Report on
U.S. Holdings of
Foreign Long-Term Securities
as of December 31, 1997,
and December 31, 1999
Office of the Assistant Secretary, International Affairs
Department of the Treasury
Division of International Finance
Board of Governors of the Federal Reserve System
April 2000
CONTENTS
Introduction...............................................................................................................................1
Chapter 1. Findings from the 1997 Survey..................................................................................3
Chapter 2. U. S. Holdings of Foreign Long-Term Securities
as of December 31,
1999.......................................................................................22
Chapter 3. Survey Methodology...............................................................................................26
Tables
1. U.S. Holdings of Foreign Long-Term Securities, by Country and Type
of Security, as of December 31,
1997.....................................................................................4
2. U.S. Holdings of Foreign Long-Term Securities, by Type of Security,
for the Top Ten Countries of Investment and the Rest of the World, as
of
December 31,
1997...............................................................................................................7
3. U.S. Holdings of Foreign Long-Term Securities for the Top Ten
Countries and the Rest of the World, as of March 31, 1994, and
December 31,
1997...............................................................................................................8
4. U.S. Holdings of Foreign Long-Term Securities, by Positions,
Adjusted Transactions, and Resulting Differences,
as of March 31, 1994, and December 31,
1997......................................................................9
5. U.S. Holdings of Foreign Long-Term Securities and Foreign Holdings
of U.S. Long-Term Securities,
1984-97................................................................................10
6. U.S. Holdings of Foreign Equities, by Country of Investment, Amount
Held, and Amount Held in U.S.-Traded Securities, for the Top Ten
Countries of Investment and the Rest of the World, as of
December 31,
1997.............................................................................................................11
7. U.S. Holdings of Foreign Long-Term Debt Securities, by Country,
Amount Held, Amount Held Issued in the United States, and Amount
Denominated in U.S. Dollars, for the Top Ten Countries of Investment
and the Rest of the World, as of December 31,
1997............................................................12
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8. U.S. Holdings of Foreign Long-Term Securities, by Country, Amount
Held, and Amount Traded in the United States, for the Top Ten
Countries of Investment and the Rest of the World,
as of December 31,
1997.....................................................................................................13
9. U.S. Holdings of Foreign Long-Term Securities in Developed Countries
Emerging Markets, and Caribbean Financial Centers, as of March 31,
1994, and December 31,
1997.............................................................................................14
10. U.S. Holdings of Foreign Long-Term Securities, by Continent,
as of March 31, 1994, and December 31,
1997..................................................................15
11. U.S. Holdings of Foreign Long-Term Debt Securities, by Currency
of Denomination, as of March 31, 1994, and December 31,
1997.......................................16
12. U.S. Holdings of Foreign Long-Term Debt Securities, by Remaining
Term to Maturity, as of December 31,
1997.......................................................................17
13. U.S. Holdings of Foreign Long-Term Debt Securities, by Country and
Sector of Issuer, as of December 31,
1997.........................................................................18
14. U.S. Holdings of Foreign Long-Term Securities, by Industry,
as of December 31,
1997...................................................................................................20
15. U.S. Holdings of Foreign Long-Term Securities, Net Transactions,
and Changes in Percentage and Valuation, by Type of
Security,
as of December 31, 1997 and
1999....................................................................................22
16. U.S. Holdings of Foreign Securities, as of December 31, 1997 and 1999............................23
17. U.S. Holdings of Foreign Equity Securities, as of December 31, 1997
and
1999............................................................................................................................24
18. U.S. Holdings of Foreign Long-Term Debt Securities, as of
December 31, 1997 and
1999............................................................................................25
Appendixes
A. Statistical Tables
A.1. U.S. Holdings of Foreign Long-Term Debt Securities, by Sector of
Issuer, as of December 31,
1997.....................................................................................30.
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A.2. U.S. Holdings of Foreign Long-Term Securities, by Total Held,
Amount Traded in U.S. Markets, and ADRs, as of
December 31, 1997............................33
A.3. U.S. Holdings of Foreign Equity Securities, by Type of Security,
as of December 31,
1997.................................................................................................36
A.4. U.S. Holdings of Foreign Long-Term Debt Securities, by Type of
Security, as of December 31,
1997...................................................................................40
B. Forms and Instructions
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Introduction
This report presents data and analyses regarding U.S. portfolio investment in foreign equity and debt securities.1 The data are drawn primarily from the latest comprehensive benchmark survey of U.S. holdings of foreign long-term securities as of December 31, 1997. The survey was a joint undertaking of the U.S. Treasury Department and the Board of Governors of the Federal Reserve System. This information has been supplemented and updated with transactions data from the Treasury International Capital (TIC) reporting system to present information on U.S. foreign portfolio investment as of December 31, 1999, whenever possible.
The 1997 benchmark survey collected detailed information at the individual security level for equity and long-term debt (original term-to-maturity in excess of one year) securities. It is therefore possible to present findings from the survey in a wide variety of ways, such as by country, type of security, currency, remaining term to maturity, industry, and so forth. The TIC system, however, collects information only by country and security type (equity or debt); thus, the more recent information presented as of year-end 1999 is not as detailed as the information presented as of year-end 1997.
The 1997 survey was the second such survey conducted by the United States.2 The previous survey collected data as of March 31, 1994. The United States began to conduct these surveys as the level of U.S. investment in foreign securities started to grow significantly in the 1990s. The next such survey will collect data as of year-end 2001. The United States plans to conduct portfolio asset surveys at least once every three years starting with the 2001 survey.
The 1997 survey was part of an internationally coordinated effort under the auspices of the International Monetary Fund (IMF).3 Twenty-nine countries, including most of the industrial countries, participated in the survey.4 This coordinated effort was undertaken primarily because there was a wide discrepancy between worldwide measured portfolio assets and worldwide measured portfolio liabilities, with reported liabilities greatly exceeding reported assets. A major
_________________
1. Portfolio investment is defined as ownership or control, by one person or an affiliated group, of less than 10 percent of the voting equity of a business enterprise.
2. The Treasury Department conducted a survey during World War II of all foreign assets owned by U.S. residents as of May 1943. Though this survey measured portfolio investment as well as other forms of investment, it is sufficiently removed in time and different in purpose that it is fair to state that the 1994 survey is the first of its kind. For the 1994 survey results, see Department of the Treasury, 1994 Benchmark Survey of U.S. Ownership of Foreign Securities, July 1998.
3. International Monetary Fund, Results of the 1997 Coordinated Portfolio Investment Survey, January 31, 2000.
4. Participating countries were Argentina, Australia, Austria, Belgium, Bermuda, Canada, Chile, Denmark, Finland, France, Iceland, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, the Netherlands, New Zealand, Norway, Portugal, Singapore, South Korea, Spain, Sweden, Thailand, the United Kingdom, the United States, and Venezuela.
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reason for the asset undercount was perceived to be that many countries had been placing greater emphasis on measuring portfolio liabilities than on measuring portfolio assets out of concern that foreign investment in their economies might expose them to influences beyond their direct control. Typically, the world's major industrial countries have begun to conduct portfolio asset surveys only during the past ten years, and many have begun their efforts as a result of the coordinated survey. The U.S. asset survey as of year-end 2001 will also be part of an IMF-coordinated effort. This survey will measure U.S. holdings of both long-term and short-term securities
The primary reason for conducting portfolio asset surveys is to determine the level of U.S. holdings of foreign securities. The TIC reporting system measures purchases and sales of foreign securities on a monthly basis. In theory, all such transactions are measured by this system, as U.S. regulations require that all major transactions in foreign securities should be reported to the TIC reporting system. However, as international communications have become more efficient and less expensive, this has enabled an ever-increasing number of U.S. investors to participate directly in foreign securities markets. As the number of intermittent, less-predictable participants has increased, the likelihood that some transactions will not be recorded also has increased. The results of the past two asset surveys seem to indicate this, as the 1994 survey measured foreign holdings some 60 percent higher than predicted based on price-adjusted and exchange-rate- adjusted TIC transactions data, and the 1997 survey measured holdings 21 percent higher. These survey findings have had the effect of reducing the estimated deficits in the U.S. balance of payments accounts and international investment position. The U.S. international investment position was revised as of year-end 1997 as a result of the survey, such that the U.S. net debtor position was decreased $293 billion. The U.S. balance of payments deficit for 1997 was reduced more than $10 billion as a result of the survey because of increased estimates of interest and dividends received from foreign securities by U.S. residents.
Chapter 1 of this report presents the 1997 survey findings. Chapter 2 combines these data with price-adjusted and exchange-rate-adjusted TIC transactions data to present estimated U.S. holdings of foreign securities as of year-end 1999. Chapter 3 discusses survey methodology. Appendix A presents a variety of statistics not elsewhere included in the report. Appendix B contains a copy of the forms and instructions used by the survey.
The Treasury Department and the Federal Reserve Board wish to express their appreciation to all survey respondents whose efforts and information have made this report possible.
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Chapter 1. Findings from the 1997 Survey
The data presented in this chapter are drawn primarily from the survey of U.S. holdings of foreign long-term securities (original term to maturity of more than one year) conducted as of December 31, 1997. Data from the previous such survey--conducted as of March 31, 1994--are also frequently included. In all tables in this report, components may not sum to totals because of rounding.
Level of Investment by Country and Type of Security
Table 1 shows U.S. foreign portfolio investment in long-term securities by country and type of investment (equity or debt). One hundred sixty-four countries attracted at least some U.S. investment. The table shows only those regions that attracted at least $500,000 in U.S. investment.
The table shows a strong preference by U.S. investors for foreign equity securities as opposed to debt securities, with $1,208 billion invested in equities and $547 billion invested in debt securities. The previous survey showed a similar preference on the part of U.S. investors, with more than 65 percent of measured investment occurring in equities. This is in marked contrast to the pattern of foreign portfolio investment in the United States as of December 31, 1997, when only 33 percent of foreign investment is in equity securities.5
However, U.S. investors have not always preferred foreign equities over debt securities. The survey conducted by the United States during World War II found that equities accounted for only 38 percent of U.S. foreign securities holdings. Bringing these figures forward to 1984 by using price- and exchange-rate-adjusted transactions data showed that in 1984 only 29 percent of U.S. foreign securities holdings were in equities. But after 1984, U.S. investors began to favor foreign equities over debt securities, and by 1987, the levels of debt and equity held were essentially equal.
Though U.S. portfolio investment is widespread, it is also highly concentrated, with approximately 67 percent of total investment occurring in only ten countries. Table 2 shows U.S. investment in these ten countries. Five countries attracted more than $100 billion in U.S. investment; twenty-seven countries had at least $10 billion; and fifty-four countries had at least $1 billion.
The United Kingdom was the country of choice for U.S. investors as of the date of the survey, with some $272 billion in U.S. investment. Canada finished a distant second with $177 billion in U.S. investment, followed by Japan, the Netherlands, and Germany.
_________________
5. See U.S. Department of the Treasury, Report on Foreign Portfolio Investment in the United States as of December 31, 1997.
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Table 1. U.S. Holdings of Foreign Long-Term Securities,
by Country and Type of Security, as
of
December 31, 1997
Millions of dollars
Country or entity |
Total |
Equity |
Debt |
Country or entity |
Total |
Equity |
Debt |
Albania | 32 | 0 | 32 | Costa Rica | 165 | 0 | 165 |
Andorra | 14 | 5 | 9 | Cote d'Ivoire | 459 | 2 | 456 |
Argentina | 38,567 | 12,892 | 25,675 | Croatia | 496 | 126 | 370 |
Aruba | 22 | 11 | 11 | Cyprus | 322 | 120 | 202 |
Australia | 46,999 | 31,120 | 15,879 | Czech Republic | 809 | 763 | 45 |
Austria | 5,662 | 3,707 | 1,954 | Denmark | 16,758 | 8,917 | 7,841 |
Bahamas | 911 | 568 | 342 | Dominica | 2 | 2 | 0 |
Bangladesh | 7 | 7 | 0 | Dominican Republic | 87 | 0 | 87 |
Barbados | 17 | 1 | 16 | Ecuador | 2,032 | 98 | 1,934 |
Belarus | 3 | 1 | 2 | Egypt | 832 | 763 | 69 |
Belgium | 9,169 | 6,099 | 3,070 | El Salvador | 50 | 39 | 12 |
Belize | 34 | 29 | 5 | Estonia | 27 | 17 | 10 |
Bermuda | 26,607 | 22,617 | 3,989 | Finland | 20,715 | 14,785 | 5,930 |
Bolivia | 12 | 0 | 12 | France | 99,752 | 85,019 | 14,733 |
Bosnia and Herzegovina |
3 | 0 | 3 | Gambia | 32 | 0 | 32 |
Botswana | 148 | 131 | 16 | Germany | 108,414 | 64,965 | 43,449 |
Brazil | 51,656 | 31,338 | 20,318 | Ghana | 358 | 358 | 0 |
British Virgin Islands | 1,139 | 698 | 440 | Greece | 2,741 | 1,513 | 1,228 |
Bulgaria | 1,310 | 0 | 1,310 | Guadeloupe | 1 | 0 | 1 |
Burma | 142 | 3 | 139 | Guatemala | 193 | 2 | 191 |
Cambodia | 1 | 1 | 0 | Guernsey | 450 | 378 | 72 |
Cameroon | 4 | 0 | 4 | Honduras | 17 | 0 | 17 |
Canada | 177,473 | 70,798 | 106,675 | Hong Kong | 31,628 | 28,102 | 3,526 |
Cayman Islands | 19,247 | 5,612 | 13,635 | Hungary | 4,846 | 3,483 | 1,363 |
Chile | 8,127 | 4,555 | 3,571 | Iceland | 309 | 3 | 306 |
China | 5,434 | 2,256 | 3,178 | India | 8,138 | 6,176 | 1,962 |
Colombia | 4,163 | 704 | 3,458 | Indonesia | 4,344 | 2,488 | 1,857 |
Comoros | 21 | 2 | 19 | International organizations |
16,975 | 10 | 16,965 |
Congo (Brazzaville) | 13 | 0 | 13 | Ireland | 17,609 | 14,090 | 3,519 |
Cook Islands | 1 | 1 | 0 | Isle of Man | 9 | 9 | 0 |
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Table 1. U.S. Holdings of Foreign Long-Term Securities,
by Country and Type of Security, as
of
December 31, 1997 (Continued)
Millions of dollars
Country or entity |
Total |
Equity |
Debt |
Country or entity |
Total |
Equity |
Debt |
Israel | 12,298 | 7,036 | 5,262 | New Caledonia | 1 | 1 | 0 |
Italy | 59,171 | 41,547 | 17,624 | New Zealand | 8,817 | 5,311 | 3,506 |
Jamaica | 329 | 3 | 326 | Nicaragua | 76 | 0 | 76 |
Japan | 166,758 | 136,404 | 30,354 | Norway | 14,267 | 9,493 | 4,773 |
Jersey | 1,555 | 1,517 | 37 | Pakistan | 1,521 | 1,180 | 341 |
Jordan | 218 | 40 | 179 | Palau | 1 | 0 | 1 |
Kazakhstan | 121 | 1 | 120 | Panama | 6,594 | 3,556 | 3,039 |
Kenya | 36 | 19 | 17 | Papua New Guinea | 174 | 165 | 9 |
Kiribati | 24 | 0 | 24 | Paraguay | 81 | 0 | 81 |
Korea (South) | 15,262 | 4,428 | 10,834 | Peru | 3545 | 2,341 | 1,203 |
Latvia | 4 | 4 | 0 | Philippines | 7,326 | 2,848 | 4,479 |
Lebanon | 814 | 133 | 680 | Poland | 4,495 | 1,618 | 2,877 |
Lesotho | 73 | 70 | 3 | Portugal | 8,233 | 6,993 | 1,240 |
Liberia | 1,400 | 924 | 476 | Romania | 211 | 4 | 207 |
Liechtenstein | 5 | 5 | 0 | Russia | 12,153 | 8,457 | 3,696 |
Lithuania | 41 | 14 | 27 | Sao Tome and Principe |
33 | 0 | 33 |
Luxembourg | 8,289 | 5,345 | 2,944 | Senegal | 7 | 4 | 3 |
Macedonia | 20 | 0 | 20 | Serbia and Montenegro |
13 | 0 | 13 |
Madagascar | 2 | 1 | 1 | Seychelles | 54 | 8 | 46 |
Malaysia | 9,077 | 4,713 | 4,365 | Sierra Leone | 1 | 1 | 0 |
Malta | 148 | 0 | 148 | Singapore | 10,735 | 10,185 | 550 |
Marshall Islands | 35 | 0 | 35 | Slovakia | 184 | 87 | 97 |
Mauritius | 730 | 65 | 666 | Slovenia | 224 | 56 | 168 |
Mexico | 63,752 | 34,965 | 28,786 | Somalia | 6 | 3 | 3 |
Moldova | 39 | 0 | 39 | South Africa | 12,541 | 9,937 | 2,604 |
Morocco | 561 | 217 | 344 | Spain | 32,146 | 25,223 | 6,922 |
Namibia | 132 | 130 | 2 | Sri Lanka | 193 | 133 | 60 |
Nauru | 1 | 1 | 0 | Suriname | 46 | 46 | 0 |
Netherlands | 120,150 | 106,984 | 13,166 | Swaziland | 1 | 1 | 0 |
Netherlands Antilles | 17,002 | 15,809 | 1,193 | Sweden | 51,886 | 38,783 | 13,102 |
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Table 1. U.S. Holdings of Foreign Long-Term Securities,
by Country and Type of Security, as
of
December 31, 1997 (Continued)
Millions of dollars
Country or entity |
Total |
Equity |
Debt |
Country or entity |
Total |
Equity |
Debt |
Switzerland | 63,141 | 61,897 | 1,243 | United Kingdom | 271,680 | 217,525 | 54,155 |
Taiwan | 6,227 | 4,939 | 1,288 | Unknown country | 781 | 335 | 446 |
Thailand | 5,623 | 2,158 | 3,466 | Uruguay | 612 | 15 | 598 |
Tokelau Islands | 20 | 0 | 20 | Venezuela | 7,827 | 1,975 | 5,852 |
Tonga | 50 | 0 | 50 | Vietnam | 37 | 0 | 37 |
Trinidad and Tobago | 464 | 1 | 463 | Zambia | 9 | 7 | 2 |
Tunisia | 280 | 0 | 280 | Zimbabwe | 169 | 133 | 36 |
Turkey | 7,011 | 6,005 | 1,005 | African oil exporters1 | 843 | 61 | 782 |
Turks and Caicos Islands |
420 | 384 | 35 | Middle East oil exporters2 |
515 | 84 | 430 |
Uganda | 1 | 1 | 0 | ||||
Ukraine | 91 | 61 | 29 | Total | 1,755,014 | 1,207,787 | 547,228 |
1. Algeria, Gabon, Libya, and Nigeria.
2. Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
In this report, data for Hong Kong are presented separately from those for China, and data for the islands of Jersey, Guernsey, and the Isle of Man are presented separately from those of the United Kingdom. U.S. holdings of debt issued by international organizations represent issues primarily of the International Bank for Reconstruction and Development (World Bank), the Inter-American Development Bank, the African Development Bank, and the European Investment Bank.
