## THE FUND’S INCOME POSITION FOR FY 2023—ACTUAL OUTCOME

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**Canonical URL:** [THE FUND’S INCOME POSITION FOR FY 2023—ACTUAL OUTCOME](https://www.imf.org/-/media/files/publications/pp/2023/english/ppea2023049.pdf)

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### Executive summary
- Comprehensive net income for FY 2023: SDR 1,730 million (SDR 99 million lower than April projection).
- Main drivers of the variance versus April projection:
  - Remeasurement gain under IAS 19: SDR 346 million lower than anticipated.
  - Higher-than-anticipated operational income: SDR 161 million higher, mainly from the Fixed-Income Subaccount.
- GRA net income increases the Fund’s reserves; a net transfer of currencies of SDR 1,630 million will be made from the GRA to the Fixed-Income Subaccount during FY 2024.
- Precautionary balances at end-FY 2023: SDR 22.6 billion (in line with April projection).

### Income components and operational results
- Total lending income: SDR 2,659 million (broadly in line with April estimates).
  - Margin for the rate of charge: SDR 941 million.
  - Service charges: SDR 115 million.
  - Commitment fees: SDR 196 million.
  - Surcharges: SDR 1,407 million.
- Investment income (Investment Account):
  - Fixed-Income Subaccount investment income: SDR 216 million (actual) versus SDR 66 million (April projection).
    - The higher outcome reflected mainly the decline in US treasury yields in the final two months of FY 2023.
  - Endowment Subaccount investment (loss): SDR (116) million (actual) versus SDR (210) million (April projection).
    - Final two months gains reflected decline in bond yields, stronger equity market performance, and slight USD appreciation against the SDR.
- Interest free resources: SDR 99 million (actual) versus SDR 97 million (projection).
- Reimbursements: SDR 9 million.

### Expenses and pension-related outcomes
- Total expenses: SDR 1,139 million (broadly in line with April estimates).
  - Net administrative expenditures (audited financial statements basis): SDR 1,130 million (Table 1 memorandum).
  - Net administrative budget outturn (USD basis): USD 1,293 million; total administrative expenses per audited financial statements: USD 1,492 million.
- Net periodic pension cost after funding (IAS 19): SDR 77 million (actual) versus SDR 74 million (projection).
- Pension-related remeasurement gain (IAS 19):
  - April projection: SDR 348 million.
  - Actual: SDR 2 million.
  - Primary causes for lower remeasurement gain:
    - Decline in discount rate: projected 5.03 percent to actual 4.72 percent reduced remeasurement gain by SDR 427 million.
    - Other costs higher than estimated by about SDR 114 million.
    - Offset partially by improved plan asset returns reducing anticipated portfolio losses by about SDR 195 million.
- Table 2 reconciles pension-related gains/losses; key pension metrics:
  - Net periodic pension cost (actual): SDR (77).
  - Pension cost accrual: SDR (225).
  - Pension funding: SDR 148.
  - Remeasurement (Actuarial) gain (actual): SDR 2.
  - Discount rate at end of year (actual): 4.72 percent.

### Net income reconciliation and key statistics
- Net operational income before remeasurement gain (A–B): SDR 1,844 million (actual) versus SDR 1,691 million (projection).
- Net operational income after IAS 19 gain (E): SDR 1,846 million (actual) versus SDR 2,039 million (projection).
- Endowment Subaccount investment income/(loss): SDR (116) million (actual) versus SDR (210) million (projection).
- Final net income position: SDR 1,730 million (actual) versus SDR 1,829 million (projection).
- Memorandum and market metrics:
  - Fund credit (average stock, SDR billions): 93.9 (projection) and 94.1 (actual).
  - SDR interest rate (average, in percent): 2.1 (projection) and 2.2 (actual).
  - US$/SDR exchange rate (average): 1.33 (projection) and 1.32 (actual).
  - Precautionary balances (end of period, SDR billions): 22.6 (projection and actual).

### Decisions, reserves placement, and transfers
- Executive Board decisions taken in April 2023 govern FY 2023 outcomes; no further decisions required at time of this report.
- Treatment of FY 2023 operational and investment results:
  - Income of the Fixed-Income Subaccount and Endowment Subaccount retained in their respective subaccounts.
  - Portion of FY 2023 GRA net income equivalent to the pension-related remeasurement gain placed to the Fund’s special reserve; remainder allocated equally between the Fund’s general reserve and special reserve.
- Transfer of currencies from the GRA to the Fixed-Income Subaccount:
  - GRA reserves at April 30, 2023: SDR 28,154 million.
  - GRA reserves at April 30, 2022: SDR 26,524 million.
  - Transfer amount (GRA to Fixed-Income Subaccount): SDR 1,630 million (equivalent to GRA net income for FY 2023, excluding current year investment income retained in the Fixed-Income Subaccount).

### FY 2023 highlights (actual vs. April projection)
- Lending income: 2,659 (actual) vs. 2,650 (projection) — 0% change.
- Investment income (Fixed-Income): 216 vs. 66 — 227% change.
- Investment (Endowment): (116) vs. (210) — -45% change.
- Interest free resources: 99 vs. 97 — 2% change.
- Expenses: 1,139 vs. 1,131 — 0% change.
- Net operational income before remeasurement gain: 1,844 vs. 1,691 — 9% change.
- Pension-related remeasurement gain: 2 vs. 348 — -99% change.
- Net income: 1,730 vs. 1,829 — -5% change.

*Source: THE FUND’S INCOME POSITION FOR FY 2023—ACTUAL OUTCOME, August 16, 2023.*

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_Source: https://www.imf.org/-/media/files/publications/pp/2023/english/ppea2023049.pdf_