$	9,612	$	205
U.S. Treasury and federal agency securities
U.S. Treasury	$	27,202	$	2	$	—	$	—	$	27,202	$	2
Agency obligations	—		—		250		—		250		—
Total U.S. Treasury and federal agency securities	$	27,202	$	2	$	250	$	—	$	27,452	$	2
State and municipal	$	4,607	$	109	$	234	$	22	$	4,841	$	131
Foreign government	22,236		121		2,519		61		24,755		182
Corporate	1,599		129		27		3		1,626		132
Asset-backed securities	239		7		1		—		240		7
Other debt securities	341		—		—		—		341		—
Total debt securities AFS	$	65,280	$	551	$	3,587	$	108	$	68,867	$	659
December 31, 2019
Debt securities AFS
Mortgage-backed securities
U.S. government-sponsored agency guaranteed	$	9,780	$	242	$	1,877	$	38	$	11,657	$	280

Non-U.S. residential	208		—		1		—		209		—
Commercial	16		—		27		—		43		—
Total mortgage-backed securities	$	10,004	$	242	$	1,905	$	38	$	11,909	$	280
U.S. Treasury and federal agency securities
U.S. Treasury	$	45,484	$	248	$	26,907	$	132	$	72,391	$	380
Agency obligations	781		2		3,897		18		4,678		20
Total U.S. Treasury and federal agency securities	$	46,265	$	250	$	30,804	$	150	$	77,069	$	400
State and municipal	$	362	$	62	$	266	$	27	$	628	$	89
Foreign government	35,485		149		8,170		92		43,655		241
Corporate	2,916		98		123		3		3,039		101
Asset-backed securities	112		1		166		1		278		2
Other debt securities	1,307		—		—		—		1,307		—
Total debt securities AFS	$	96,451	$	802	$	41,434	$	311	$	137,885	$	1,113

The following table presents the amortized cost and fair value of AFS debt securities by contractual maturity dates:



	June 30, 2020						December 31, 2019
In millions of dollars	Amortized cost		Fair value		Amortized cost		Fair value
Mortgage-backed securities⁽¹⁾
Due within 1 year	$	290	$	290	$	20	$	20
After 1 but within 5 years	609		613		573		574
After 5 but within 10 years	1,010		1,086		594		626
After 10 years⁽²⁾	43,045		44,123		34,640		34,877
Total	$	44,954	$	46,112	$	35,827	$	36,097
U.S. Treasury and federal agency securities
Due within 1 year	$	45,246	$	45,397	$	40,757	$	40,688
After 1 but within 5 years	103,836		106,417		70,128		69,850
After 5 but within 10 years	1,899		1,964		854		851
After 10 years⁽²⁾	272		279		26		29
Total	$	151,253	$	154,057	$	111,765	$	111,418
State and municipal
Due within 1 year	$	391	$	392	$	932	$	932
After 1 but within 5 years	559		570		714		723
After 5 but within 10 years	303		329		195		215
After 10 years⁽²⁾	3,886		3,730		3,183		3,108
Total	$	5,139	$	5,021	$	5,024	$	4,978
Foreign government
Due within 1 year	$	46,614	$	46,815	$	42,611	$	42,666
After 1 but within 5 years	65,217		66,383		58,820		59,071
After 5 but within 10 years	5,567		5,702		8,192		8,198
After 10 years⁽²⁾	2,007		2,040		1,335		1,368
Total	$	119,405	$	120,940	$	110,958	$	111,303
All other⁽³⁾
Due within 1 year	$	6,161	$	6,187	$	7,306	$	7,311
After 1 but within 5 years	8,769		8,841		8,279		8,275
After 5 but within 10 years	1,005		995		818		797
After 10 years⁽²⁾	144		103		116		86
Total	$	16,079	$	16,126	$	16,519	$	16,469
Total debt securities AFS	$	336,830	$	342,256	$	280,093	$	280,265

(1)Includes mortgage-backed securities of U.S. government-sponsored agencies.

(2)Investments with no stated maturities are included as contractual maturities of greater than 10 years. Actual maturities may differ due to call or prepayment rights.

(3)Includes corporate, asset-backed and other debt securities.

There were no purchased credit-deteriorated AFS debt securities held by the Company as of June 30, 2020.

