163 ANNUAL REPORT 2010 AEGON funds its investments in insurance subsidiaries with a  mixture of debt and equity. AEGON aims to denominate debt  funding in the same currency as the functional currency of  the investment. Investments outside the Eurozone, the United  States, United Kingdom and Canada are funded in euros.  When the debt funding of investments is not in the functional  currency of the investment, AEGON uses derivatives to swap  the currency exposure of the debt instrument to the  appropriate functional currency. This policy will ensure that  total capital will reflect currency movements without distorting  debt to shareholders’ equity ratios. AEGON utilizes various  financial instruments as designated hedging instruments of  its foreign investments. These instruments include long-term  and short-term borrowings, short-term debts to credit  institutions, cross currency swap contracts and forward  foreign exchange contracts. All associates are unlisted and are accounted for using  the equity method and are considered to be non-current.  The investments in associates include interest in insurance  companies that are required to maintain a minimum solvency  margin based on local directives. Such restrictions can affect  the ability of these associates to transfer funds in the form  of cash dividends, or repayment of loans or advances, and  therefore, there can be no assurance that these restrictions  will not become a limitation in the future. There are no  unrecognized shares of losses in associates. The summarized financial information is based on the Group’s  relative holding and excludes any goodwill included in the  measurement of the investment in associates. Refer to note 51  for a listing of the principal investments in associates and the  Group’s percentage holding. SHARPENING OUR FOCUS NOTE 10  INVESTMENTS IN ASSOCIATES  DERIVATIVE INSTRUMENTS DESIGNATED AS NET  FOREIGN INVESTMENT HEDGES < 1 year 1 – 5  years 5 – 10  years > 10 years 2009  Total Cash infl ows 391 1,743 1,779 1,892 5,805 Cash outfl ows 2 5 – – 7 NET CASH FLOWS 389 1,738 1,779 1,892 5,798 2010 2009 At January 1 696 595 Additions 23 112 Disposals (1) – Share in net income 41 23 Share in changes in associate’s equity (note 15.5) (25) 27 Deferred gains on disposal 1 1 Impairment losses – (6) Dividend (13) (53) Net exchange difference 11 5 Other – (8) AT DECEMBER 31 733 696 Summarized fi nancial information of associates 2010 2009 Assets 12,382 11,070 Liabilities 11,944 10,662 Revenue 2,163 2,050 Net income 41 23