U.S. Portfolio Investment by Country in Descending Order
Geography obviously influences the pattern of U.S. foreign investment, with both Canada and Mexico attracting a greater percentage of U.S. investment than would be expected based solely on the size of their capital markets. The level of U.S. investment in Canadian debt securities is noteworthy, as the $107 billion figure represents approximately 20 percent of U.S. foreign debt holdings. This is strongly influenced by the tendency of Canadian institutions to issue their debt securities directly in the United States. Approximately $68 billion of the Canadian debt figure represents securities issued directly in the United States, the majority of which were denominated in U.S. dollars.
- 6 -
Table 2. U.S. Holdings of Foreign Long-Term Securities, by Type of
Security, for the Top Ten
Countries
of Investment and the Rest of the World, as of December 31, 1997
Billions of dollars except as noted
Country |
|
|
|
Rank according to |
United Kingdom | 272 |
218 |
54 |
2 |
Canada | 177 |
71 |
107 |
7 |
Japan | 167 |
136 |
30 |
1 |
Netherlands | 120 |
107 |
13 |
8 |
Germany | 108 |
65 |
43 |
3 |
France | 100 |
85 |
15 |
5 |
Mexico | 64 |
35 |
29 |
17 |
Switzerland | 63 |
62 |
1 |
6 |
Italy | 60 |
42 |
18 |
10 |
Sweden | 52 |
39 |
13 |
13 |
Rest of world | 573 |
348 |
224 |
... |
Total | 1,755 |
1,208 |
547 |
... |
... Not applicable.
The Netherlands also appears higher on the list than might be expected. This again is
strongly influenced by the presence of U.S.-traded securities. Many of the largest
American Depositary Receipt (ADR) programs represent shares of Dutch companies, and nearly
half of the $107 billion in U.S.-owned Dutch equities represents holdings of ADRs.6
The ratio of U.S. holdings of Swiss equity ($62 billion) to Swiss debt ($1 billion) is striking. This pattern reflects the fact that relatively little debt has been issued by Swiss firms and Swiss governmental organizations, whereas the Swiss equity market is one of the largest in the world.
The United Kingdom was by far the first choice of U.S. international investors as of the end of 1997, but as table 3 shows, Japan was the country of choice at the time of the previous asset survey, on March 31, 1994.
_________________
6. American Depositary Receipts (ADRs) are receipts for shares of stock in foreign companies that are held in a custodial account by or for a U.S. bank. These receipts are traded on U.S. exchanges in U.S. dollars. ADRs entitle the owners to all dividends, capital gains or losses, and voting rights, just as if the underlying shares were owned directly.
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Level of Investment by Country, 1994 and 1997
Table 3 shows the rapid growth of U.S. portfolio holdings abroad during the March 1994 to December 1997 period, with U.S. portfolio investment more than doubling in nominal terms over forty-five months. It also shows significant changes in the placement of U.S. portfolio assets, with Japan losing the position it held in 1994 as the country of choice for U.S. portfolio investors. In general, Europe attracted a greater share of U.S. investments in 1997, with the percentage share of total U.S. foreign investments increasing in six of the seven European countries that appear in the table. Also, the pattern of U.S. investment was more diversified in 1997, as the percentage of total U.S. investment placed in countries and regions other than the ten leading countries increased over this period from 27.5 percent to 32.6 percent.
Table 3. U.S. Holdings of Foreign Long-Term Securities for the Top Ten
Countries of
Investment
and the Rest of the World, as of March 31, 1994, and December 31, 1997
Billions of dollars except as noted
Amount invested |
Rank |
Percentage of total |
||||
Country |
1997 |
1994 |
1997 |
1994 |
1997 |
1994 |
United Kingdom | 272 |
120 |
1 |
2 |
15.5 |
13.7 |
Canada | 177 |
108 |
2 |
3 |
10.1 |
12.4 |
Japan | 167 |
131 |
3 |
1 |
9.5 |
15.1 |
Netherlands | 120 |
48 |
4 |
6 |
6.8 |
5.5 |
Germany | 108 |
48 |
5 |
5 |
6.2 |
5.5 |
France | 100 |
42 |
6 |
7 |
5.7 |
4.8 |
Mexico | 64 |
52 |
7 |
4 |
3.6 |
6.0 |
Switzerland | 63 |
21 |
8 |
12 |
3.6 |
2.4 |
Italy | 60 |
32 |
9 |
8 |
3.4 |
3.7 |
Sweden | 52 |
22 |
10 |
11 |
3.0 |
2.5 |
Rest of world | 573 |
2391 |
... |
... |
32.6 |
27.51 |
Total | 1,755 |
870 |
... |
... |
100 |
100 |
... Not applicable.
1. The amount and percentage for "rest of world" were computed using all but the top ten countries as of the 1994 survey rather than the top ten countries as of year-end 1997.
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The order in which countries are ranked changed quite a bit during the period between the two surveys; this was due in large part to the performance of local equity markets rather than to changes in the patterns of U.S. investments. Much of the change in rank order was due to Japan's drop from first to third position and Mexico's drop from fourth to seventh. The average share prices in Japan and Mexico decreased during this period, whereas those of Canada and the European countries in table 3 increased significantly.
The rise in the value of U.S. foreign holdings raises the question of the extent to which this increase is attributable to increased net investments rather than to changes caused by adjustments for price or exchange rate or both to existing assets. This question is somewhat difficult to answer because, as mentioned in the introduction, when the accumulated flows since the 1994 survey are adjusted for price and exchange rate and added to the 1994 survey levels, the result is a figure 21 percent lower than the level measured by the 1997 survey. Thus, either the transactions data undercount, or the survey overcounts, or both. Table 4 shows the levels of equity and debt measured by the two surveys; the measured transactions in the period between the two surveys; the applicable price and exchange rate adjustments as computed by the Commerce Department's Bureau of Economic Analysis (BEA); the resulting year-end 1997 position derived by adding the transactions and price adjustments to the 1994 survey results; and the resulting unexplained difference between the estimated and the measured 1997 figures.
Table 4. U.S. Holdings of Foreign Long-Term Securities, by Positions,
Adjusted Transactions,
and
Resulting Differences, as of March 31, 1994, and December 31, 1997
Billions of dollars
Type of security |
|
1994-97 |
1997 |
|||
Net |
Valuation |
Estimated |
Measured |
Difference |
||
Debt | 304 |
159 |
-18 |
445 | 547 | 102 |
Equity | 567 |
179 |
255 |
1,001 | 1,208 | 207 |
Total | 870 |
338 |
238 |
1,446 | 1,755 | 309 |
1. Adjustments for price and exchange rate as computed by BEA.
The table shows that net adjustments to debt were negative; thus all gains in U.S. holdings of foreign debt securities were the result of net purchases during the intersurvey period. For equities, however, there was a significant upward adjustment in the value of these holdings.
As previously stated, the 1994 survey also measured significantly larger holdings of foreign securities by U.S. residents than the value-adjusted transactions data indicated.
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U.S. Foreign Portfolio Investment Compared with Foreign Portfolio Investment
in the United States
Both foreign portfolio investment in the United States and U.S. portfolio investment abroad are growing very rapidly; however, foreign portfolio investment in the United States still exceeds U.S. foreign investment by a significant margin (table 5).
Though some of the increase in these cross-border investment figures represents price appreciation, there was also significant new net investment. With respect to foreign investment in the United States, the foreign-held share of U.S. equities increased over the March 1994 to December 1997 period from 5.6 percent to 6.3 percent of the total amount outstanding; and the foreign-held share of U.S. Treasury securities increased over the same period from 19.4 percent to 38.4 percent of the total amount outstanding. Overall, foreigners increased their ownership of total U.S. securities outstanding from 8.9 percent to 12.0 percent during this period.
Table 5. U.S. Holdings of Foreign Long-Term Securities and Foreign
Holdings of U.S.
Long-Term Securities, 1984-97
Billions of dollars except as noted
|
U.S. holdings |
Average annual |
Foreign holdings |
Average annual |
1984 | 89 |
... |
268 |
... |
1989 | 314 |
28.7 |
847 |
25.9 |
1994 | 870 |
23.1 |
1,244 |
8.0 |
1997 | 1,755 |
25.4 |
2,806 |
31.2 |
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U.S. Investment in Foreign Equity Securities
Table 6 shows the leading countries for U.S. equity investment, along with the amount of this investment represented by foreign equities that trade in the United States.
Clearly the propensity for the shares of foreign companies to trade in U.S. securities markets varies widely by country. Canada, the Netherlands, and Mexico have led the way in this respect. Canada represents very much of a special case, however, because the U.S. and Canadian securities exchanges are so closely linked as to create almost a single, integrated market.
The list in table 6 consists of the same ten countries in which U.S. investors placed the most overall portfolio investment shown in table 2, though the order has changed. Canada is fifth on this list but second overall.
Table 6. U.S. Holdings of Foreign Equities, by Country of Investment,
Amount Held, and
Amount
Held in U.S.-Traded Securities, for the Top Ten Countries of Investment
and
the Rest of the World, as of December 31, 1997
Billions of dollars except as noted
|
|
|
Percentage |
|
|
United Kingdom | 218 | 61 | 28 | 59 | 2 |
Japan | 136 | 14 | 10 | 6 | 8 |
Netherlands | 107 | 59 | 55 | 53 | 6 |
France | 85 | 14 | 16 | 13 | * |
Canada | 71 | 50 | 71 | 0 | 50 |
Germany | 65 | 5 | 8 | 5 | 1 |
Switzerland | 62 | 7 | 11 | 7 | 0 |
Italy | 42 | 4 | 9 | 4 | 0 |
Sweden | 39 | 10 | 27 | 10 | 0 |
Mexico | 35 | 18 | 51 | 17 | 1 |
Rest of world | 348 | 117 | 33 | 75 | 41 |
Total | 1,208 | 358 | 30 | 249 | 110 |
* Less than 0.5.
1. ADR American Depositary Receipts.
- 11 -
U.S. Investment in Foreign Debt Securities
Table 7 shows the leading countries for U.S. investment in foreign debt securities, the amount of this investment represented by foreign debt securities issued in the United States, and the amount denominated in U.S. dollars.
Here we see a very different country list, with Argentina, Brazil, Australia, and international organizations appearing. Canada easily leads the list, in large measure because many Canadian debt securities are issued in the United States and are denominated in U.S. dollars. U.S. holdings of the debt of neighboring Canada and Mexico showed a much stronger tendency to be issued in the United States than was true for the other countries in this table.
U.S. investors showed a clear preference for U.S. dollar-denominated debt from the emerging- market countries. Approximately 88 percent of the debt issued by Mexico, Argentina, and Brazil combined was denominated in U.S. dollars, whereas only 41 percent of the debt held from the six developed countries in table 7 was denominated in U.S. dollars.
Table 7. U.S. Holdings of Foreign Long-Term Debt Securities, by Country,
Amount
Held, Amount Held Issued in the United States, and Amount
Denominated
in U.S. Dollars, for the Top Ten Countries of Investment
and
the Rest of the World, as of December 31, 1997
Billions of dollars
Country or entity |
|
|
Denominated in |
Canada | 107 |
68 |
61 |
United Kingdom | 54 |
7 |
27 |
Germany | 43 |
1 |
4 |
Japan | 30 |
1 |
4 |
Mexico | 29 |
11 |
26 |
Argentina | 26 |
8 |
22 |
Brazil | 20 |
2 |
18 |
Italy | 18 |
3 |
5 |
International organizations | 17 |
1 |
13 |
Australia | 16 |
2 |
8 |
Rest of world | 187 |
43 |
127 |
Total | 547 |
147 |
315 |
- 12 -
U.S. Investment in Foreign Securities: Total and Amounts Traded in the United States
Table 8 shows U.S. ownership by country of foreign securities, the amount and percentage of these securities that trade on U.S. exchanges, and the amounts of U.S.-traded equity and debt.
A substantial $506 billion, or 29 percent, of all U.S. investment in foreign securities occurred in U.S.-traded securities. For some countries, such as Canada and the Netherlands, the majority of U.S. investment was in U.S.-traded issues. For many other countries the percentage was very small.
Overall, 30 percent of U.S. holdings of foreign equities and 27 percent of U.S. holdings of foreign debt traded on U.S. exchanges.
Table 8. U.S. Holdings of Foreign Long-Term Securities, by Country,
Amount Held,
and Amount Traded in the United States, for the Top Ten Countries of
Investment and the Rest of the World, as of December 31, 1997
Billions of dollars except as noted
|
|
U.S.-Traded |
|||
Total |
Percentage |
Equity |
Debt |
||
United Kingdom | 272 |
68 |
25 |
61 |
7 |
Canada | 177 |
118 |
67 |
50 |
68 |
Japan | 167 |
15 |
9 |
14 |
1 |
Netherlands | 120 |
62 |
52 |
59 |
3 |
Germany | 108 |
6 |
6 |
5 |
1 |
France | 100 |
15 |
15 |
14 |
1 |
Mexico | 64 |
29 |
45 |
18 |
11 |
Switzerland | 63 |
7 |
11 |
7 |
0 |
Italy | 59 |
7 |
12 |
4 |
3 |
Sweden | 52 |
13 |
25 |
10 |
2 |
Rest of world | 573 |
166 |
29 |
117 |
50 |
Total | 1,755 |
506 |
29 |
358 |
147 |
- 13 -
U.S. Investment by Type of Market
Table 9 shows U.S. investment levels as of March 31, 1994, and December 31, 1997, in three different types of markets: developed countries, emerging-market countries, and Caribbean financial centers. All amounts are in billions of dollars.
Investment in the twenty-two developed countries accounted for the bulk of U.S. foreign investment at both dates, with 80 percent and 76 percent of the total in 1994 and 1997, respectively. The emerging markets increased their share of the total from 16 percent to 19 percent over this period. However, their share of total U.S. portfolio investment in equities decreased over the same period, from 16 percent of the total to 14 percent. As of the 1997 survey date, 73 percent of U.S. investment in developed countries was in equity securities, whereas only 50 percent of U.S. investment in emerging markets was in equities.
Securities issued through the Caribbean financial centers represent primarily activity of organizations in developed countries that issue in these countries for convenience or tax advantage.
Table 9. U.S. Holdings of Foreign Long-Term Securities in Developed
Countries,
Emerging Markets, and the Caribbean Financial Centers, as of
March 31, 1994, and December 31, 1997
Billions of dollars
1994 |
1997 |
|||||
Market |
Total |
Equity |
Debt |
Total |
Equity |
Debt |
Developed countries1 | 693 |
454 |
240 |
1,342 |
986 |
357 |
Emerging markets | 143 |
88 |
56 |
341 |
171 |
168 |
Caribbean financial centers2 | 34 |
25 |
8 |
72 |
51 |
22 |
Total | 870 |
567 |
304 |
1,755 |
1,208 |
547 |
1. Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Iceland, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
2. Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Netherlands Antilles, and Panama.