Debt Securities Held-to-Maturity

The carrying value and fair value of debt securities HTM were as follows:


In millions of dollars	Amortized cost, net⁽¹⁾		Gross unrealized gains		Gross unrealized losses		Fair value
June 30, 2020
Debt securities HTM
Mortgage-backed securities⁽²⁾
U.S. government-sponsored agency guaranteed	$	49,649	$	2,442	$	6	$	52,085

Non-U.S. residential	1,083		—		6		1,077
Commercial	673		1		1		673
Total mortgage-backed securities	$	51,405	$	2,443	$	13	$	53,835
State and municipal	$	9,152	$	650	$	16	$	9,786
Foreign government	1,237		78		—		1,315
Asset-backed securities⁽²⁾	21,538		5		471		21,072

Total debt securities HTM, net	$	83,332	$	3,176	$	500	$	86,008
December 31, 2019
Debt securities HTM
Mortgage-backed securities⁽²⁾
U.S. government-sponsored agency guaranteed	$	46,637	$	1,047	$	21	$	47,663



Non-U.S. residential	1,039		5		—		1,044
Commercial	582		1		—		583
Total mortgage-backed securities	$	48,258	$	1,053	$	21	$	49,290
State and municipal	$	9,104	$	455	$	28	$	9,531
Foreign government	1,934		37		1		1,970
Asset-backed securities⁽²⁾	21,479		12		59		21,432
Total debt securities HTM	$	80,775	$	1,557	$	109	$	82,223

(1)Amortized cost is reported net of allowance for credit losses of $107 million at June 30, 2020. There was no allowance as of December 31, 2019.

(2)The Company invests in mortgage- and asset-backed securities. These securitizations are generally considered VIEs. The Company’s maximum exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. For mortgage- and asset-backed securitizations in which the Company has other involvement, see Note 18 to the Consolidated Financial Statements.

The table below shows the fair value of debt securities HTM that have been in an unrecognized loss position at December 31, 2019:


	Less than 12 months						12 months or longer						Total
In millions of dollars	Fair value		Gross unrecognized losses		Fair value		Gross unrecognized losses		Fair value		Gross unrecognized losses
December 31, 2019
Debt securities held-to-maturity
Mortgage-backed securities	$	3,590	$	10	$	1,116	$	11	$	4,706	$	21
State and municipal	34		1		1,125		27		1,159		28
Foreign government	1,970		1		—		—		1,970		1
Asset-backed securities	7,972		11		765		48		8,737		59
Total debt securities held-to-maturity	$	13,566	$	23	$	3,006	$	86	$	16,572	$	109

Note: Excluded from the gross unrecognized losses presented in the table above is $(582) million of net unrealized losses recorded in AOCI as of December 31, 2019, respectively, primarily related to the difference between the amortized cost and carrying value of HTM debt securities that were reclassified from AFS. Substantially all of these net unrecognized losses relate to securities that have been in a loss position for 12 months or longer at December 31, 2019.

The following table presents the carrying value and fair value of HTM debt securities by contractual maturity dates:



	June 30, 2020						December 31, 2019
In millions of dollars	Amortized cost⁽¹⁾		Fair value		Amortized cost		Fair value
Mortgage-backed securities
Due within 1 year	$	75	$	76	$	17	$	17
After 1 but within 5 years	432		449		458		463
After 5 but within 10 years	1,585		1,748		1,662		1,729
After 10 years⁽²⁾	49,313		51,562		46,121		47,081
Total	$	51,405	$	53,835	$	48,258	$	49,290
State and municipal
Due within 1 year	$	7	$	7	$	2	$	26
After 1 but within 5 years	81		84		123		160
After 5 but within 10 years	632		666		597		590
After 10 years⁽²⁾	8,432		9,029		8,382		8,755
Total	$	9,152	$	9,786	$	9,104	$	9,531
Foreign government
Due within 1 year	$	273	$	272	$	650	$	652
After 1 but within 5 years	964		1,043		1,284		1,318
After 5 but within 10 years	—		—		—		—
After 10 years⁽²⁾	—		—		—		—
Total	$	1,237	$	1,315	$	1,934	$	1,970
All other⁽³⁾
Due within 1 year	$	—			$	—	$	—
After 1 but within 5 years	—				—		—
After 5 but within 10 years	7,262		7,123		8,545		8,543
After 10 years⁽²⁾	14,276		13,949		12,934		12,889
Total	$	21,538	$	21,072	$	21,479	$	21,432
Total debt securities HTM	$	83,332	$	86,008	$	80,775	$	82,223

(1)Amortized cost is reported net of allowance for credit losses of $107 million at June 30, 2020.

