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.
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.
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.
5.1 The CPIS requires considerable preparation by individual national compilers if it is to be a success: from preparing a timetable, to consulting potential survey respondents, to deciding on the software packages that can be used to process the survey returns. This chapter discusses some of the preparatory steps and provides practical advice based on the experience of the experts on the Task Force. In the event that national compilers might also require additional advice, a network has been established to link compilers with considerable expertise in conducting portfolio investment surveys with those who need guidance in conducting such surveys. Compilers may contact any of the members of the IMF Task Force on the 2001 CPIS (shown at the front of the document) or the project manager at the IMF (the address is provided in Chapter 2, Section II.D).
6.1 Countries’ choices of collection method were influenced by a number of factors, such as availability of the data, ease of collection, respondent burden, availability of resources, existing surveys for collecting data for the international investment position (IIP), a country’s national circumstances, and its institutional arrangements. What is important is that the choice maximizes the coverage (without double counting) while minimizing the costs to the respondents and remaining within the resources of the compiler.