- 14 -
U.S. Investment by Continent
Table 10 shows a rather stable pattern of U.S. investment by continent between the two dates, with the only noteworthy change being the 8 percent increase in Europe's share over the period, largely at the expense of Asia's share. On both dates, 95 percent of total U.S. investment was accounted for by Europe, Asia, and the Americas. In Africa, the preponderance of U.S. investment was in South Africa, which attracted $13 billion of the total of $19 billion invested in the continent. The Australia and Oceania line is composed primarily of investment in Australia and New Zealand.
In Europe and Asia the preponderance of U.S. investment is in equities, whereas in the Americas, equity and debt are roughly equal.
Table 10. U.S. Holdings of Foreign Long-Term Securities, by
Continent, as of
March 31, 1994, and December 31, 1997
Billions of dollars except as noted
Continent or entity |
1997 |
1994 |
||||||
|
|
Debt |
Percentage |
|
|
|
Percentage |
|
Europe | 945 |
736 |
209 |
54 |
401 |
271 |
127 |
46 |
Americas1 | 431 |
209 |
222 |
25 |
233 |
121 |
112 |
27 |
Asia | 286 |
213 |
73 |
16 |
191 |
150 |
42 |
22 |
Africa | 19 |
13 |
6 |
1 |
6 |
4 |
2 |
1 |
Australia and Oceania |
|
|
|
|
|
|
|
|
International organizations |
|
|
|
|
|
|
|
|
Total | 1,755 |
1,208 |
547 |
100 |
870 |
567 |
304 |
100 |
1. North America, South America, Central America, and the Caribbean (including Bermuda).
- 15 -
U.S. Investment in Foreign Debt Securities by Currency of Denomination
Table 11 shows the currency of denomination for foreign debt securities held by U.S. residents. The amounts presented total only to $527 billion for 1997 because accurate information about the currency of the remaining $20 billion of U.S. foreign-held debt was not available.
Table 11. U.S. Holdings of Foreign Long-Term Debt Securities, by
Currency of
Denomination, as of March 31, 1994, and December 31, 1997
Billions of dollars except as noted
Currency |
1997 |
1994 |
||
Amount |
Percentage |
Amount |
Percentage |
|
U.S. dollar | 315 |
59.8 |
145 |
47.7 |
Canadian dollar | 42 |
8.0 |
21 |
5.9 |
German mark | 40 |
7.6 |
22 |
7.2 |
Japanese yen | 30 |
5.7 |
30 |
10.0 |
U.K. pound | 26 |
4.9 |
13 |
4.3 |
Italian lira | 13 |
2.5 |
13 |
4.5 |
Australian dollar | 8 |
1.5 |
6 |
2.1 |
French franc | 8 |
1.5 |
12 |
3.9 |
Danish krone | 6 |
1.1 |
7 |
2.3 |
Spanish peseta | 5 |
1.0 |
10 |
3.4 |
Other currencies | 34 |
6.5 |
25 |
6.7 |
Total | 527 |
100 |
304 |
100 |
In both surveys, U.S. investors showed a strong preference for foreign debt securities denominated in U.S. dollars, with the percentage increasing to 60 percent in 1997 from 48 percent in 1994. U.S. investment became increasingly concentrated in the currencies of the world's four largest economies (United States, United Kingdom, Japan, and Germany) and neighboring Canada, with more than 86 percent of the total denominated in these currencies as of year-end 1997. The total concentrated in the top ten currencies (all developed countries) rose from 92.3 percent in 1994 to 93.5 percent in 1997. In total, 97.5 percent of U.S. investment was denominated in the currencies of the twenty-one developed countries identified in table 9 (footnote 1) or in U.S. dollars.
- 16 -
Maturity Structure of U.S. Foreign Debt Holdings
Table 12 presents the maturity structure of U.S.-owned foreign-held debt securities. Data from the 1994 survey are not available at the same level of detail as that in the 1997 survey and are therefore presented only in five-year increments. Information about maturity dates was available for $504 billion of the $547 billion in foreign debt held by U.S. investors.
Table 12. U.S. Holdings of Foreign Long-Term Debt
Securities, by Remaining Term to
Maturity, as of December 31, 1997
Billions of dollars except as noted
|
1997 |
|
Remaining term to maturity (years) |
1997 |
|
||
|
|
|
|
||||
One or less | 25 |
5.0 |
9-10 | 47 |
9.3 |
||
1-2 | 37 |
7.3 |
5-10 | 181 |
36.0 |
34.0 |
|
2-3 | 33 |
6.6 |
10-15 | 29 |
5.8 |
||
3-4 | 42 |
8.3 |
15-20 | 32 |
6.3 |
||
4-5 | 52 |
10.4 |
10-20 | 61 |
12.1 |
14.7 |
|
5 or less | 190 |
37.6 |
36.1 |
20-25 | 21 |
4.2 |
|
5-6 | 34 |
6.6 |
25-30 | 39 |
7.6 |
||
6-7 | 34 |
6.7 |
20-30 | 59 |
11.8 |
12.2 |
|
7-8 | 30 |
5.9 |
More than 301 | 13 |
2.6 |
3.0 |
|
8-9 | 38 |
7.4 |
1. Excludes perpetual bonds.
The maturity structure of U.S.-owned foreign-debt holdings was quite similar at the two
survey dates, although the average maturity shortened slightly, with 74 percent of all
holdings in 1997 maturing in ten years or less compared with 70 percent in 1994.
Investment is distributed fairly evenly in securities that mature in ten years or less and
falls off sharply beyond ten years
- 17 -
U.S. Holdings of Foreign Private and Government Debt
In table 13, "government" refers to issues of the central government as well as those of local and provincial governments. The debt of government-sponsored corporations and other quasi- governmental organizations are included in the private column.
Table 13. U.S. Holdings of Foreign Long-Term Debt Securities, by
Country and
Sector of Issuer, as of December 31, 1997
Billions of dollars
Country |
Total |
Government |
Private |
Canada | 106 |
63 |
43 |
United Kingdom | 54 |
20 |
34 |
Germany | 43 |
34 |
9 |
Japan | 30 |
16 |
14 |
Mexico | 29 |
11 |
18 |
Argentina | 25 |
14 |
11 |
Brazil | 20 |
8 |
12 |
Italy | 18 |
16 |
2 |
Australia | 16 |
8 |
7 |
France | 15 |
7 |
8 |
Rest of world | 187 |
83 |
105 |
Total | 543 |
280 |
263 |
Note: The debt figures given above are less than the total amount of debt measured by the survey as only debt for which the issuer sector was known is included in this table.
U.S. investors held approximately equal amounts of foreign private and government debt issues. For the leading countries shown in table 13, the percentages did not vary significantly by region, and both developed and emerging countries showed the same general distribution. Notable exceptions were Italy and Germany, where U.S. investors held primarily government debt securities. In 1994, U.S. investors showed a stronger preference for foreign government securities, holding 62 percent of their foreign debt in that form, compared with 52 percent in 1997.
- 18 -
U.S. Ownership of Foreign Securities by Industry
Unfortunately, the survey had difficulty obtaining information about the industry classification of many foreign securities. Overall, information was available for only 60 percent of the total value of U.S.-held foreign securities. Thus, the classification presented in table 14 may well present a somewhat misleading picture, as the securities that attracted the most U.S. investment were researched with greater effort than those attracting less attention. Some industries have large, well-known companies that attract a great deal of investment and are correspondingly easy to classify. Other industries, characterized by many smaller, less well known firms, received less attention and were more likely to remain uncategorized.
Industry category information was available for 57 percent of equity securities. Of these categorized equities, more than 40 percent of the total was concentrated in four areas: oil and gas extraction ($86 billion), wired and cellular communications ($76 billion), depository institutions (primarily banks, $65 billion), and pharmaceuticals and medicines ($59 billion).
Approximately 69 percent of the total U.S.-held debt securities were categorized by industry. Of these, almost 80 percent were easily classified issues of governmental organizations. The vast majority of the government debt was issued by foreign central governments. Almost all of the unclassified debt was issued by the foreign private sector.
- 19 -
Table 14. U.S. Holdings of Foreign Long-Term Securities, by
Industry,
as of December 31, 1997
Billions of dollars
Industry |
Total |
Equity |
Debt |
Manufacturing | 238 |
226 |
12 |
Aerospace | 2 |
2 |
* |
Beverages | 15 |
14 |
1 |
Cars and trucks | 19 |
18 |
1 |
Chemicals | 17 |
16 |
1 |
Clothing, textiles, and shoes | 4 |
4 |
* |
Computers and related products | 4 |
4 |
* |
Construction equipment | 5 |
5 |
* |
Electrical and electrical equipment except computers | 39 |
37 |
2 |
Food and kindred products | 14 |
14 |
* |
Industrial machinery | 4 |
4 |
* |
Lumber and wood products | 1 |
* |
1 |
Paper and allied products | 8 |
7 |
1 |
Petroleum refining and related industries | 7 |
5 |
2 |
Pharmaceuticals and medicines | 59 |
59 |
* |
Printing and publishing equipment | 1 |
1 |
* |
Rubber and plastic products | 3 |
2 |
* |
Steel | 5 |
5 |
1 |
Tobacco products | 6 |
6 |
* |
Miscellaneous manufacturing | 25 |
23 |
2 |
Transportation and utilities |
|
|
|
Air transportation | 4 |
4 |
* |
Ground transportation | 1 |
1 |
* |
Rail transportation | 4 |
3 |
1 |
Water transportation | 4 |
4 |
1 |
Electrical power generation and transmission | 31 |
19 |
12 |
Oil and natural gas distribution | 11 |
8 |
3 |
Other transportation and utilities | 4 |
3 |
1 |
Financial services |
|
|
|
Depository institutions (banks, etc.) | 90 |
65 |
25 |
Nondepository credit institutions | 11 |
7 |
4 |
Mutual funds, investment trusts, etc. | 2 |
2 |
0 |
Securities and commodities brokers and dealers | 2 |
2 |
* |
Insurance companies | 31 |
30 |
1 |
Other financial services | 4 |
3 |
1 |
- 20 -
Industry |
Total |
Equity |
Debt |
Agriculture and mining | 102 |
96 |
5 |
Agriculture, forestry, and fishing | * | * | * |
Coal mining | * | * | * |
Oil and gas extraction | 90 |
86 |
4 |
Metal mining | 7 |
6 |
1 |
Nonmetallic minerals, except oil | 5 |
4 |
* |
Communications and information processing |
|
|
|
Computer software development | 7 |
7 |
0 |
Information and data processing services | 4 |
4 |
1 |
Motion picture and sound recording industry | 1 |
1 |
* |
Printing and publishing | 1 |
11 |
* |
Television and radio | 12 |
8 |
3 |
Wired and cellular communications | 80 |
76 |
4 |
Satellite communications | 10 |
9 |
1 |
Other communications and information processing | 6 |
6 |
* |
Trade |
|
|
|
Wholesale trade | 1 |
1 |
* |
Retail trade (department stores, grocery stores, etc.) | 17 |
16 |
* |
Government |
|
|
|
Federal | 227 |
0 |
227 |
Local | 45 |
0 |
45 |
Government-sponsored enterprises | 5 |
0 |
5 |
International organizations | 18 |
0 |
17 |
Miscellaneous |
|
|
|
Multi-industry conglomerates | 41 |
38 |
2 |
Construction | 7 |
6 |
1 |
Health services | 2 |
2 |
0 |
Hotels, motels, restaurants | 3 |
3 |
* |
Professional and technical services | 10 |
10 |
* |
Real estate companies | 7 |
7 |
1 |
Research | 1 |
1 |
0 |
Other | 6 |
5 |
1 |
Unknown | 696 |
525 |
172 |
* Less than 0.5.
- 21 -
Chapter 2. U. S. Holdings of Foreign Long-Term Securities
as
of December 31, 1999
In this chapter, data from the 1997 survey have been combined with transactions data collected by the Treasury and Commerce Departments. These data have been adjusted for price and exchange rate changes to present the estimated level of U.S. portfolio investment abroad as of year-end 1999. The transactions data are available only by country, split into equity and debt; thus, many of the tables presented in the preceding chapter cannot be replicated as of year-end 1999.
Table 15 shows the overall growth of U.S.-owned foreign long-term securities as well as the change in the levels of U.S.-owned equity and debt securities.
The value of U.S.-owned foreign equities has increased significantly over the two-year period, while the value of U.S.-owned foreign debt has decreased. However, as can be seen in the table, the increase was not due to transactions by U.S. residents so much as to valuation changes in these instruments. This continues the trend experienced during the period between the March 1994 survey and the December 1997 survey, when the valuation adjustments to foreign-held equities increased strongly while the valuation adjustments to foreign debt securities decreased (see table 4).
Table 15. U.S. Holdings of Foreign Long-Term Securities, Net
Transactions, and
Changes in Percentage and Valuation, by Type of Security,
as of December 31, 1997 and 1999
Billions of dollars except as noted
|
|
1997-99 |
|||
Percentage |
Net |
Valuation |
|||
Total | 1,755 |
2,456 |
40 |
199 |
502 |
Equity | 1,208 |
1,925 |
59 |
176 |
541 |
Debt | 547 |
531 |
-3 |
23 |
-39 |
1. The estimated level of U.S. holdings of foreign
securities as of year-end 1999 was calculated by the
Commerce Departments Bureau of Economic
Analysis by adding price-adjusted and exchange rate-adjusted
transactions data and valuation adjustments to the
1997 asset survey results.
- 22 -
Table 16. U.S. Holdings of Foreign Securities, as of December 31, 1997 and 1999
Billions of dollars
|
|
|
1997-99 |
||
|
|
Price and |
|||
United Kingdom | 394 |
272 |
122 |
72 |
50 |
Japan | 295 |
167 |
128 |
46 |
82 |
Canada | 194 |
177 |
17 |
2 |
14 |
France | 178 |
100 |
78 |
-2 |
80 |
Germany | 167 |
108 |
59 |
32 |
27 |
Netherlands | 140 |
120 |
20 |
-8 |
28 |
Sweden | 90 |
52 |
38 |
* |
38 |
Mexico | 72 |
64 |
8 |
6 |
2 |
Italy | 66 |
59 |
7 |
-6 |
13 |
Switzerland | 65 |
63 |
2 |
-7 |
9 |
Rest of world | 795 |
573 |
222 |
64 |
159 |
Total | 2,456 |
1,755 |
701 |
199 |
502 |
* Less than 0.5.
The United Kingdom easily maintained its position as the country of choice for U.S. investors, while Japan moved past Canada and into second place by a wide margin (table 16). France moved from sixth to fourth position, and Sweden moved from tenth to seventh. Both France and Sweden moved up the list primarily because of the very strong performances of their equity exchanges. In fact, U.S. investors were net sellers of French securities during the period.
Only the United Kingdom, Japan, and Germany attracted significant amounts of net investment during the period. The new investment in Japan resulted from increased net portfolio purchases of Japanese equities. In the cases of the United Kingdom and Germany, much of the increase was the result of stock swaps following purchases of U.S. firms by U.K. and German corporations.
- 23 -
Table 17. U. S. Holdings of Foreign Equity Securities, as of December 31, 1997 and 1999
Billions of dollars
|
|
|
1997-99 |
||
|
|
Price and |
|||
United Kingdom | 334 |
218 |
116 |
61 |
55 |
Japan | 271 |
136 |
135 |
50 |
85 |
France | 165 |
85 |
80 |
-2 |
82 |
Netherlands | 128 |
107 |
21 |
-2 |
23 |
Germany | 125 |
65 |
60 |
25 |
35 |
Canada | 95 |
71 |
24 |
-3 |
27 |
Sweden | 78 |
39 |
39 |
1 |
38 |
Switzerland | 64 |
62 |
2 |
-6 |
8 |
Italy | 53 |
42 |
11 |
-4 |
15 |
Hong Kong | 39 |
28 |
11 |
-1 |
12 |
Mexico | 38 |
35 |
3 |
* |
3 |
Spain | 35 |
25 |
10 |
-3 |
13 |
Rest of world | 503 |
295 |
207 |
60 |
148 |
Total | 1,925 |
1,208 |
717 |
176 |
541 |
* Less than 0.5.
U.S. holdings of foreign equities increased almost 60 percent during the two-year period, with more than 75 percent of the gain attributable to the rising value of foreign equities rather than to net acquisitions. Both the United Kingdom and Japan experienced net increases in U.S. holdings and significant gains in the value of existing securities held. On the other hand, France and Sweden attracted little or no net equity purchases, but the value of U.S. equity holdings in these countries almost doubled because of valuation gains (table 17).