(2)Investments with no stated maturities are included as contractual maturities of greater than 10 years. Actual maturities may differ due to call or prepayment rights.

(3)Includes corporate and asset-backed securities.

HTM Debt Securities Delinquency and Non-Accrual Details

Citi did not have any HTM securities that were delinquent or on non-accrual status at June 30, 2020.

There were no purchased credit-deteriorated HTM debt securities held by the Company as of June 30, 2020.

Evaluating Investments for Impairment

AFS Debt Securities

Overview—AFS Debt Securities

The Company conducts periodic reviews of all AFS debt securities with unrealized losses to evaluate whether the impairment resulted from expected credit losses or from other factors and to evaluate the Company’s intent to sell such securities.

An AFS debt security is impaired when the current fair value of an individual AFS debt security is less than its amortized cost basis.

The Company recognizes the entire difference between amortized cost basis and fair value in earnings for impaired AFS debt securities that Citi has an intent to sell or for which Citi believes it will more-likely-than-not be required to sell prior to recovery of the amortized cost basis. However, for those AFS debt securities that the Company does not intend to sell and is not likely to be required to sell, only the credit-related impairment is recognized in earnings by recording an allowance for credit losses. Any remaining fair value decline for such securities is recorded in AOCI. The Company does not consider the length of time that the fair value of a security is below its amortized cost when determining if a credit loss exists.

For AFS debt securities, credit losses exist where Citi does not expect to receive contractual principal and interest cash flows sufficient to recover the entire amortized cost basis of a security. The allowance for credit losses is limited to the

amount by which the AFS debt security’s amortized cost basis exceeds its fair value. The allowance is increased or decreased if credit conditions subsequently worsen or improve. Reversals of credit losses are recognized in earnings.

The Company’s review for impairment of AFS debt securities generally entails:

•identification and evaluation of impaired investments;

•consideration of evidential matter, including an evaluation of factors or triggers that could cause individual positions to qualify as credit impaired and those that would not support credit impairment; and

•documentation of the results of these analyses, as required under business policies.

The sections below describe the Company’s process for identifying expected credit impairments for debt security types that have the most significant unrealized losses as of June 30, 2020.

Mortgage-Backed Securities

Citi records no allowances for credit losses on U.S. government-agency-guaranteed mortgage-backed securities, because the Company expects to incur no credit losses in the event of default due to a history of incurring no credit losses and due to the nature of the counterparties.

State and Municipal Securities

The process for estimating credit losses in Citigroup’s AFS state and municipal bonds is primarily based on a credit analysis that incorporates third-party credit ratings. Citi monitors the bond issuers and any insurers providing default protection in the form of financial guarantee insurance. The average external credit rating, ignoring any insurance, is Aa2/AA. In the event of an external rating downgrade or other indicator of credit impairment (i.e., based on instrument-specific estimates of cash flows or probability of issuer default), the subject bond is specifically reviewed for adverse changes in the amount or timing of expected contractual principal and interest payments.

For AFS state and municipal bonds with unrealized losses that Citi plans to sell, or would more-likely-than-not be required to sell, the full impairment is recognized in earnings. For AFS state and municipal bonds where Citi has no intent to sell and it is more-likely-than-not that the Company will not be required to sell, Citi records an allowance for expected credit losses for the amount it expects not to collect, capped at the difference between the bond’s amortized cost basis and fair value.

Equity Method Investments

Management assesses equity method investments that have fair values that are less than their respective carrying values for other-than-temporary impairment (OTTI). Fair value is measured as price multiplied by quantity if the investee has publicly listed securities. If the investee is not publicly listed, other methods are used (see Note 20 to the Consolidated Financial Statements).

For impaired equity method investments that Citi plans to sell prior to recovery of value or would more-likely-than-not be required to sell, with no expectation that the fair value will recover prior to the expected sale date, the full impairment is recognized in earnings as OTTI regardless of severity and duration. The measurement of the OTTI does not include partial projected recoveries subsequent to the balance sheet date.

