By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The International Monetary Fund (IMF) on Tuesday said cross-border holdings of securities climbed up nine percent (9%) to $46.7 trillion for 2013 year end according to the Fund’s Coordinated Portfolio Investment Survey (CPIS) in the review period.
The IMF said 74 economies submitted end-December 2013 data and 56 economies reported data both for end-June and end-December 2013, holdings increased by 9 percent, largely reflecting strong increases in equity prices in several advanced markets.
The survey said as of end-December 2013, 70 percent of the total portfolio investment assets ($ 32.7 trillion) were concentrated in 10 economies. The United States, the United Kingdom, Luxembourg, Japan and Germany ranked in the top five.
According to report, the CPIS covered only end-December holdings in 2001-2012. ‘’Starting with end-June 2013 data, a number of enhancements were adopted, including semi-annual frequency, acceleration in dissemination of results, and enhancements in the scope of the data collection, including the collection of data on the institutional sector of the nonresident issuers of securities, and on the institutional sector of the resident holder cross-classified by the institutional sector of selected nonresident issuers,’’ the IMF said.
Economies covered by the CPIS are also encouraged to report additional detail on the currency composition of holdings, as well as on their portfolio investment liabilities. The concepts and principles underlying the CPIS are aligned with the IMF’s Balance of Payments and International Investment Position Manual, sixth edition (BPM6).
The global lender said the coverage of the CPIS is augmented with information from two (2) other IMF surveys, namely Securities held as Foreign Exchange Reserves, and Securities held by International Organizations. These data sets are disseminated at an aggregate level only, as the data are collected on a confidential basis.
The CPIS is the only global survey of portfolio investment holdings, and collects information on cross-border holdings of equities and long- and short-term debt securities classified by the economy of residence of the issuer.
