Chapter

Annex 6. The Coordinated Portfolio Investment Survey and the Coordinated Direct Investment Survey

Author(s):
Jose Cartas, and Qi He
Published Date:
June 2015
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The Coordinated Portfolio Investment Survey

A6.1 The Coordinated Portfolio Investment Survey (CPIS) is conducted on a semi-annual basis under the auspices of the International Monetary Fund (IMF) Statistics Department (STA). Participation in the survey is voluntary, and 74 economies participated as of end-2013.1 Annual data are available from 2001.

A6.2 The CPIS provides information on individual economies’ holdings of portfolio investment securities (equity and debt securities) valued at market prices, broken down by the economy in which the issuer is resident. Participants use the definitions and classifications set out in the Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), and the second edition of the Coordinated Portfolio Investment Survey Guide.

A6.3 Holdings of securities recorded as direct investment are not included in the results of the CPIS.2 STA collects details of reserve assets holdings from the economies participating in the CPIS through a companion survey: the survey of Securities Held as Foreign Exchange Reserves (SEFER). In addition, information on the securities holdings of major international organizations is reported to STA in a companion survey: the survey of Securities Held by International Organizations (SSIO). The data on reserve assets and on holdings by international organizations are disclosed in such a way that individual holders cannot be identified, as this information is confidential.

A6.4 Together, the three surveys (the CPIS, SEFER, and the SSIO) provide a database on cross-border holdings of securities, broken down on the basis of the economy in which the issuer is resident and the type of security.

A6.5 In addition to “core” data on the counterpart economy where the issuer is resident, participants are encouraged to provide supplementary information on the currency in which the underlying instruments are denominated and the sector to which the resident holder belongs. No data are currently reported on the issuer’s economic sector. Participants are also encouraged to collect supplementary information on the stock of securities issued by the reporting economy (liabilities), broken down on the basis of the economy in which the nonresident holder resides and the type of security.

A6.6 The core elements of the CPIS allow a time series analysis of results from two perspectives. First, they allow an analysis of reporting economies’ holdings of portfolio investment securities, which highlights changes in the geographical distribution of their investment. Second, the CPIS enables time series data on the portfolio investment liabilities of the economies that issued the securities to be derived from creditor information. This time series can be regarded as a lower bound, as not all economies participate in the CPIS (and of those that do, some do not cover all residents’ holdings).

A6.7 The overall structure of the CPIS: (1) provides, at an aggregate level, details of both assets and liabilities (the latter being derived from creditor data), with a breakdown by financial instrument, which is, in turn, broken down by holding and issuing economy; and (2) provides a breakdown of financial instruments on the basis of the currency of denomination and/or a breakdown of the holding sector on the basis of the issuing economy.

A6.8 In line with the recommendations made in the October 2009 report entitled “The Financial Crisis and Information Gaps,” the IMF has increased the frequency and timeliness of CPIS data, making the data collections at least semi-annual (instead of annual) and reducing the dissemination lag to less than nine months. The IMF is also encouraging the reporting of data on both the institutional sector of the foreign debtor and short/negative positions.

The Coordinated Direct Investment Survey

A6.9 The Coordinated Direct Investment Survey (CDIS) is a global data collection initiative led by the IMF. The purpose of the CDIS is to improve the availability and quality of data on direct investment both overall and by immediate counterpart economy. Consequently, the CDIS supports the objective of developing “from-whom-to-whom” cross-border data, complementing the CPIS and the Bank for International Settlements (BIS) international banking statistics, and contributing to a better understanding of financial interconnectedness.

A6.10 The CDIS is conducted on an annual basis and the results start with data for end-2009.3 Preliminary data are requested nine months after the end of the reference period and released in December. Revised and more comprehensive data are then released in the middle of the following year (i.e., with a total lag of 18 months).