- 24 -
Table 18. U.S. Holdings of Foreign Long-Term Debt Securities,
as of December 31, 1997 and 1999
Billions of dollars
|
|
|
1997-99 |
||
|
|
Price and |
|||
Canada | 99 |
107 |
-8 |
5 |
-13 |
United Kingdom | 60 |
54 |
6 |
11 |
-5 |
Germany | 42 |
43 |
-1 |
7 |
-8 |
Mexico | 34 |
29 |
5 |
5 |
* |
Argentina | 27 |
26 |
1 |
1 |
* |
Japan | 24 |
30 |
-6 |
-4 |
-2 |
Brazil | 21 |
20 |
* | * |
* |
International organizations | 17 |
17 |
* | * |
* |
Australia | 15 |
16 |
-1 |
1 |
-2 |
Italy | 13 |
18 |
-5 |
-2 |
-3 |
Rest of world | 179 |
187 |
-7 |
-1 |
-6 |
Total | 531 |
547 |
-16 |
23 |
-39 |
* Less than 0.5.
Valuation changes depressed the level of U.S. holdings of foreign debt in almost all countries (table 18). This was due to both a strong U.S. dollar and generally rising foreign interest rates. Only four countries (United Kingdom, Mexico, Argentina, and Brazil) showed a net increase on a valuation-adjusted basis over the period. While Canada experienced the largest absolute decline, Italy and Japan had the largest percentage decreases.
The rising value of foreign equities combined with the falling value of foreign debt securities was largely responsible for the rise of the equity-to-debt ratio of U.S. foreign holdings from 69 percent at year-end 1997 to more than 78 percent at year-end 1999. The percentage of equities in U.S. investment in Japan rose from 82 percent to 92 percent over this period.
- 25 -
Chapter 3. Survey Methodology
This survey attempted to be as comprehensive as possible while also being cost effective and imposing a minimum burden on survey respondents. To accomplish these goals, the major sources of data on U.S. holdings of foreign long-term securities (large custodians and institutional investors) were identified and universally included in the survey. Less likely sources (smaller custodians and institutional investors) were sampled. U.S. private individuals were not directly surveyed. However, most holdings of private individuals were captured by the survey, as these investments are typically funneled through U.S. mutual funds or are entrusted to U.S.-resident custodians for safekeeping. Almost all of the survey data were obtained from the major reporters universally covered, with less than 1 percent obtained from the smaller sampled reporters.
Data for the survey were collected at the individual security level. This was done primarily to ensure accuracy, as experience has shown that data quality is frequently problematic in portfolio investment surveys, whether they measure U.S. investment abroad or foreign investment in the United States. Collecting information at the individual security level also allows for more detailed and comprehensive data analysis.
The approach taken by this survey was to collect data primarily from custodians. U.S. investors who entrusted the safekeeping of their foreign securities to U.S. custodians reported only the name(s) of their custodian(s) and the amount(s) entrusted. However, U.S. investors who entrusted foreign securities directly to foreign custodians or who kept custody of foreign securities themselves were required to submit detailed reports on their foreign holdings. Only custodians or end investors with at least $20 million in foreign securities owned or held in custody were required to report in the survey.
In total, 1,209 firms reported data in this survey, of which 346 reported actual data on foreign holdings and 863 reported the names and amounts that they had entrusted to U.S. custodians. More than 97 percent of the data collected were reported by U.S. custodians, indicating that it is uncommon for U.S. institutional investors to entrust the safekeeping of their foreign securities directly to foreign custodians or to engage in self-custody. Banks were the leading custodians, with 80 percent of the total reported, while broker-dealers reported the other 17 percent held by custodians. In total, 232 different U.S.-resident banks reported custody holdings of foreign securities, of which 79 were branches or subsidiaries of foreign banks. However, these foreign branches and subsidiaries accounted for less than 1 percent of the total custody holdings reported by banks.
A relatively small number of firms dominated the foreign custody business at the end of 1997, with the ten largest respondents reporting 75 percent of the total submitted on the survey. Three institutions reported holdings in excess of $100 billion in foreign securities held for U.S. residents, and sixteen reported at least $10 billion.
- 26 -
In some cases, foreign securities are entrusted to U.S. custodians who do not actually engage in the safekeeping of foreign securities. These custodians, in turn, entrust the securities to other U.S.-resident custodians. To avoid double-counting in these instances, the custodians who passed the foreign securities to other U.S.-resident custodians were instructed to report only the name(s) and amount(s) entrusted rather than report in detail.
Collecting data at the individual security level results in amassing a great deal of data. More than 450,000 records were submitted by survey respondents. Of these records, 370,000 concerned equity securities, and 80,000 debt securities. U.S. investors owned in total at least $1 billion of 159 different foreign securities and held in aggregate more than $10 billion in four foreign securities. The foreign security with the greatest level of U.S. ownership attracted $32 billion in total U.S. investment.
This survey was conducted under the authority of the International Investment and Trade in Services Survey Act (22 U.S.C. 3101 et seq.). Reporting on the survey was mandatory, and penalties could have been imposed for noncompliance. Data collected for holdings as of December 31, 1997, were to be reported to the Treasury Department by March 31, 1998. A copy of the survey forms and instructions are found in appendix B.
Problems Encountered
The data received were subjected to extensive analysis and editing before they were accepted as accurate. Frequent, significant problems were encountered with the data. The most common problems involved the currency of denomination for debt securities, unpriced or questionably priced securities, and the submission of data on ownership of instruments other than foreign long-term securities.
All data were requested to be submitted converted into U.S. dollars at the prevailing exchange rates on December 31, 1997. However, many respondents reported some or all of their positions in foreign currency units. In some cases, this problem was simple to detect, as holdings denominated in Italian lire (exchange rate of 1,768 to 1) or Japanese yen (130 to 1) were relatively obvious. However, in some cases there were no data submitted in currencies with a very high ratio of U.S. dollar to foreign currency unit; or some records submitted were converted to U.S. dollars, and others were in foreign currency units, presenting a greater challenge to the survey staff.
Many securities were submitted without prices. In some cases, this presented no problem because an extensive database of foreign securities had been created from commercial sources and the relevant price could frequently be determined from this database or from data submitted by other survey respondents. But there remained many unpriced securities, and a great deal of time and effort were involved in attempting to determine the price of these securities.
In other cases, securities were reported by different respondents with significantly different prices. These discrepancies had to be investigated and the best available price determined.
- 27 -
Many of the records submitted did not represent foreign long-term securities. Short-term securities, loans, and U.S. securities were also frequently reported. A total of 7,000 submitted records, with a value of $52 billion, were excluded from the survey.
Another complication was that the same foreign security could be reported with different security identification numbers by different survey respondents because many securities trade on exchanges in several countries. One respondent might thus report a security using the U.K. security coding system (SEDOL), while another might use the French security identification code (SICOVAM). To address this problem, a cross-reference database was established that contained all of the codes that a given security used on different exchanges, thus enabling the survey staff to link these records. This database aided in pricing unpriced securities and in determining the best price for a security when multiple prices existed.
Accuracy of the Survey
There is, of course, no way to know with certainty how accurate such a survey is unless one already knows what the final figures should be, in which case conducting the survey has no point. However, the accuracy of the survey can be inferred by examining the survey technique for any inherent biases, evaluating the compiled data to see if they seem reasonable, and comparing the data to any external or internal sources of information that may be available as a point of reference.
The survey as structured has two built-in biases, both of which would tend to cause an undercount. The first, as mentioned previously, is that foreign securities directly owned by private U.S. individuals or by small U.S. institutions (below the size that was sampled) that are not entrusted to U.S.-based custodians were not measured by the survey. This would occur when, for example, a U.S. individual buys Canadian equities on a Canadian securities exchange and entrusts the safekeeping of these securities directly to a Canadian bank. At present, we have no way of knowing the size of such activity but assume that it is relatively small. The United States is part of a group of countries that is exploring ways to measure these holdings. The approach would be for Canadian authorities to measure the holdings of Canadian securities by U.S. individuals and to exchange this information with their U.S. counterparts for similar data on Canadian holdings of U.S. securities by Canadian individuals entrusted to U.S. custodians.
The other downward bias results from the fact that data that should not have been reported on the survey (loans, short-term securities, U.S. securities, etc.) were excluded from the survey results, whereas any data that were not reported on the survey that should have been were typically unknown to the survey staff and thus not included. The size of this effect is unknown. However, as mentioned above, records with a combined market value of $52 billion (divided equally between equity and debt) were excluded from the survey results because the submitted data did not represent foreign long-term securities.
- 28 -
From a reasonableness perspective, the survey data were reassuring. U.S. investment by country generally increases in step with the size of a country's financial markets. At the individual security level, the largest amounts of investment are concentrated in securities with the greatest market capitalization. Total U.S. investment never reached an excessive share of the total market capitalization of a given security for the major securities on which this check was made. The custodians who were expected to report the highest levels of U.S. foreign investment did so, and the country distribution and security types held followed expected patterns. The ratio of equity holdings to debt holdings was as expected based on the previous survey and the monthly transactions data.
As discussed in the introduction, the overall level of U.S. holdings of foreign long-term securities measured by this survey exceeded by 21 percent the level that is derived by adding price and exchange rate adjusted transactions data to the level measured by the 1994 survey. However, this result was not unexpected. The prior survey measured a level 60 percent higher than the previously estimated position constructed as mentioned above and as discussed in the introduction.
The survey results also compare well with other available data sources. U.S. investors who entrusted their securities to U.S. custodians reported the name and amount entrusted to each custodian. These figures were totaled and compared with amounts reported by the custodians, and the results indicated that the amounts reported by the custodians were reasonable. The survey results were also compared with data reported to the Securities and Exchange Commission (SEC). Large institutional investment managers are required to report to the SEC their holdings of U.S.-traded equity securities. These securities can trade either as ADRs or non-ADRs. The reports were aggregated to create total U.S. holdings of ADRs and non-ADRs for each country. When compared with survey data, the results were reassuring. For ADRs, the survey results tended to be slightly higher than the SEC data, which is to be expected, since most but not all U.S. holdings would probably be reported by these institutions. In total, the survey reported much larger holdings of foreign equities than were reported to the SEC. However, again this is to be expected because many foreign equities do not trade on U.S. exchanges.
- 29 -
Appendix A. Statistical Tables
A.1. U.S. Holdings of Foreign Long-Term Debt Securities, by
Sector of Issuer,
as of December 31, 1997
Millions of dollars
Country or entity |
Total |
Government | Private |
Country or entity |
Total |
Government |
Private |
Albania | 32 | 7 | 25 | Costa Rica | 165 | 41 | 124 |
Andorra | 9 | 1 | 8 | Cote d'Ivoire | 456 | 26 | 430 |
Argentina | 25,492 | 14,112 | 11,380 | Croatia | 370 | 205 | 165 |
Aruba | 11 | 0 | 11 | Cyprus | 202 | 72 | 129 |
Australia | 15,770 | 8,397 | 7,373 | Czech Republic | 45 | 17 | 29 |
Austria | 1,954 | 804 | 1,150 | Denmark | 7,804 | 5,886 | 1,918 |
Bahamas | 342 | 64 | 279 | Dominican Republic |
87 | 25 | 62 |
Barbados | 16 | 4 | 12 | Ecuador | 1,934 | 1,366 | 569 |
Belarus | 2 | 0 | 2 | Egypt | 69 | 0 | 69 |
Belgium | 3,034 | 2,265 | 769 | El Salvador | 11 | 1 | 10 |
Belize | 5 | 0 | 5 | Estonia | 10 | 0 | 10 |
Bermuda | 3,953 | 68 | 3,885 | Finland | 5,894 | 2,563 | 3,331 |
Bolivia | 12 | 0 | 12 | France | 14,623 | 6,907 | 7,716 |
Bosnia and Herzegovina |
3 | 0 | 3 | Gambia | 32 | 0 | 32 |
Botswana | 17 | 7 | 10 | Germany | 43,155 | 34,058 | 9,097 |
Brazil | 20,171 | 8,189 | 11,982 | Greece | 1,228 | 815 | 413 |
British Virgin Islands |
440 | 8 | 432 | Guadeloupe | 1 | 0 | 1 |
Bulgaria | 1,309 | 1,041 | 268 | Guatemala | 190 | 147 | 43 |
Burma | 139 | 0 | 139 | Guernsey | 72 | 0 | 72 |
Cameroon | 4 | 0 | 4 | Honduras | 17 | 12 | 5 |
Canada | 105,939 | 62,832 | 43,107 | Hong Kong | 3,489 | 292 | 3,197 |
Cayman Islands | 13,561 | 208 | 13,353 | Hungary | 1,363 | 1,152 | 211 |
Chile | 3,535 | 202 | 3,333 | Iceland | 306 | 81 | 225 |
China | 3,141 | 1,534 | 1,607 | India | 1,962 | 243 | 1,719 |
Colombia | 3,421 | 1,337 | 2,084 | Indonesia | 1,857 | 259 | 1,598 |
Comoros | 19 | 10 | 9 | International organizations |
16,975 | 16,975 | 0 |
Congo (Brazzaville) | 13 | 2 | 11 | Ireland | 3,483 | 1,818 | 1,665 |
- 30 -
A.1. U.S. Holdings of Foreign Long-Term Debt Securities, by
Sector of Issuer,
as of December 31, 1997 (Continued)
Millions of dollars
Country or entity |
Total |
Government |
Private |
Country or entity |
Total |
Government |
Private |
Israel | 5,262 | 3,563 | 1,699 | Pakistan | 341 | 219 | 122 |
Italy | 17,514 | 15,652 | 1,862 | Palau | 1 | 0 | 1 |
Jamaica | 326 | 236 | 91 | Panama | 3,002 | 1,848 | 1,154 |
Japan | 30,134 | 16,458 | 13,676 | Papua New Guinea | 9 | 9 | 0 |
Jersey | 37 | 0 | 37 | Paraguay | 81 | 0 | 81 |
Jordan | 178 | 126 | 52 | Peru | 1,203 | 673 | 530 |
Kazakhstan | 120 | 63 | 57 | Philippines | 4,442 | 1,217 | 3,225 |
Kenya | 17 | 14 | 3 | Poland | 2,877 | 2,448 | 429 |
Kiribati | 24 | 0 | 24 | Portugal | 1,240 | 1,055 | 185 |
Korea (South) | 10,466 | 911 | 9,555 | Romania | 206 | 89 | 117 |
Lebanon | 680 | 438 | 243 | Russia | 3,659 | 1,843 | 1,816 |
Lesotho | 3 | 3 | 0 | Sao Tome and Principe |
33 | 0 | 33 |
Liberia | 476 | 44 | 432 | Senegal | 3 | 0 | 3 |
Lithuania | 26 | 11 | 15 | Serbia and Montenegro |
13 | 1 | 13 |
Luxembourg | 2,944 | 355 | 2,589 | Seychelles | 46 | 0 | 46 |
Macedonia | 20 | 6 | 14 | Singapore | 549 | 62 | 487 |
Madagascar | 1 | 0 | 1 | Slovakia | 97 | 2 | 95 |
Malaysia | 4,328 | 161 | 4,167 | Slovenia | 168 | 70 | 98 |
Malta | 148 | 0 | 148 | Somalia | 3 | 0 | 3 |
Marshall Islands | 35 | 9 | 26 | South Africa | 2,604 | 1,982 | 622 |
Mauritius | 666 | 4 | 662 | Spain | 6,885 | 5,759 | 1,126 |
Mexico | 28,567 | 10,916 | 17,651 | Sri Lanka | 60 | 9 | 51 |
Moldova | 39 | 13 | 27 | Sweden | 12,993 | 7,611 | 5,382 |
Morocco | 344 | 163 | 181 | Switzerland | 1,243 | 82 | 1,161 |
Namibia | 2 | 0 | 2 | Taiwan | 1,288 | 31 | 1,257 |
Netherlands | 13,057 | 3,310 | 9,747 | Thailand | 3,465 | 801 | 2,664 |
Netherlands Antilles |
1,193 | 22 | 1,171 | Tokelau Islands | 20 | 20 | 0 |
New Zealand | 3,468 | 2,602 | 866 | Tonga | 50 | 0 | 50 |
Nicaragua | 76 | 3 | 73 | Trinidad and Tobago |
463 | 143 | 320 |
Norway | 4,736 | 455 | 4,281 | Tunisia | 279 | 27 | 252 |
- 31 -
A.1. U.S. Holdings of Foreign Long-Term Debt Securities, by
Sector of Issuer,
as of December 31, 1997 (Continued)
Millions of dollars
Country or entity |
Total |
Government |
Private |
Country or entity |
Total |
Government |
Private |
Turkey | 1,005 | 640 | 365 | Vietnam | 37 | 24 | 14 |
Turks and Caicos Islands |
35 | 0 | 35 | Zambia | 2 | 0 | 2 |
Ukraine | 29 | 2 | 27 | Zimbabwe | 36 | 24 | 13 |
United Kingdom | 53,788 | 19,563 | 34,225 | African oil exporters1 |
792 | 288 | 504 |
Uruguay | 598 | 301 | 297 | Middle East oil exporters2 |
433 | 44 | 389 |
Venezuela | 5,815 | 3,758 | 2,057 | Total | 542,924 | 280,236 | 262,699 |
Note: The figures are less than the total amount of debt measured by the survey because only debt for which the sector of the issuer was known is included in the table.
