44 Assets and liabilities of operations classified as held for sale.

The Group provides seed capital to newly established funds which may result in such funds becoming newly acquired subsidiaries of the Group. Where the Group is actively seeking to reduce its investment in a subsidiary and it is considered highly probable that the Group will relinquish control of the subsidiary within 12 months of classification, the subsidiary is classified as held for sale.

During the year, two funds (2011: nil) were seeded in this manner and met the above classification. Consequently the assets and liabilities of these funds have been classified as held for sale. The assets of these subsidiaries primarily comprise financial investments and the liabilities comprise third party interest in the consolidated funds.

The financial investments of £891m comprise £780m of investment grade bonds with an average credit rating of BBB and £111m invested in USD denominated treasury securities with an average credit rating of AA. Both are classified as Tier 1 in the fair value hierarchy as defined in Note 10.