A6.11 The survey’s concepts, coverage, valuation methods, and classification criteria are all consistent with the BPM6 and the fourth edition of the Organisation for Economic Co-operation and Development (OECD) Benchmark Definition of Foreign Direct Investment. Accordingly, foreign direct investment (FDI) arises when a unit resident in one economy (the direct investor) makes an investment that gives it a significant degree of influence over the management of an enterprise resident in another economy (the direct investment enterprise, or DIENT). This concept is operationalized where a direct investor owns equity (usually ordinary shares) that entitles it to 10 percent or more of the voting power in the DIENT. Once that threshold has been reached, the entities involved are said to be in a “direct investment relationship,” and the equity and debt positions between the direct investor and the DIENT, and between all enterprises that are in a direct investment relationship with that investor (with the exception of debt positions between selected financial intermediaries), are included in direct investment. This includes entities that have a common direct investor, but do not hold 10 percent or more of each other’s equity. These entities are known as “fellow enterprises.”

A6.12 The CDIS collects comprehensive and harmonized data on direct investment positions for each economy at year-end based on the residence of the immediate counterpart to a direct investment position, with equity reported separately from debt investment. For inward direct investment, participating countries compile the value of outstanding year-end positions, broken down by immediate (first) counterpart economy (i.e., the economy of the direct investor), for both equity and debt instruments. For outward direct investment, participating countries provide information on the value of outstanding year-end positions, broken down by immediate (first) counterpart economy (i.e., the economy of the DIENT), for both equity and debt instruments. For inward and outward investment, gross debt liabilities and gross debt assets should be identified separately. However, it is recognized that, owing to the need to preserve data confidentiality, some economies may be able to provide data only on total debt positions (which net out claims and liabilities). Further breakdowns separating positions between fellow enterprises from positions between direct investors and the DIENT and showing the positions of resident financial intermediaries separately from other direct investment positions are encouraged. Countries provide metadata as part of their overall reporting to the IMF.

Table A.6.1Main Structure of the Coordinated Portfolio Investment Survey
Breakdown byOf which:
(i) currency of denomination or
(ii) country of residence of holder and issuerEquitiesDebt securitiesLong-term debt securitiesShort-term debt securitiesTotal
Holding sector
Of which:Of which:
Investment in (bilateral data)Total assetsMonetary authoritiesBanksOther financial institutionsInsurance corporationsNon-MMF investment fundsOtherGeneral governmentNonfinancial sectorNonfinancial corporationsHouseholdsOther
Note: In this sectoral breakdown, the CPIS in its current format does not use the term “non-MMF investment funds,” but instead the term “mutual funds” is used.
Table A.6.2Main Structure of the Coordinated Direct Investment Survey (Inward)
Of which: Total inward direct investment with fellow enterprises abroad
Debt instruments
Country of residence of foreign direct investor or fellow enterpriseTotal inward direct investmentNet debtGross debt instrumentsEquity plus debt with fellow enterprises abroad
Equity (Inward-Net)Inward-NetResident financial intermediaries (liabilities minus assets)All other resident enterprises (liabilities minus assets)Total debt instrument liabilitiesTotal debt instrument assetsNet-InwardTotal equity and debt instrument liabilitiesTotal equity and debt instrument assets

A6.13 The CDIS data release shows mirror data, that is, data on inward FDI positions reported by an economy are shown alongside data on outward FDI positions reported by each counterpart economy. Similarly, data on outward FDI positions reported by an economy are shown alongside data on inward FDI positions reported by each counterpart economy. This means that the data reported can easily be compared and inconsistencies identified.

A6.14 In terms of equity, the CDIS covers all of the financial instruments set out in Chapter 3, such as shares (both listed and unlisted), stocks, participation certificates, and depository receipts, as well as equity that is not in the form of securities. The values on the books of the DIENT should be used for both inward and outward direct investment.

The number of participants has increased over the years. Twenty-nine countries participated in the first survey in 1997. For a guide to the CPIS and SEFER surveys, see: cpis.imf.org/docs/misc/CPIS_and_SEFER_Guidance_Note_on_The_Revised_Reporting_Forms.pdf.

These holdings are covered in the Coordinated Direct Investment Survey (CDIS), also conducted under the auspices of STA. The CDIS is conducted annually, providing data as at year-end. The first CDIS provided data as at end-2009.

For a guide to the CDIS, as well as data and metadata, see: www.imf.org/external/np/sta/cdis/index.htm.

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