1. Algeria, Gabon, Libya, and Nigeria.
2. Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
- 32 -
A.2. U.S. Holdings of Foreign Long-Term Securities, by
Total Held, Amount Traded
in U.S. Markets, and ADRs, as of
December 31, 1997
Millions of dollars
|
|
U.S.- |
|
|
|
U.S.- |
|
Albania | 32 | 0 | 0 | Costa Rica | 165 | 0 | 0 |
Andorra | 14 | 0 | 0 | Cote d'Ivoire | 459 | 0 | 0 |
Argentina | 38,567 | 17,728 | 9,547 | Croatia | 496 | 131 | 44 |
Aruba | 22 | 0 | 0 | Cuba | 2 | 0 | 0 |
Australia | 46,999 | 8,776 | 6,157 | Cyprus | 322 | 0 | 0 |
Austria | 5,662 | 772 | 86 | Czech Republic | 809 | 2 | 2 |
Bahamas | 911 | 206 | 0 | Denmark | 16,758 | 2,227 | 1,946 |
Bangladesh | 7 | 0 | 0 | Dominica | 2 | 0 | 0 |
Barbados | 17 | 1 | 1 | Dominican Republic | 87 | 24 | 0 |
Belarus | 3 | 0 | 0 | Ecuador | 2,032 | 14 | 0 |
Belgium | 9,169 | 528 | 98 | Egypt | 832 | 58 | 3 |
Belize | 34 | 24 | 0 | El Salvador | 50 | 42 | 39 |
Bermuda | 26,607 | 16,265 | 335 | Estonia | 27 | 0 | 0 |
Bolivia | 12 | 0 | 0 | Finland | 20,715 | 7,282 | 5,280 |
Bosnia and Herzegovina |
3 | 0 | 0 | France | 99,752 | 14,840 | 13,165 |
Botswana | 148 | 0 | 0 | Gambia | 32 | 0 | 0 |
Brazil | 51,656 | 12,693 | 10,973 | Germany | 108,414 | 6,103 | 4,462 |
British Virgin Islands |
1,139 | 55 | 0 | Ghana | 358 | 265 | 265 |
Bulgaria | 1,310 | 0 | 0 | Greece | 2,741 | 67 | 3 |
Burma | 142 | 0 | 0 | Guadeloupe | 1 | 0 | 0 |
Cambodia | 1 | 0 | 0 | Guatemala | 193 | 0 | 0 |
Cameroon | 4 | 0 | 0 | Guernsey | 450 | 0 | 0 |
Canada | 177,473 | 118,036 | 40 | Honduras | 17 | 0 | 0 |
Cayman Islands | 19,247 | 3,748 | 11 | Hong Kong | 31,628 | 3,746 | 1,954 |
Chile | 8,127 | 5,781 | 3,850 | Hungary | 4,846 | 768 | 370 |
China | 5,434 | 2,524 | 828 | Iceland | 309 | 69 | 0 |
Colombia | 4,163 | 2,004 | 231 | India | 8,138 | 591 | 397 |
Comoros | 21 | 2 | 0 | Indonesia | 4,344 | 979 | 424 |
Congo (Brazzaville) | 13 | 0 | 0 | International organizations |
16,975 | 978 | 0 |
Cook Islands | 1 | 0 | 0 | Ireland | 17,609 | 10,269 | 9,281 |
- 33 -
A.2. U.S. Holdings of Foreign Long-Term Securities, by
Total Held, Amount Traded
in U.S. Markets, and ADRs, as of
December 31, 1997 (Continued)
Millions of dollars
Country or entity |
|
U.S.- |
|
|
|
U.S.- |
|
Isle of Man | 9 | 0 | 0 | Nauru | 1 | 0 | 0 |
Israel | 12,298 | 7,010 | 2,099 | Netherlands | 120,150 | 61,617 | 53,147 |
Italy | 59,171 | 6,585 | 3,751 | Netherlands Antilles | 17,002 | 13,711 | 0 |
Jamaica | 329 | 10 | 0 | New Caledonia | 1 | 0 | 0 |
Japan | 166,758 | 14,889 | 6,166 | New Zealand | 8,817 | 990 | 591 |
Jersey | 1,555 | 1 | 0 | Nicaragua | 76 | 0 | 0 |
Jordan | 218 | 9 | 0 | Norway | 14,267 | 3,657 | 1,855 |
Kazakhstan | 121 | 6 | 1 | Pakistan | 1,521 | 3 | 0 |
Kenya | 36 | 0 | 0 | Palau | 1 | 0 | 0 |
Kiribati | 24 | 0 | 0 | Panama | 6,594 | 2,066 | 0 |
Korea (South) | 15,262 | 7,295 | 885 | Papua New Guinea | 174 | 12 | 0 |
Latvia | 4 | 0 | 0 | Paraguay | 81 | 5 | 0 |
Lebanon | 814 | 2 | 2 | Peru | 3,545 | 1,626 | 1,265 |
Lesotho | 73 | 6 | 6 | Philippines | 7,326 | 1,826 | 740 |
Liberia | 1,400 | 1,191 | 0 | Poland | 4,495 | 230 | 6 |
Liechtenstein | 5 | 0 | 0 | Portugal | 8,233 | 2,204 | 1,179 |
Lithuania | 41 | 14 | 1 | Romania | 211 | 5 | 0 |
Luxembourg | 8,289 | 2,407 | 869 | Russia | 12,153 | 4,337 | 3,448 |
Macedonia | 20 | 0 | 0 | Sao Tome and Principe |
33 | 0 | 0 |
Madagascar | 2 | 0 | 0 | Senegal | 7 | 3 | 0 |
Malaysia | 9,077 | 2,542 | 171 | Serbia and Montenegro |
13 | 0 | 0 |
Malta | 148 | 0 | 0 | Seychelles | 54 | 6 | 6 |
Marshall Islands | 35 | 0 | 0 | Sierra Leone | 1 | 0 | 0 |
Mauritius | 730 | 372 | 0 | Singapore | 10,735 | 1,563 | 589 |
Mexico | 63,752 | 28,669 | 16,568 | Slovakia | 184 | 2 | 2 |
Moldova | 39 | 0 | 0 | Slovenia | 224 | 1 | 1 |
Morocco | 561 | 0 | 0 | Somalia | 6 | 1 | 1 |
Namibia | 132 | 0 | 0 | South Africa | 12,541 | 3,045 | 1,986 |
- 34 -
A.2. U.S. Holdings of Foreign Long-Term Securities, by
Total Held, Amount Traded
in U.S. Markets, and ADRs, as of
December 31, 1997 (Continued)
Millions of dollars
|
|
U.S.- |
|
|
|
U.S.- |
|
Spain | 32,146 | 6,163 | 5,773 | Turks and Caicos Islands |
420 | 340 | 0 |
Sri Lanka | 193 | 0 | 0 | Uganda | 1 | 0 | 0 |
Suriname | 46 | 46 | 46 | Ukraine | 91 | 0 | 0 |
Swaziland | 1 | 0 | 0 | United Kingdom | 271,680 | 67,842 | 58,650 |
Sweden | 51,886 | 12,559 | 10,199 | Unknown country | 781 | 36 | 5 |
Switzerland | 63,141 | 7,259 | 7,010 | Uruguay | 612 | 162 | 0 |
Taiwan | 6,227 | 448 | 307 | Venezuela | 7,827 | 3,048 | 1,354 |
Thailand | 5,623 | 1,275 | 4 | Vietnam | 37 | 0 | 0 |
Tokelau Islands | 20 | 0 | 0 | Zambia | 9 | 0 | 0 |
Tonga | 50 | 0 | 0 | Zimbabwe | 169 | 0 | 0 |
Trinidad and Tobago | 464 | 0 | 0 | African oil exporters1 | 843 | 21 | 20 |
Tunisia | 280 | 195 | 0 | Middle East oil exporters2 |
515 | 337 | 0 |
Turkey | 7,011 | 398 | 25 | Total | 1,755,014 | 505,577 | 248,547 |
Note. ADRs are American Depositary Receipts.
1. Algeria, Gabon, Libya, and Nigeria.
2. Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
- 35 -
A.3. U.S. Holdings of Foreign Equity Securities, by Type
of Security,
as of December 31, 1997
Millions of dollars
Country |
|
Common |
Preferred |
Mutual |
|
Andorra | 5 | 5 | 0 | 0 | 0 |
Argentina | 12,892 | 12,812 | 66 | 11 | 3 |
Aruba | 11 | 11 | 0 | 0 | 0 |
Australia | 31,120 | 28,104 | 2,729 | 162 | 125 |
Austria | 3,707 | 3,460 | 245 | 2 | 1 |
Bahamas | 568 | 513 | 0 | 56 | 0 |
Bangladesh | 7 | 4 | 3 | 0 | 0 |
Barbados | 1 | 1 | 0 | 0 | 0 |
Belarus | 1 | 1 | 0 | 0 | 0 |
Belgium | 6,099 | 6,089 | 4 | 1 | 5 |
Belize | 29 | 29 | 0 | 0 | 0 |
Bermuda | 22,617 | 21,673 | 747 | 181 | 16 |
Botswana | 131 | 129 | 0 | 2 | 0 |
Brazil | 31,338 | 19,309 | 11,652 | 337 | 40 |
British Virgin Islands | 698 | 267 | 2 | 429 | 1 |
Burma | 3 | 0 | 3 | 0 | 0 |
Cambodia | 1 | 1 | 0 | 0 | 0 |
Canada | 70,798 | 69,977 | 408 | 235 | 179 |
Cayman Islands | 5,612 | 3,362 | 1,496 | 673 | 81 |
Chile | 4,555 | 4,517 | 25 | 13 | 0 |
China | 2,256 | 2,219 | 33 | 4 | 0 |
Colombia | 704 | 667 | 38 | 0 | 0 |
Comoros | 2 | 2 | 0 | 0 | 0 |
Cook Islands | 1 | 1 | 0 | 0 | 0 |
Cote d'Ivoire | 2 | 2 | 0 | 0 | 0 |
Croatia | 126 | 126 | 0 | 0 | 0 |
Cyprus | 120 | 63 | 57 | 0 | 0 |
Czech Republic | 763 | 754 | 1 | 7 | 2 |
Denmark | 8,917 | 8,910 | 2 | 1 | 4 |
Dominica | 2 | 2 | 0 | 0 | 0 |
- 36 -
A.3. U.S. Holdings of Foreign Equity Securities, by Type
of Security,
as of December 31, 1997 (Continued)
Millions of dollars
Country |
|
Common |
Preferred |
Mutual |
|
Ecuador | 98 | 98 | 0 | 0 | 0 |
Egypt | 763 | 758 | 4 | 2 | 0 |
El Salvador | 39 | 2 | 36 | 0 | 0 |
Estonia | 17 | 17 | 0 | 0 | 0 |
Finland | 14,785 | 13,523 | 1,262 | 0 | 0 |
France | 85,019 | 84,593 | 223 | 120 | 83 |
Germany | 64,965 | 58,940 | 5,848 | 59 | 118 |
Ghana | 358 | 358 | 0 | 0 | 0 |
Greece | 1,513 | 1,495 | 18 | 0 | 0 |
Guatemala | 2 | 2 | 0 | 0 | 0 |
Guernsey | 378 | 249 | 52 | 76 | 1 |
Hong Kong | 28,102 | 27,608 | 115 | 364 | 15 |
Hungary | 3,483 | 3,469 | 13 | 0 | 0 |
Iceland | 3 | 3 | 0 | 0 | 0 |
India | 6,176 | 6,166 | 0 | 6 | 4 |
Indonesia | 2,488 | 2,466 | 11 | 5 | 6 |
International organizations | 10 | 10 | 0 | 0 | 0 |
Ireland | 14,090 | 13,825 | 32 | 174 | 116 |
Isle of Man | 9 | 2 | 0 | 8 | 0 |
Israel | 7,036 | 7,028 | 3 | 4 | 2 |
Italy | 41,547 | 35,623 | 612 | 5,240 | 71 |
Jamaica | 3 | 3 | 0 | 0 | 0 |
Japan | 136,404 | 135,807 | 116 | 414 | 67 |
Jersey | 1,517 | 36 | 0 | 1,481 | 0 |
Jordan | 40 | 40 | 0 | 0 | 0 |
Kazakhstan | 1 | 1 | 0 | 0 | 0 |
Kenya | 19 | 19 | 0 | 0 | 0 |
Korea (South) | 4,428 | 4,087 | 273 | 66 | 2 |
Latvia | 4 | 4 | 0 | 0 | 0 |
Lebanon | 133 | 133 | 0 | 0 | 0 |
- 37 -
A.3. U.S. Holdings of Foreign Equity Securities, by Type
of Security,
as of December 31, 1997 (Continued)
Millions of dollars
Country |
|
Common |
Preferred |
Mutual |
|
Lesotho | 70 | 70 | 0 | 0 | 0 |
Liberia | 924 | 758 | 167 | 0 | 0 |
Liechtenstein | 5 | 5 | 0 | 0 | 0 |
Lithuania | 14 | 14 | 0 | 0 | 0 |
Luxembourg | 5,345 | 4,641 | 294 | 394 | 16 |
Madagascar | 1 | 1 | 0 | 0 | 0 |
Malaysia | 4,713 | 4,699 | 0 | 11 | 3 |
Mauritius | 65 | 58 | 0 | 7 | 0 |
Mexico | 34,965 | 33,094 | 1,621 | 184 | 66 |
Morocco | 217 | 208 | 0 | 9 | 0 |
Namibia | 130 | 130 | 0 | 0 | 0 |
Nauru | 1 | 0 | 0 | 0 | 0 |
Netherlands | 106,984 | 106,415 | 155 | 157 | 256 |
Netherlands Antilles | 15,809 | 14,660 | 16 | 1,132 | 1 |
New Caledonia | 1 | 1 | 0 | 0 | 0 |
New Zealand | 5,311 | 5,214 | 63 | 31 | 4 |
Norway | 9,493 | 9,414 | 65 | 5 | 9 |
Pakistan | 1,180 | 1,179 | 0 | 0 | 0 |
Panama | 3,556 | 3,542 | 14 | 0 | 0 |
Papua New Guinea | 165 | 165 | 0 | 0 | 0 |
Peru | 2,341 | 2,332 | 9 | 0 | 0 |
Philippines | 2,848 | 2,643 | 191 | 13 | 1 |
Poland | 1,618 | 1,523 | 4 | 90 | 1 |
Portugal | 6,993 | 6,521 | 368 | 25 | 79 |
Romania | 4 | 4 | 0 | 0 | 0 |
Russia | 8,457 | 8,005 | 430 | 21 | 2 |
Senegal | 4 | 4 | 0 | 0 | 0 |
Seychelles | 8 | 6 | 0 | 0 | 0 |
Sierra Leone | 1 | 1 | 0 | 0 | 0 |
Singapore | 10,185 | 10,097 | 23 | 53 | 12 |
Slovakia | 87 | 87 | 0 | 0 | 0 |
- 38 -
A.3. U.S. Holdings of Foreign Equity Securities, by Type
of Security,
as of December 31, 1997 (Continued)
Millions of dollars
Country |
|
Common |
Preferred |
Mutual |
|
Slovenia | 56 | 56 | 0 | 0 | 0 |
Somalia | 3 | 3 | 0 | 0 | 0 |
South Africa | 9,937 | 9,863 | 17 | 52 | 5 |
Spain | 25,223 | 24,654 | 491 | 64 | 15 |
Sri Lanka | 133 | 132 | 0 | 0 | 0 |
Suriname | 46 | 46 | 0 | 0 | 0 |
Swaziland | 1 | 1 | 0 | 0 | 0 |
Sweden | 38,783 | 38,536 | 200 | 32 | 17 |
Switzerland | 61,897 | 61,602 | 48 | 114 | 132 |
Taiwan | 4,939 | 4,347 | 4 | 585 | 3 |
Thailand | 2,158 | 2,138 | 1 | 13 | 6 |
Trinidad and Tobago | 1 | 1 | 0 | 0 | 0 |
Turkey | 6,005 | 6,000 | 0 | 6 | 0 |
Turks and Caicos Islands | 384 | 27 | 357 | 0 | 0 |
Uganda | 1 | 1 | 0 | 0 | 0 |
Ukraine | 61 | 61 | 0 | 0 | 0 |
United Kingdom | 217,525 | 212,306 | 4,316 | 784 | 118 |
Uruguay | 15 | 14 | 0 | 0 | 1 |
Venezuela | 1,975 | 1,929 | 44 | 1 | 2 |
Zambia | 7 | 7 | 0 | 0 | 0 |
Zimbabwe | 133 | 133 | 0 | 0 | 0 |
African oil exporters2 | 61 | 61 | 0 | 0 | 0 |
Middle East oil exporters3 | 28 | 19 | 0 | 9 | 0 |
Total | 1,207,787 | 1,156,982 | 35,029 | 14,084 | 1,692 |
1. "Other" consists of equity unities (equities trading with embedded options or other derivative instruments), warrants, rights, and scrip.