For impaired equity method investments that management does not plan to sell and is not more-likely-than-not to be required to sell prior to recovery of value, the evaluation of whether an impairment is other-than-temporary is based on (i) whether and when an equity method investment will recover in value and (ii) whether the investor has the intent and ability to hold that investment for a period of time sufficient to recover the value. The determination of whether the impairment is considered other-than-temporary considers the following indicators:

•the cause of the impairment and the financial condition and near-term prospects of the issuer, including any specific events that may influence the operations of the issuer;

•the intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value; and

•the length of time and extent to which fair value has been less than the carrying value.

Recognition and Measurement of Impairment

The following tables present total impairment on Investments recognized in earnings:


	Three Months Ended June 30, 2020										Three Months Ended June 30, 2019
In millions of dollars	AFS		Other assets		Total		AFS		HTM		Other assets		Total
Impairment losses related to debt securities that the Company does not intend to sell nor will likely be required to sell:
Total impairment losses recognized during the period	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Less: portion of impairment loss recognized in AOCI (before taxes)	—		—		—		—		—		—		—
Net impairment losses recognized in earnings for debt securities that the Company does not intend to sell nor will likely be required to sell	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Impairment losses recognized in earnings for debt securities that the Company intends to sell, would more-likely-than-not be required to sell or will be subject to an issuer call deemed probable of exercise	19		—		19		2		—		—		2
Total impairment losses recognized in earnings	$	19	$	—	$	19	$	2	$	—	$	—	$	2

	Six Months Ended June 30, 2020										Six Months Ended June 30, 2019
In millions of dollars	AFS		Other assets		Total		AFS		HTM		Other assets		Total
Impairment losses related to debt securities that the Company does not intend to sell nor will likely be required to sell:
Total impairment losses recognized during the period	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Less: portion of impairment loss recognized in AOCI (before taxes)	—		—		—		—		—		—		—
Net impairment losses recognized in earnings for debt securities that the Company does not intend to sell nor will likely be required to sell	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Impairment losses recognized in earnings for debt securities that the Company intends to sell, would more-likely-than-not be required to sell or will be subject to an issuer call deemed probable of exercise	71		—		71		5		—		—		5
Total impairment losses recognized in earnings	$	71	$	—	$	71	$	5	$	—	$	—	$	5

The following are the three- and six-month rollforwards of the credit-related impairments recognized in earnings for AFS debt securities held that the Company does not intend to sell nor will likely be required to sell at June 30, 2019:


	Cumulative OTTI credit losses recognized in earnings on debt securities still held
Three Months Ended June 30, 2019
In millions of dollars	March 31, 2019 balance		Credit impairments recognized in earnings on securities not previously impaired		Credit impairments recognized in earnings on securities that have been previously impaired		Changes due to credit-impaired securities sold, transferred or matured		June 30, 2019 balance
AFS debt securities
Mortgage-backed securities⁽¹⁾	$	1	$	—	$	—	$	—	$	1
State and municipal	—		—		—		—		—
Foreign government securities	—		—		—		—		—
Corporate	4		—		—		—		4
All other debt securities	—		—		—		—		—
Total OTTI credit losses recognized for AFS debt securities	$	5	$	—	$	—	$	—	$	5
HTM debt securities
Mortgage-backed securities	$	—	$	—	$	—	$	—	$	—
State and municipal	—		—		—		—		—
Total OTTI credit losses recognized for HTM debt securities	$	—	$	—	$	—	$	—	$	—

Six Months Ended June 30, 2019
In millions of dollars	December 31, 2018 balance		Credit impairments recognized in earnings on securities not previously impaired		Credit impairments recognized in earnings on securities that have been previously impaired		Changes due to credit-impaired securities sold, transferred or matured		June 30, 2019 balance
AFS debt securities
Mortgage-backed securities⁽¹⁾	$	1	$	—	$	—	$	—	$	1
State and municipal	—		—		—		—		—
Foreign government securities	—		—		—		—		—
Corporate	4		—		—		—		4
All other debt securities	—		—		—		—		—
Total OTTI credit losses recognized for AFS debt securities	$	5	$	—	$	—	$	—	$	5
HTM debt securities
Mortgage-backed securities	$	—	$	—	$	—	$	—	$	—
State and municipal	—		—		—		—		—
Total OTTI credit losses recognized for HTM debt securities	$	—	$	—	$	—	$	—	$	—

(1) Primarily consists of Prime securities.

Non-Marketable Equity Securities Not Carried at Fair Value

Non-marketable equity securities are required to be measured at fair value with changes in fair value recognized in earnings unless (i) the measurement alternative is elected or (ii) the investment represents Federal Reserve Bank and Federal Home Loan Bank stock or certain exchange seats that continue to be carried at cost.

