The Guide has been prepared to assist economies that participate or are considering participating in the Coordinated Direct Investment Survey (CDIS). The Guide is also intended to assist economies already participating in the CDIS by providing statistical guidelines that compilers may find useful for improving the quality of their direct investment data. It updates the CDIS Guide that was released in 2010 to incorporate clarifications based on the International Monetary Fund’s (IMF’s) experience in conducting the CDIS and in preparing the Balance of Payments and International Investment Position Compilation Guide (BPM6 CG). This chapter covers the purpose, background, and strategy adopted for the implementation of the CDIS, and an overview on how the Guide is organized.
A considerable degree of complexity is involved in organizing a portfolio investment survey to ensure good quality data. Therefore, compilers should carefully consider all possibilities before deciding on the collection system. This chapter guides compilers on this process as follows:
2.1 All countries are welcome to participate. The IMF has invited the participants of the 1997 CPIS; 41 other major investing countries that were invited on the basis of the size of reported portfolio investment in their IIPs or balance of payments statistics; and 16 SEIFiCs (in addition to Bermuda, which participated in the 1997 CPIS). Other IMF members have been advised of the 2001 CPIS and are welcome to participate if they wish.
Direct investment arises when a unit resident in one economy makes an investment that gives control1 or a significant degree of influence on the management of an enterprise that is resident in another economy. This concept is operationalized where a direct investor (DI) owns equity that entitles it to 10 percent2 or more of the voting power3 in the direct investment enterprise (DIENT) (which is usually equal to ownership of ordinary shares). Once that threshold has been reached, the units involved are said to be in a direct investment relationship, and the equity and debt instrument positions between the DI and the DIENT, and between all DIENTs of the same DI, are included in direct investment, except for debt between selected affiliated financial corporations.4 Included in direct investment are units that are under the control or influence of the same immediate or indirect investor, but do not have control or significant influence over one another. These units are known as “fellow enterprises.” Data in the CDIS are recorded by economy based on the location of the immediate counterpart economy relative to a direct investment position.
3.1 The concepts and principles underlying the CPIS are those contained in BPM5. As national compilers apply these concepts and principles, some reporting issues may arise: these practical dimensions are addressed in Chapter 4. In addition, to guide compilers, in 1995 the IMF published the Balance of Payments Compilation Guide, which describes how the conceptual framework in BPM5 can be implemented in practice.
This chapter first defines equity and investment fund shares, and debt instruments, and then explains the valuation methods to be used when requesting data on direct investment positions. As well, a brief introduction to the model survey forms is provided.
While the manner in which the national survey is to be conducted is left to the national compiler, the concepts and principles underlying the national survey are to be applied in conformity with the fifth edition of the International Monetary Fund’s Balance of Payments Manual. To assist compilers in meeting this task, the Task Force identified the following areas where practical guidance is required:
4.1 Although it is essential that CPIS data are comparable across countries—for the data exchange as much as for international comparability—it is not necessary that all countries use the same data collection systems. Instead, national compilers should tailor their collection systems to meet their own circumstances.