2. Algeria, Gabon, Libya, and Nigeria
3. Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
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A.4. U.S. Holdings of Foreign Long-Term Debt Securities,
by Type of Security,
as of December 31, 1997
Millions of dollars
Country |
|
"Straight" |
Convertible |
Zero |
|
Albania | 32 | 7 | 0 | 25 | 0 |
Andorra | 9 | 7 | 2 | 0 | 0 |
Argentina | 25,675 | 24,508 | 45 | 181 | 941 |
Aruba | 11 | 11 | 0 | 0 | 0 |
Australia | 15,879 | 15,541 | 59 | 68 | 211 |
Austria | 1,954 | 1,898 | 5 | 0 | 51 |
Bahamas | 342 | 328 | 11 | 3 | 0 |
Barbados | 16 | 16 | 0 | 0 | 0 |
Belarus | 2 | 2 | 0 | 0 | 0 |
Belgium | 3,070 | 2,998 | 31 | 0 | 41 |
Belize | 5 | 5 | 0 | 0 | 0 |
Bermuda | 3,989 | 3,601 | 351 | 35 | 2 |
Bolivia | 12 | 12 | 0 | 0 | 0 |
Bosnia and Herzegovina | 3 | 3 | 0 | 0 | 0 |
Botswana | 16 | 16 | 0 | 0 | 0 |
Brazil | 20,318 | 19,471 | 6 | 56 | 785 |
British Virgin Islands | 440 | 369 | 61 | 9 | 1 |
Bulgaria | 1,310 | 1,292 | 0 | 11 | 7 |
Burma | 139 | 139 | 0 | 0 | 0 |
Cameroon | 4 | 4 | 0 | 0 | 0 |
Canada | 106,675 | 103,063 | 705 | 1,149 | 1,758 |
Cayman Islands | 13,635 | 12,067 | 688 | 220 | 660 |
Chile | 3,571 | 3,368 | 11 | 81 | 111 |
China | 3,178 | 2,939 | 210 | 7 | 22 |
Colombia | 3,458 | 3,229 | 33 | 39 | 157 |
Comoros | 19 | 19 | 0 | 0 | 0 |
Congo (Brazzaville) | 13 | 13 | 0 | 0 | 0 |
Costa Rica | 165 | 141 | 0 | 0 | 24 |
Cote d'Ivoire | 456 | 406 | 4 | 21 | 25 |
Croatia | 370 | 362 | 0 | 0 | 8 |
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A.4. U.S. Holdings of Foreign Long-Term Debt Securities,
by Type of Security,
as of December 31, 1997 (Continued)
Millions of dollars
Country |
|
"Straight" |
Convertible |
Zero |
|
Cyprus | 202 | 128 | 74 | 0 | 0 |
Czech Republic | 45 | 35 | 0 | 0 | 10 |
Denmark | 7,841 | 7,766 | 3 | 1 | 71 |
Dominican Republic | 87 | 72 | 0 | 0 | 15 |
Ecuador | 1,934 | 1,769 | 3 | 8 | 154 |
Egypt | 69 | 69 | 0 | 0 | 0 |
El Salvador | 12 | 12 | 0 | 0 | 0 |
Estonia | 10 | 10 | 0 | 0 | 0 |
Finland | 5,930 | 5,575 | 284 | 23 | 48 |
France | 14,733 | 12,235 | 1,314 | 252 | 932 |
Gambia | 32 | 32 | 0 | 0 | 0 |
Germany | 43,449 | 41,071 | 95 | 151 | 2,186 |
Greece | 1,228 | 1,228 | 0 | 0 | 0 |
Guadeloupe | 1 | 1 | 0 | 0 | 0 |
Guatemala | 191 | 187 | 0 | 0 | 4 |
Guernsey | 72 | 40 | 25 | 0 | 7 |
Honduras | 17 | 17 | 0 | 0 | 0 |
Hong Kong | 3,526 | 2,772 | 720 | 4 | 30 |
Hungary | 1,363 | 1,348 | 0 | 0 | 15 |
Iceland | 306 | 303 | 1 | 0 | 2 |
India | 1,962 | 1,643 | 280 | 19 | 20 |
Indonesia | 1,857 | 1,689 | 43 | 44 | 81 |
International organizations | 16,965 | 16,687 | 13 | 202 | 63 |
Ireland | 3,519 | 3,401 | 1 | 68 | 49 |
Israel | 5,262 | 4,286 | 35 | 857 | 84 |
Italy | 17,624 | 16,624 | 479 | 73 | 448 |
Jamaica | 326 | 326 | 0 | 0 | 0 |
Japan | 30,354 | 24,713 | 5,384 | 117 | 140 |
Jersey | 37 | 15 | 22 | 0 | 0 |
Jordan | 179 | 149 | 0 | 10 | 20 |
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A.4. U.S. Holdings of Foreign Long-Term Debt Securities,
by Type of Security,
as of December 31, 1997 (Continued)
Millions of dollars
Country |
|
"Straight" |
Convertible |
Zero |
|
Kazakhstan | 120 | 109 | 0 | 11 | 0 |
Kenya | 17 | 17 | 0 | 0 | 0 |
Kiribati | 24 | 24 | 0 | 0 | 0 |
Korea (South) | 10,834 | 10,420 | 235 | 64 | 115 |
Lebanon | 680 | 680 | 0 | 0 | 0 |
Lesotho | 3 | 3 | 0 | 0 | 0 |
Liberia | 476 | 468 | 0 | 8 | 0 |
Lithuania | 27 | 23 | 0 | 3 | 1 |
Luxembourg | 2,944 | 2,535 | 207 | 63 | 139 |
Macedonia | 20 | 16 | 0 | 0 | 4 |
Madagascar | 1 | 1 | 0 | 0 | 0 |
Malaysia | 4,365 | 3,901 | 426 | 27 | 11 |
Malta | 148 | 148 | 0 | 0 | 0 |
Marshall Islands | 35 | 34 | 0 | 0 | 1 |
Mauritius | 666 | 617 | 7 | 31 | 11 |
Mexico | 28,786 | 26,670 | 1,026 | 314 | 775 |
Moldova | 39 | 39 | 0 | 0 | 0 |
Morocco | 344 | 312 | 0 | 32 | 0 |
Namibia | 2 | 2 | 0 | 0 | 0 |
Netherlands | 13,166 | 12,271 | 399 | 222 | 274 |
Netherlands Antilles | 1,193 | 1,003 | 22 | 86 | 82 |
New Zealand | 3,506 | 3,464 | 17 | 15 | 10 |
Nicaragua | 76 | 63 | 0 | 13 | 0 |
Norway | 4,773 | 4,594 | 31 | 8 | 140 |
Pakistan | 341 | 299 | 18 | 0 | 24 |
Palau | 1 | 1 | 0 | 0 | 0 |
Panama | 3,039 | 2,900 | 0 | 19 | 120 |
Papua New Guinea | 9 | 0 | 0 | 9 | 0 |
Paraguay | 81 | 81 | 0 | 0 | 0 |
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A.4. U.S. Holdings of Foreign Long-Term Debt Securities,
by Type of Security,
as of December 31, 1997 (Continued)
Millions of dollars
Country |
|
"Straight" |
Convertible |
Zero |
|
Peru | 1,203 | 1,140 | 0 | 1 | 62 |
Philippines | 4,479 | 4,190 | 244 | 22 | 23 |
Poland | 2,877 | 2,762 | 53 | 27 | 35 |
Portugal | 1,240 | 1,200 | 35 | 0 | 5 |
Romania | 207 | 198 | 0 | 9 | 0 |
Russia | 3,696 | 3,491 | 6 | 149 | 50 |
Sao Tome and Principe | 33 | 33 | 0 | 0 | 0 |
Senegal | 3 | 3 | 0 | 0 | 0 |
Serbia and Montenegro | 13 | 13 | 0 | 0 | 0 |
Seychelles | 46 | 46 | 0 | 0 | 0 |
Singapore | 550 | 433 | 87 | 18 | 12 |
Slovakia | 97 | 95 | 1 | 0 | 1 |
Slovenia | 168 | 167 | 0 | 0 | 1 |
Somalia | 3 | 0 | 3 | 0 | 0 |
South Africa | 2,604 | 2,340 | 88 | 99 | 77 |
Spain | 6,922 | 6,862 | 12 | 31 | 17 |
Sri Lanka | 60 | 60 | 0 | 0 | 0 |
Sweden | 13,102 | 12,581 | 24 | 219 | 278 |
Switzerland | 1,243 | 889 | 189 | 96 | 69 |
Taiwan | 1,288 | 364 | 899 | 7 | 18 |
Thailand | 3,466 | 2,969 | 414 | 50 | 33 |
Tokelau Islands | 20 | 20 | 0 | 0 | 0 |
Tonga | 50 | 50 | 0 | 0 | 0 |
Trinidad and Tobago | 463 | 450 | 0 | 0 | 13 |
Tunisia | 280 | 275 | 0 | 0 | 5 |
Turkey | 1,005 | 829 | 0 | 110 | 66 |
Turks and Caicos Islands | 35 | 35 | 0 | 0 | 0 |
Ukraine | 29 | 12 | 0 | 18 | 0 |
United Kingdom | 54,155 | 50,712 | 933 | 990 | 1,520 |
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A.4. U.S. Holdings of Foreign Long-Term Debt Securities,
by Type of Security,
as of December 31, 1997 (Continued)
Millions of dollars
Country |
|
"Straight" |
Convertible |
Zero |
|
Uruguay | 598 | 585 | 0 | 13 | 0 |
Venezuela | 5,852 | 5,243 | 113 | 20 | 476 |
Vietnam | 37 | 37 | 0 | 0 | 0 |
Zambia | 2 | 2 | 0 | 0 | 0 |
Zimbabwe | 36 | 36 | 0 | 0 | 0 |
African oil exporters2 | 782 | 652 | 0 | 129 | 1 |
Middle East oil exporters3 | 430 | 305 | 77 | 26 | 22 |
Total | 547,228 | 510,238 | 16,600 | 6,716 | 13,674 |
1. Negotiable certificates of deposit, perpetual bonds, and debt units (debt trading with embedded options or other derivative instruments).
2. Algeria, Gabon, Libya, and Nigeria.
3. Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
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Appendix B. Forms and Instructions
[Note: Forms not available in electronic files]
TABLE OF CONTENTS
Page
I. Introduction 1
II. Who Must Report 2
III. How to Report 3
IV. What to Report 4
V. Repurchase, Lending and Buy/Sell Back Agreements 6
VI. General Information 7
VII. Where and When to Report 8
VIII. Detailed Form-1 Instructions 8
IX. Detailed Form-2 Instructions 10
X. Detailed Form-3 Instructions 12
APPENDICES
Appendix A - Forms [Not available in electronic
files] 15
Appendix B - Country/Currency Codes 23
Appendix C - Industry Codes 33
Appendix D - Security ID Coding Systems 35
Appendix E - Magnetic Tape or Cartridge Reporting Format 37
Appendix F - Diskette (Floppy Disk) Reporting
Format 41
[Not available in electronic files]
I. INTRODUCTION
The U.S. Treasury Department is conducting a mandatory survey of the ownership of foreign long-term securities by U.S. residents. Long-term securities are defined as equity securities and debt securities with an original term-to- maturity of more than one year.
This survey will collect data as of December 31, 1997. Data are to be reported to the Treasury Department by March 31, 1998.
The data collected by this survey will be used to improve the U.S. balance of payments accounts, the international investment position, and to formulate economic and financial policy. This survey is part of an internationally- coordinated effort to improve statistics on the holdings of foreign securities by major investing countries. Measured holdings in this area are thought to be seriously deficient, and are believed to be a major source of error in worldwide balance of payments statistics. For this reason, most major investing countries are conducting coordinated surveys with consistent definitions as of December 31, 1997 in an effort to improve these data.
The general approach taken by this survey is to collect detailed data from custodians of securities whenever possible, and to collect detailed data from investors only when they do not entrust their holdings of foreign securities to U.S. custodians. U.S. investors who entrust the safekeeping of their foreign securities to U.S. custodians need only report the name and address of the custodian(s) and the amount(s) entrusted. Likewise, when a U.S. custodian in turn entrusts the safekeeping of foreign securities to another U.S. custodian, only the latter custodian reports in detail the foreign holdings. The former custodian only indicates the U.S. custodian to whom they have entrusted the foreign securities, and the amount entrusted.
Only foreign securities held for portfolio investment purposes are to be reported on this survey. Foreign securities held for direct investment should not be reported. Direct investment is defined as ownership or control, by one entity or an affiliated group, of 10% or more of the voting equity of a business enterprise.
Typically only one copy of the survey booklet is mailed to each corporate family. It is the responsibility of the parent organization in each corporate family to ensure that all applicable units within its organization report on this survey. If your firm receives a copy of the survey booklet and is not the parent unit in your organization, it is your responsibility to ensure that the parent unit in your organization is notified of its responsibilities pertaining to the survey.
In some cases there may be multiple U.S. subsidiaries of a foreign company which report directly to their parent unit abroad. In this case there is no U.S.-based parent. The U.S. organization which receives the survey booklet should act as if it were the parent organization and ensure that all applicable U.S.-resident units report on the survey.
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II. WHO MUST REPORT
Custodians who manage the safekeeping of foreign securities on behalf of U.S. residents, if the total market value of these foreign securities is $20 million or more as of December 31, 1997.
Investors who own at least $20 million in foreign securities as of December 31, 1997. If these securities are in turn entrusted to U.S. custodians, the investor should only report the name(s) of the custodian(s) and the amount(s) entrusted using Form-3. Otherwise, the investor must report these holdings in detail using Form-2. If there is any question as to whether or not your custodian will be reporting certain holdings on this survey, please contact your custodian to clarify the situation. Investors refers both to those who invest for their own account as well as to those who invest on behalf of asset pools, such as the managers of mutual funds, insurance companies and pension funds.
U.S. custodians sometimes hire foreign branches of other U.S. banks to act as their foreign local subcustodians. In such cases care must be taken to ensure that neither double-counting nor under-reporting occurs. When such a relationship exists, the holdings involved should be reported by the U.S. custodian that hired the foreign branch of a U.S. bank to act as its foreign local subcustodian, not by the U.S. bank whose foreign branch is acting as a foreign local subcustodian.
U.S. custodians who are not true international or global custodians may still have holdings to report on this survey. This is because many foreign securities are issued in the United States, trade on U.S. exchanges, and are denominated in U.S. dollars. Thus any organization that provides custody services for U.S. securities may also have in custody foreign securities. Examples of such securities are ADRs (American Depositary Receipts), 144A securities, and Yankee bonds.
U.S. investors who employ other organizations (either domestic or foreign) to invest in foreign securities on their behalf must report these investments themselves using Form-2 or Form-3 as appropriate. It is the responsibility of the owner of these securities to report on the survey, not of any other organization, such as an investment manager.
To determine the level of foreign securities held, firms must aggregate their holdings and the holdings of all branches and affiliates together.
All firms that receive a copy of the survey booklet must respond to the survey even if they are exempt from reporting. Firms that are exempt need only complete the identification information on Form-1 and check the box indicating that they are exempt.
U.S. organizations that meet the reporting guidelines must report on this survey whether or not they have been mailed a set of reporting instructions by the Treasury Department. Reporting requirements for this survey have been published in the Federal Register, which constitutes legal notification of the requirement to report on this survey.
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III. HOW TO REPORT
All firms that receive a copy of the survey booklet must complete and return the postcard contained in the booklet within 30 days of receipt. Even if a firm anticipates that it will be filing an exemption, the postcard should be completed and returned.
All firms that receive a copy of the survey booklet must submit their survey responses to the Treasury Department by March 31, 1998 to the address listed in Section VII. Firms unable to meet the reporting schedule should contact a member of the survey staff at (202) 622-2240 to request an extension.
Reporters can file one consolidated report for their entire organization, or different units may file independently. If two or more units are filing separately, please contact a member of the survey staff for additional Control Numbers.
All survey respondents must complete Form-1. This form contains basic identifying information as well as summary information pertaining to data reported on other forms. Firms exempt from the survey need only complete Form-1.
Form-2 is used to report detailed information on holdings of foreign long-term securities. Such information must be provided by all custodians who manage the safekeeping of at least $20 million of foreign long-term securities and by all investors who own at least $20 million in foreign long-term securities and who do not entrust the safekeeping of these securities to U.S. custodians. See Section IX for specific instructions on completing Form-2.