The election to measure a non-marketable equity security using the measurement alternative is made on an instrument-by-instrument basis. Under the measurement alternative, an equity security is carried at cost plus or minus changes resulting from observable prices in orderly transactions for the identical or a similar investment of the same issuer. The carrying value of the equity security is adjusted to fair value on the date of an observed transaction. Fair value may differ from the observed transaction price due to a number of factors, including marketability adjustments and differences in rights and obligations when the observed transaction is not for the identical investment held by Citi.

Equity securities under the measurement alternative are also assessed for impairment. On a quarterly basis, management qualitatively assesses whether each equity security under the measurement alternative is impaired. Impairment indicators that are considered include, but are not limited to, the following:

•a significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee;

•a significant adverse change in the regulatory, economic or technological environment of the investee;

•a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates;

•a bona fide offer to purchase, an offer by the investee to sell or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; and

•factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies or noncompliance with statutory capital requirements or debt covenants.

When the qualitative assessment indicates that impairment exists, the investment is written down to fair value, with the full difference between the fair value of the investment and its carrying amount recognized in earnings.

Below is the carrying value of non-marketable equity securities measured using the measurement alternative at June 30, 2020 and December 31, 2019:


In millions of dollars	June 30, 2020		December 31, 2019
Measurement alternative:
Carrying value	$	771	$	700

Below are amounts recognized in earnings and life-to-date amounts for non-marketable equity securities measured using the measurement alternative:


	Three Months Ended June 30,						Six Months Ended June 30,
In millions of dollars	2020		2019		2020		2019
Measurement alternative⁽¹⁾:
Impairment losses	$	50	$	3	$	53	$	8
Downward changes for observable prices	19		12		19		12
Upward changes for observable prices	17		19		42		85

(1) See Note 20 to the Consolidated Financial Statements for additional information on these nonrecurring fair value measurements.


	Life-to-date amounts on securities still held
In millions of dollars	June 30, 2020
Measurement alternative:
Impairment losses	$	65
Downward changes for observable prices	52
Upward changes for observable prices	384

A similar impairment analysis is performed for non-marketable equity securities carried at cost. For the three months ended June 30, 2020 and 2019, there was no impairment loss recognized in earnings for non-marketable equity securities carried at cost.

Investments in Alternative Investment Funds That Calculate Net Asset Value

The Company holds investments in certain alternative investment funds that calculate net asset value (NAV), or its equivalent, including private equity funds, funds of funds and real estate funds, as provided by third-party asset managers. Investments in such funds are generally classified as non-marketable equity securities carried at fair value. The fair values of these investments are estimated using the NAV of the Company’s ownership interest in the funds. Some of these investments are in “covered funds” for purposes of the Volcker Rule, which prohibits certain proprietary investment activities and limits the ownership of, and relationships with, covered funds. On April 21, 2017, Citi’s request for extension of the permitted holding period under the Volcker Rule for certain of its investments in illiquid funds was approved, allowing the Company to hold such investments until the earlier of five years from the July 21, 2017 expiration date of the general conformance period or the date such investments mature or are otherwise conformed with the Volcker Rule.


	Fair value						Unfunded commitments				Redemption frequency (if currently eligible) monthly, quarterly, annually	Redemption notice period
In millions of dollars	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019
Hedge funds	$	—	$	—	$	—	$	—	Generally quarterly	10–95 days
Private equity funds⁽¹⁾⁽²⁾	111		134		62		62		—	—
Real estate funds⁽²⁾⁽³⁾	9		10		19		18		—	—
Mutual/collective investment funds	20		26		—		—		—	—
Total	$	140	$	170	$	81	$	80	—	—

(1)Private equity funds include funds that invest in infrastructure, emerging markets and venture capital.

(2)With respect to the Company’s investments in private equity funds and real estate funds, distributions from each fund will be received as the underlying assets held by these funds are liquidated. It is estimated that the underlying assets of these funds will be liquidated over a period of several years as market conditions allow. Private equity and real estate funds do not allow redemption of investments by their investors. Investors are permitted to sell or transfer their investments, subject to the approval of the general partner or investment manager of these funds, which generally may not be unreasonably withheld.

(3)Includes several real estate funds that invest primarily in commercial real estate in the U.S., Europe and Asia.