Note 4

Net income, unlisted shares and participations

  2016 2015
Realized gains  550 278
Unrealized changes in values  2 995 3 555
Net income, unlisted shares and participations  3 545 3 833

Recognition of external management fees for unlisted assets is made according to two different principles, and is dependent on whether the underlying management agreements permit repayment prior to profit sharing in connection with future profitable exits or not. In the case where contracts permit such repayment, the repaid fees are recognized as part of the acquisition cost of the asset and are charged as Unrealized net income for unlisted assets. Consequently, repaid management fees affect Unrealized earnings. In cases where the agreement does not permit repayments, paid fees are charged to Commission expenses.

During the year, a total of SEK 46 (39) million was paid in management fees for unlisted assets, of which SEK 46 (39) million permit repayment in accordance with the above principle. During the year, SEK 96 (36) million was repaid and the unrealized result of unlisted shares had a net impact of SEK 50 (negative by 3) million. Paid fees in which contracts did not permit repayment amounted to SEK 0 (0) and is recognized as Commission expenses, please see Note Commission expenses.