Form-2 data may be submitted on magnetic tapes or cartridges, diskettes (floppy disks), or on paper forms. Reports containing over 100 Form-2 records must be submitted on tapes, cartridges or diskettes. Form-2 data submitted on magnetic tapes or cartridges must be submitted in the format specified in Appendix E. Form-2 data submitted on diskettes must be submitted in the format specified in Appendix F. Form-2 data submitted on paper can be submitted either on copies of the Form-2 provided in this package or on printouts listing the data requested on Form-2 in the same order that it appears on Form-2.
Form-3 is used by investors who own foreign long-term securities that have been entrusted to U.S. custodians and by U.S. custodians who have entrusted some or all of their custody securities to other U.S. custodians. These holdings of foreign long-term securities should not be reported in detail on Form-2. Instead, only the total amounts entrusted to U.S. custodians should be reported, along with the name and address of the U.S. custodian(s). It is only necessary to complete Form-3 reports for custodians to whom at least $5 million in foreign long-term securities have been entrusted. See section X for specific instructions on completing Form-3.
Some respondents will need to complete both Form-2's and Form-3's.
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IV. WHAT TO REPORT
All foreign equity securities, including common and preferred stock, voting and non-voting securities, etc.
All foreign debt securities with an original term-to-maturity in excess of one year, regardless of the remaining term-to-maturity. This would include all straight debt, convertible debt, stripped debt, zero-coupon debt, marketable CDS, asset-backed securities, etc.
All composite units, which may combine an equity or debt security with some other type of instrument, such as an option or warrant.
Securities issued in the United States by foreign firms are foreign securities, even though they may be denominated in U.S. dollars and trade on U.S. securities exchanges. Conversely, securities issued abroad by U.S. firms are U.S. securities, even though they may be denominated in foreign currencies and trade on foreign exchanges. Securities issued by foreign subsidiaries of U.S. firms are foreign securities, and vice-versa. Only the country in which the issuer of the security is located is relevant in determining whether a security is U.S. or foreign; neither the country in which the security was issued nor the currency of denomination is relevant.
ADRs (American Depositary Receipts) and 144A issues are considered foreign securities and holdings of these securities should be reported on the survey.
Mutual funds and investment trusts are determined to be U.S. or foreign securities based on the country in which the fund is legally established, not based on the type of security the fund purchases. Take, for example, a mutual fund organized in Bermuda which purchases only U.S. Treasury securities. The shares of this fund are foreign securities for the purposes of this survey. U.S. holdings of this fund should be reported on the survey, and this security should be assigned Security Type 13 (mutual fund or investment trust), and not categorized as a debt security based on the fact that it invests solely in debt securities.
Conversely, shares in a U.S. mutual fund that invests completely or partially in foreign securities should not be reported, since the shares of this mutual fund are U.S. securities. The actual foreign securities which the fund purchases are reportable on the survey, and should be reported by the mutual fund itself and/or its U.S. custodian.
Care must also be taken in determining if a mutual fund, investment trust or investment company is a U.S. or foreign fund. Many funds established offshore have names which are similar to U.S. mutual fund names, particularly when the fund is managed by a management group which also manages many U.S. funds and which may be thought of as managing only U.S. funds. Some of the largest U.S. fund management groups also have offshore funds. If there is doubt as to whether a fund is U.S. or foreign, please contact a member of the survey staff at (202) 622-2240.
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The following is a list of the types of securities to report or not report on this survey. This list is not exhaustive. If there is any question as to the types of securities to include or exclude, please do not hesitate to contact a member of the survey staff at (202) 622-2240.
Report:
Common stock
Preferred stock
Warrants
Rights
Shares or units in foreign mutual funds or investment trusts
ADRs
144A and Regulation S securities
Units that combine a long-term security with an option, warrant, etc.
Yankee bonds and other foreign debt securities issued in the U.S.
Foreign long-term debt securities, such as bonds, debentures and notes
(Including those with less than one year remaining
until maturity)
Brady bonds
Stripped debt securities
Zero coupon debt securities
Asset-backed or index linked securities
Debt securities issued by international organizations located in the
U.S.
Negotiable CDS
Bearer securities
Securities sold under repo agreements (see Section V)
Securities lent under security lending arrangements (see Section V)
Do Not Report:
U.S. securities
Short-Term debt securities (Original term-to-maturity of one
year or less)
Options
Futures contracts
Loans
Shares of U.S. mutual funds or investment trusts
(even if these funds invest in foreign
securities)
Trade credits and accounts receivables
Non-negotiable CDS
Securities owned by non-U.S. residents
Securities obtained under repurchase agreements (see Section V)
Securities obtained through security lending agreements (see Section V)
NOTE TO ADR ISSUERS: Issuers of ADRs should not report on Form-2 their holdings of the actual foreign securities which back the ADRs, since this would lead to double counting. Instead, a separate listing should be provided for these securities that lists the name and security ID code of the underlying issue, the total number of shares of the underlying security held, and the ratio between the value of one share of the underlying security and one share of the ADR.
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Foreign securities are securities issued by firms resident outside of the United States, with the exception of international organizations, which even though they may be resident in the United States are still considered foreign for the purposes of this survey. International organizations resident in the United States that have or may soon issue securities are:
International Bank for Reconstruction
and Development (IBRD or World Bank)
International Finance Corporation (IFC) of the World Bank
Inter-American Development Bank (IDB)
North American Development Bank (NADBank)
V. SECURITIES INVOLVED IN REPURCHASE, LENDING OR BUY/SELL BACK AGREEMENTS
A repurchase agreement (repo) is an arrangement involving the sale of securities at a specified price with a commitment to repurchase the same or similar securities at a specified price on a future date. A reverse repo is the same transaction seen from the other side; that is, an agreement whereby a security is purchased at a specified price with a commitment to resell the same or similar securities at a fixed price on a specified future date. Buy/sell back agreements should be treated the same as repos.
Securities lending is an arrangement whereby the ownership of a security is transferred in return for collateral, usually another security, under condition that the security or similar security will revert to its original owner at a future date. Securities borrowing is the same transaction seen from the other side.
-- Securities sold under repurchase agreements or lent under securities lending arrangements should be reported by the original owner of the securities (or their custodian) as if the securities were continuously held; that is, as if the repurchase or security lending agreement did not exist. Thus these securities should be included in the Form-2 or Form-3 reports.
-- Securities temporarily acquired under reverse repurchase or borrowing arrangements should not be reported.
Foreign long-term securities received as collateral as part of a repo or loan should not be reported. Foreign long-term securities temporarily delivered out as collateral as part of a reverse repo or security borrowing agreement should be reported as continuously held.
If your organization cannot report its repo or securities lending positions according to the above specifications, please contact a member of the survey staff at (202) 622-2240 to discuss the best way to handle your firm's particular circumstances.
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VI. GENERAL INFORMATION
Authority
This survey is conducted under the authority of the International Investment and Trade in Services Survey Act (22 U.S.C. 3101 et seq., [the Act]) and Executive Order 11961 of January 19, 1977. The Act specifies that the President has the authority to conduct a regular data collection program, including such studies and surveys as may be necessary and feasible, to secure current information on international investment, including (but not limited to) such information as may be necessary for computing and analyzing the balance of payments and the international investment position of the United States (22 U.S.C. 3103). In Executive Order 11961 �2, the President designated the Secretary of the Treasury as the Federal Executive responsible for collecting data on portfolio investment required by the Act.
Confidentiality of Data Reported
The information collected by this survey may be used only for analytical and statistical purposes and to enforce the Act. Access to information is available only to officials and employees (including consultants and contractors and their employees) designated to perform functions under the Act. Persons having access to individual company information submitted pursuant to the Act are subject to penalties for unauthorized disclosure (22 U.S.C. �3104 and 18 U.S.C. �1905)
Penalties
Reporting on this survey is mandatory for any U.S. person or organization satisfying the reporting requirements of the survey. Whoever fails to furnish any information required under the Act shall be subject to a civil penalty of not less than $2,500 and not more than $25,000, or to injunctive relief ordering such person to comply, or both. Whoever willfully fails to submit any information required under the Act or willfully violates any rule, regulation, order, or instruction promulgated under the Act, upon conviction, shall be fined not more than $10,000; and, if an individual, may be imprisoned for not more than a year, or both; and any officer, director, employee or agent who knowingly participates in such violation, upon conviction, may be punished by a like fine, imprisonment, or both (22 U.S.C. #3105).
Paperwork Reduction Act Notice
This survey has been prepared in accordance with the Paperwork Reduction Act of 1995. The purpose is to collect accurate and complete data that will enable the Treasury Department to fulfill its responsibility under the Act. The estimated average burden for reporting on this survey is 240 hours per custodian reporting FORM-2 data, 80 hours per end-investor reporting FORM-2 data, 40 hours per respondent submitting FORM-3 data, and 16 hours for respondents claiming exemptions. The amount of time required to complete the survey will vary with the amount of data to report and the number of reporting units involved. Comments concerning the accuracy of these estimates or suggestions for improving data collection procedures or reducing
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reporter burden should be directed to: Director, Outbound Portfolio Investment Survey, U.S. Treasury Department, 1500 Pennsylvania Avenue, NW, Room 5438, Washington, DC 20220; and to: Office of Management and Budget, Paperwork Reduction Project (1505-0146), Washington, DC, 20503. No U.S. person is required to respond to any U.S. Government collection of information unless it displays a currently valid OMB control number.
VII. WHERE AND WHEN TO REPORT
All reports are due to the Treasury Department by March 31, 1998 unless an extension to the reporting deadline has been granted.
Data should be sent to:
Department of the Treasury"
Outbound Portfolio Investment Survey
1500 Pennsylvania Ave, NW Room 5438
Washington, DC 20220
All data used to create a survey report must be retained for a period of two years after the date of the report's submission.
Should there be questions pertaining to this survey, please contact a member of the survey staff at (202) 622-2240.
VIII. DETAILED FORM-1 INSTRUCTIONS
This form must be completed by all organizations that receive a survey booklet. This form is used to:
-- provide basic identifying information;
-- provide summaries of data reported on Form-2 and Form-3;
-- claim an exemption.
A signed Form-1 must accompany all submissions, even if the Form-2 data is submitted on tape, cartridge or diskette. When Form-2 data is submitted on electronic media, the first record of the submission is a partial reproduction of the Form-1 data for identification purposes.
Form-1 contains the following items.
1. Control Number - Enter the 7 digit number from the top right-hand corner of the address label on your survey booklet. If your Control Number is unknown, please contact a member of the survey staff at (202) 622-2240.
2 - 6 - Company Name and Address.
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7. Reporting Status - Check Exempt if your firm is exempt from reporting
on the survey. Check Form-2 if your firm is filing Form-2 reports. Check Form-3 if your firm is filing Form-3 reports. Check both Form-2 and Form-3 if your firm is submitting both types of forms.
For electronically filed reports (tape, cartridge, or diskette), in position 147 of the first record, enter a "2" if your firm is reporting Form-2 data only, or a "B" if submitting both Form-2 and Form-3 records.
8. Industry Code - Enter the 2-digit code that best describes the activity of your firm from the list provided in Appendix C.
Note: Organizations claiming an Exemption should skip to Item 16.
Items 9-13 refer to Form-2 Data Only
9. Number of Form-2 Records Reported - Enter the total number of Form-2 records submitted with your report, whether they are submitted on paper, tape or diskette.
10. Total US$ Value of All Priced Equity Securities - For all equity securities (Form-2 Item 6 = 11, 12, 13, 14 or 15) for which prices are known or estimated, enter the total US$ value (Form-2, Item 11) of all such records.
11. Total US$ Value of All Priced Debt Securities - For all debt
securities (Form-2, Item 6 = 21 or higher) for which prices are known or estimated, enter the total US$ value (Form-2, Item 11) of all such records.
12. Total Number of Shares of All Unpriced Equity Securities - For all
equity securities (Form-2, Item 6 = 11, 12, 13, 14 or 15) for which prices are unknown, enter the total number of shares (Form-2, Item 13) of all such records.
13. Total US$ Face Value of All Unpriced Debt Securities - For all debt
securities (Form-2, Item 6 = 21 or higher) for which prices are unknown, enter the total US$ face value (Form-2, Item 13) of all such records.
Items 14-15 Refer to Form-3 Data Only
14. Number of Form-3 Records Reported - Enter the total number of Form-3 records submitted.
15. Total US$ Market Value of Securities Entrusted to Domestic Custodians -
Enter the estimated total market value of all foreign long-term securities entrusted to domestic custodians. This value may be greater than the sum of the amounts reported on your Form-3 records if amounts of less than $5 million have been entrusted to domestic custodians and therefore not reported.
16-19 - Certifier's name, title, phone number and date signed.
- 9 -
IX. DETAILED FORM-2 INSTRUCTIONS
This form should be used by all U.S. custodians to
report their custody holdings of foreign securities (if these securities have not in turn
been entrusted to other U.S. custodians), and by all U.S. investors who own foreign
securities but have not entrusted the safekeeping of these securities to U.S. custodians.
Domestic custodians who entrust any of their holdings of foreign securities to other domestic custodians should report these holdings on Form-3, not on Form-2, to avoid double-counting.
However, securities entrusted by custodians directly to central securities depositories, such as Depository Trust Company, should be reported on Form-2 by the custodian who entrusted the securities to the central depository.
Form-2 data may be submitted on magnetic tapes or cartridges, diskettes (floppy disks), or on paper forms, as specified in Section III.
Form-2 contains the following items.
1. Control Number - Enter the Control Number from Form-1, Item 1.
2. Sequence Number - Starting at 1, sequentially number each record. The last record should have the same sequence number as the total number of records reported on Form-1, Item 9.
3. Security ID Code - Enter the security ID code used to identify this record. ISIN codes are preferred. If the ISIN code is unknown or unavailable, your best efforts to use a code issued by a national or international numbering agency, such as a SEDOL, CUSIP, or CINS code, are appreciated. Use of internally-generated codes makes data aggregation and analysis very difficult.
4. Security ID Coding System - From Appendix D select the two-digit code that corresponds to the type of code entered in Item 3 above.
5. Ownership Code - Select the code that best describes the owner of this security from the list on the form.
6. Security Type - Select the code that best describes the type of security from the list on the form.
7. Private or Government - Enter 'P' if this security was issued by a private organization; 'G' if this security was issued by a national or local government, or an international organization such as the World Bank.
8. Depositary Receipt/Share - Enter Y if the security is a Depositary Receipt or Share (such as an ADR); enter N if it is not.
9. Name of Issuer - Enter the name of the organization that issued this security.
- 10 -
10. Security Description - Provide pertinent descriptive information.
11. Dollar Value of Security Held - Enter the total US$ value (price times quantity) of your holdings of this security, rounded to the nearest dollar.
For equity securities (Form-2, Item 6 = 11, 12, 13, 14 or 15), enter the US$
price (Form-2, Item 12) of this security multiplied by the number of shares held (Form-2, Item 13).
For debt securities (Form-2, Item 6 = 21 or higher), enter the product of the US$ price (Form-2, Item 12) of this security multiplied by the US$ Face Value (Form-2, Item 13).
12. Market Price - For equity securities, enter the price per share in U.S. dollars as of December 31, 1997.
For debt securities, enter the price as a percentage of the security's original face value. Thus if a security is trading at 90% of its original value as of December 31, 1997, enter .900 in this field. In the case of zero-coupon or deep discount issues, which trade when issued at a small percentage of their face value at maturity, enter the percentage of their face value at maturity that they are worth as of December 31, 1997. Thus, if a zero coupon bond was originally issued at a value equal to 17% of its face value at maturity, and has by December 31, 1997 appreciated to 43% of its face value at maturity, enter .430 in this field.
Note: Custodians should provide prices for securities when reporting on this survey in a manner consistent with their normal business practices for providing prices to their customers. Thus if a firm typically provides prices to its customers for all securities for which prices are commercially available, the same practice should be followed when reporting on the survey.
13. Face Value or Number of Shares Held - For equity securities, enter the number of shares held, rounded to the nearest share. For debt securities, enter the face value held in US$. For asset-backed securities (Form-2,
Item 6 [Security Type] = 24), for which principal is repaid over time, enter the remaining, unrepaid, face value of principal outstanding for this security as of December 31, 1997.
Note: For securities that trade in lots, be careful to enter the number of shares (equity) or face amount held (debt), not the number of lots held.
Also, enter the price per share, not per lot.
Item 14 Pertains To Asset-Backed
Securities Only
(Security Type 24)
14. Original Face Value for Asset-Backed Security - Pertaining to the
amount entered in Item 13 above, enter the original face value of principal in $US that would have been outstanding if no principal had been repaid.
For example, if $1,000,000 of an asset-backed security was bought at date of issue, and 30% of the principal of this security has been repaid as of December 31, 1997, $700,000 should be entered in Item 13, and $1,000,000 should be entered in Item 14.
- 11 -
The ratio between the amounts entered in Item 13 and Item 14 (700,000/1,000,000 = .700) should equal the Factor Value for this security.
15. Currency Security Denominated In - Enter the 5-digit code from Appendix B corresponding to the currency in which the security is denominated.
16. Exchange Rate Used - Enter the exchange rate used to convert the price in Item 12 into U.S. dollars. This should be the December 31, 1997 exchange rate and should be expressed as the US$ value of one unit of the foreign currency.
For example, if 4 units of the currency equal one US dollar, enter 0.25 here. If one unit of the currency equals 2 US dollars, enter 2.00 here. If the currency of denomination is the US dollar, enter 1.00 here.
17. Amount on Loan or Repo - Of the total US$ value held of this security as reported in Item 11 above, how much of this position was on loan or sold under a repurchase or sell/buy back agreement as of December 31, 1997.
18. Loan or Repo - Enter "R" if the amount reported in Item 17 was sold under a repurchase or sell/buy back agreement, "L" if it is on loan as part of a security lending agreement.
19. Country of Issuer of Security - Enter the 5-digit country code from the list provided in Appendix B that corresponds to the home country of the organization that issued this security.
Items 20-21 Pertain To Debt Securities Only
20. Issue Date - Enter the Issue Date in MMDDYYYY format.
21. Maturity Date - Enter the Maturity Date in MMDDYYYY format.
X. DETAILED FORM-3 INSTRUCTIONS
This form should be used by all U.S. investors who own
foreign securities and who in turn entrust their safekeeping to U.S. custodians, and
by U.S. custodians who have entrusted the safekeeping of foreign securities entrusted to
them by U.S. investors to other U.S. custodians.
On this form indicate the name and address of the U.S. custodian(s) to whom the foreign securities have been entrusted, as well as the total estimated market value of these securities as of December 31, 1997.
Only complete this form for custodians to whom you have entrusted at least $5 million in foreign securities.
- 12 -
Form-3 data can be submitted either on copies of the Form-3 provided in this package or on printouts listing the data requested on Form-3 in the same order that it appears on Form-3.
1. Sequence Number - Starting at 1, sequentially number each record. The last record should have the same sequence number as the total number of Form-3 records reported on Form-1, Item 14.
2. Name of Custodian
3. Address of Custodian
4. Total Value of Foreign Securities Entrusted to this Custodian - Enter the total estimated market value of foreign long-term securities entrusted to this custodian as of December 31, 1997 in millions of US$.
5. Type of Securities Entrusted - Indicate whether the securities entrusted to this custodian were securities owned by your organization or if they were securities owned by someone else which were given to you to keep in custody, and which you in turn passed on to another U.S.-based custodian for safekeeping.
If your firm entrusted both securities which you own and securities held in custody to this custodian, create two separate Form-3 records denoting how much of each type was entrusted.
- 13 -
APPENDIX A
FORMS
[Forms are not available in electronic files]
APPENDIX B
COUNTRY/CURRENCY CODES
Country Codes
COUNTRY | CODE | COUNTRY | CODE | |
Afghanistan | 40401 | Cote d'Ivoire (Ivory Coast) | 53007 | |
Albania | 15105 | Croatia | 14214 | |
Algeria | 50105 | Cuba | 30708 | |
Andorra | 10103 | Cyprus | 10405 | |
Angola | 50202 | Czech Republic | 15288 | |
Anguilla | 30228 | Denmark | 10502 | |
Antigua and Barbuda | 35203 | Djibouti | 52302 | |
Argentina | 30104 | Dominica | 36218 | |
Armenia | 16519 | Dominican Republic | 30805 | |
Aruba | 35254 | East Timor | 45004 | |
Australia | 60089 | Ecuador | 31003 | |
Austria | 10189 | Egypt | 57002 | |
Azerbaijan | 16527 | El Salvador | 31089 | |
Bahamas | 35319 | Equatorial Guinea | 51942 | |
Bahrain | 40703 | Eritrea | 52019 | |
Bangladesh | 40746 | Estonia | 15407 | |
Barbados | 30155 | Ethiopia | 52108 | |
Belarus | 16209 | Faroe Islands | 10618 | |
Belgium | 10251 | Fiji | 60607 | |
Belize | 35718 | Finland | 10707 | |
Benin | 51802 | France | 10804 | |
Bermuda | 35602 | French Guiana | 36404 | |
Bhutan | 40819 | French Polynesia | 60704 | |
Bolivia | 30201 | Gabon | 52418 | |
Bosnia and Herzegovina | 14109 | Gambia | 52507 | |
Botswana | 50504 | Georgia | 16535 | |
Brazil | 30309 | Germany | 11002 | |
British Virgin Islands | 35807 | Ghana | 52604 | |
Brunei | 41009 | Gibraltar | 11088 | |
Bulgaria | 15202 | Greece | 11207 | |
Burkina Faso | 57118 | Greenland | 60887 | |
Burma | 41106 | Grenada | 36706 | |
Burundi | 50806 | Guadeloupe | 36803 | |
Cambodia | 41203 | Guatemala | 31208 | |
Cameroon | 51004 | Guernsey | 13006 | |
Canada | 29998 | Guinea | 52701 | |
Cape Verde | 51209 | Guinea-Bissau | 54402 | |
Cayman Islands | 36137 | Guyana | 31305 | |
Central African Republic | 51306 | Haiti | 31402 | |
Chad | 51403 | Honduras | 31488 | |
Chile | 30406 | Hong Kong | 42005 | |
China | 41408 | Hungary | 15504 | |
Colombia | 30503 | Iceland | 11304 | |
Comoros | 51519 | India | 42102 | |
Congo (Brazzaville) | 51608 | Indonesia | 42218 | |
Congo (Kinshasa) | 51705 | Iran | 42307 | |
Cook Islands | 60402 | Iraq | 42404 | |
Costa Rica | 30589 | Ireland | 11401 |
- 25 -
Country Codes
COUNTRY | CODE | COUNTRY | CODE | |
Isle of Man | 13008 | New Caledonia | 61409 | |
Israel | 42501 | New Zealand | 61689 | |
Italy | 11509 | Nicaragua | 31801 | |
Jamaica | 31607 | Niger | 54208 | |
Japan | 42609 | Nigeria | 54305 | |
Jersey | 13007 | Niue Island | 61808 | |
Jordan | 42706 | Norway | 12203 | |
Kazakstan | 16543 | Oman | 44105 | |
Kenya | 53104 | Pakistan | 44709 | |
Kiribati | 60526 | Palau | 62502 | |
Korea, North | 44407 | Panama | 31887 | |
Korea, South | 43001 | Papua New Guinea | 61751 | |
Kuwait | 43109 | Paraguay | 32107 | |
Kyrgyzstan | 16551 | Peru | 32204 | |
Laos | 43303 | Philippines | 44806 | |
Latvia | 15601 | Pitcairn | 62103 | |
Lebanon | 43419 | Poland | 15768 | |
Lesotho | 53155 | Portugal | 12319 | |
Liberia | 53201 | Qatar | 45101 | |
Libya | 53309 | Reunion | 54607 | |
Liechtenstein | 11606 | Romania | 15806 | |
Lithuania | 15709 | Russia | 16101 | |
Luxembourg | 11703 | Rwanda | 55018 | |
Macao | 43508 | Saint Helena | 55107 | |
Macedonia, FYR of | 14419 | Saint Kitts and Nevis | 37303 | |
Madagascar | 53406 | Saint Lucia | 37508 | |
Malawi | 53503 | Saint Pierre and Miquelon | 62219 | |
Malaysia | 43605 | Saint Vincent and Grenadines | 37605 | |
Maldives | 43702 | San Marino | 12408 | |
Mali | 53589 | Sao Tome and Principe | 55204 | |
Malta | 11819 | Saudi Arabia | 45608 | |
Marshall Islands | 61204 | Senegal | 55301 | |
Martinique | 37001 | Serbia and Montenegro | 13218 | |
Mauritania | 53708 | Seychelles | 55409 | |
Mauritius | 53805 | Sierra Leone | 55506 | |
Mexico | 31704 | Singapore | 46019 | |
Micronesia, Fed. States | 60305 | Slovakia | 15318 | |
Moldova | 16306 | Slovenia | 14338 | |
Monaco | 12009 | Solomon Islands | 62308 | |
Mongolia | 43818 | Somalia | 55603 | |
Montserrat | 37109 | South Africa | 55719 | |
Morocco | 54003 | Spain | 12505 | |
Mozambique | 54089 | Sri Lanka | 41319 | |
Namibia | 54127 | Sudan | 56103 | |
Nauru | 61301 | Suriname | 37702 | |
Nepal | 44202 | Swaziland | 56219 | |
Netherlands | 12106 | Sweden | 12602 | |
Netherlands Antilles | 37206 | Switzerland | 12688 |
- 26 -
Country Codes
COUNTRY | CODE |
Syria | 46205 |
Taiwan | 46302 |
Tajikistan | 16578 |
Tanzania | 56405 |
Thailand | 46418 |
Togo | 56502 |
Tokelau Islands | 62405 |
Tonga | 62448 |
Trinidad and Tobago | 32409 |
Tunisia | 56707 |
Turkey | 12807 |
Turkmenistan | 16616 |
Turks and Caicos Islands | 37818 |
Tuvalu | 60518 |
Uganda | 56804 |
Ukraine | 16403 |
United Arab Emirates | 46604 |
United Kingdom | 13005 |
Uruguay | 32603 |
Uzbekistan | 16705 |
Vanuatu | 61603 |
Vatican City | 13102 |
Venezuela | 32719 |
Vietnam | 46906 |
Western Samoa | 62618 |
Yemen | 47104 |
Zambia | 57207 |
Zimbabwe | 54704 |
Defunct Country | 88862 |
International Organizations | 70000 |
- 27 -
COUNTRY | CURRENCY | CODE |
Afghanistan | Afghani | 40401 |
Albania | Lek | 15105 |
Algeria | Algerian dinar | 50105 |
Angola | Kwanza | 50202 |
Argentina | Peso | 30104 |
Armenia | Dram | 16519 |
Aruba | Aruban florin | 35254 |
Australia | Australia dollar | 60089 |
Austria | Schilling | 10189 |
Azerbaijan | Manat | 16527 |
Bahamas | Bahamas dollar | 35319 |
Bahrain | Bahraini dinar | 40703 |
Bangladesh | Taka | 40746 |
Bank of Central African States | CFA franc BEAC | 50000 |
Barbados | Barbados dollar | 30155 |
Belgium | Belgium franc | 10251 |
Belize | Belize dollar | 35718 |
Bermuda | Bermuda dollar | 35602 |
Bhutan | Ngultrum | 40819 |
Bolivia | Boliviano | 30201 |
Botswana | Pula | 50504 |
Brazil | Real | 30309 |
Brunei | Brunei dollar | 41009 |
Bulgaria | Lev | 15202 |
Burma | Kyat | 41106 |
Burundi | Burundi franc | 50806 |
Cambodia | Riel | 41203 |
Canada | Canadian dollar | 29998 |
Cape Verde | Cape Verde escudo | 51209 |
Cayman Islands | Cayman Islands dollar | 36137 |
Central Bank of West African States | CFA franc BCEAO | 50001 |
Chile | Chilean peso | 30406 |
China | Yuan | 41408 |
Colombia | Colombian peso | 30503 |
Comoros | Comoros franc | 51519 |
Congo (Kinshasa) | Congo franc | 51705 |
Costa Rica | Costa Rican colon | 30589 |
Croatia | Kuna | 14214 |
Cuba | Cuban peso | 30708 |
Cyprus | Cyprus pound | 10405 |
Czech Republic | Czech koruna | 15288 |
Denmark | Danish krone | 10502 |
Djibouti | Djibouti franc | 52302 |
Dominican Republic | Dominican peso | 30805 |
East Caribbean | East Caribbean dollar | 38105 |
Ecuador | Sucre | 31003 |
Egypt | Egyptian pound | 57002 |
El Salvador | El Salvador colon | 31089 |
- 28 -
CURRENCY CODES
COUNTRY | CURRENCY | CODE |
Estonia | Estonia kroon | 15407 |
European Union | Ecu | 73288 |
Fiji | Fiji dollar | 60607 |
Finland | Markka | 10707 |
France | French franc | 10804 |
Gambia | Dalasi | 52507 |
Germany | Deutsche mark | 11002 |
Ghana | Cedi | 52604 |
Gibraltar | Gibraltar pound | 11088 |
Greece | Drachma | 11207 |
Guatemala | Quetzal | 31208 |
Guinea | Guinea franc | 52701 |
Guinea-Bissau | Guinea-Bissau peso | 54402 |
Guyana | Guyana dollar | 31305 |
Haiti | Gourde | 31402 |
Honduras | Lempira | 31488 |
Hong Kong | Hong Kong dollar | 42005 |
Hungary | Forint | 15504 |
Iceland | Icelandic Krona | 11304 |
India | Indian | rupee |
Indonesia | Rupiah | 42218 |
Iran | Iranian rial | 42307 |
Iraq | Iraqi dinar | 42404 |
Ireland | Irish pound | 11401 |
Israel | New sheqel | 42501 |
Italy | Italian lira | 11509 |
Jamaica | Jamaican dollar | 31607 |
Japan | Yen | 42609 |
Jordan | Jordanian dinar | 42706 |
Kazakstan | Tenge | 16543 |
Kenya | Kenyan shilling | 53104 |
Korea North | Won | 44407 |
Korea South | Won | 43001 |
Kuwait | Kuwaiti dinar | 43109 |
Laos | Kip | 43303 |
Latvia | Lats | 15601 |
Lebanon | Lebanese pound | 43419 |
Lesotho | Loti | 53155 |
Liberia | Liberian dollar | 53201 |
Libya | Libyan dinar | 53309 |
Lithuania | Litas | 15709 |
Luxembourg | Luxembourg franc | 11703 |
Macao | Pataca | 43508 |
Macedonia FYR of | Denar | 14419 |
Madagascar | Malagasy franc | 53406 |
Malawi | Kwacha | 53503 |
Malaysia | Malaysian ringgit | 43605 |
- 29 -
CURRENCY CODES
COUNTRY | CURRENCY | CODE |
Maldives | Rufiyaa | 43702 |
Malta | Maltese lira | 11819 |
Mauritania | Ouguiya | 53708 |
Mauritius | Mauritius rupee | 53805 |
Mexico | Mexican peso | 31704 |
Moldova | Leu | 16306 |
Mongolia | Tugrik | 43818 |
Morocco | Moroccan dirham | 54003 |
Mozambique | Metical | 54089 |
Nepal | Nepalese rupee | 44202 |
Netherlands | Netherlands guilder | 12106 |
Netherlands Antilles | Netherlands Antilles guilder | 37206 |
New Zealand | New Zealand dollar | 61689 |
Nicaragua | Cordoba | 31801 |
Nigeria | Naira | 54305 |
Norway | Norwegian krone | 12203 |
Oman | Rial Omani | 44105 |
Pakistan | Pakistani rupee | 44709 |
Panama | Balboa | 31887 |
Papua New Guinea | Kina | 61751 |
Paraguay | Guarani | 32107 |
Peru | New sol | 32204 |
Philippines | Philippines peso | 44806 |
Poland | Zloty | 15768 |
Portugal | Portuguese escudo | 12319 |
Qatar | Riyal | 45101 |
Romania | Leu | 15806 |
Russia | Ruble | 16101 |
Rwanda | Rwanda franc | 55018 |
St. Helena | St. Helena pound | 55107 |
Sao Tome & Principe | Dobra | 55204 |
Saudi Arabia | Saudi Arabia riyal | 45608 |
Serbia and Montenegro | New Yugoslavian dinar | 13218 |
Seychelles | Seychelles rupee | 55409 |
Sierra Leone | Leone | 55506 |
Singapore | Singapore dollar | 46019 |
Slovakia | Slovak koruna | 15318 |
Slovenia | Tolar | 14338 |
Solomon Islands | Solomon Islands dollar | 62308 |
Somalia | Somalia shilling | 55603 |
South | Africa Rand | 55719 |
Spain | Spanish peseta | 12505 |
Sri Lanka | Sri Lanka rupee | 41319 |
Sudan | Dinar | 56103 |
Suriname | Suriname guilder | 37702 |
Swaziland | Lilangeni | 56219 |
Sweden | Swedish krona | 12602 |
Switzerland | Swiss franc | 12688 |
- 30 -
CURRENCY CODES
COUNTRY | CURRENCY | CODE |
Syria | Syrian pound | 46205 |
Taiwan | New Taiwan dollar | 46302 |
Tanzania | Tanzanian shilling | 56405 |
Thailand | Baht | 46418 |
Tonga | Pa'anga | 62448 |
Trinidad and Tobago | Trinidad and Tobago dollar | 32409 |
Tunisia | Tunisian dinar | 56707 |
Turkey | Turkish lira | 12807 |
Uganda | Uganda shilling | 56804 |
Ukraine | Hryvna | 16403 |
United Arab Emirates | Dirham | 46604 |
United Kingdom | Pound sterling | 13005 |
United States | United States dollar | 01007 |
Uruguay | Peso Uruguayo | 32603 |
Vanuatu | Vatu | 61603 |
Venezuela | Bolivar | 32719 |
Vietnam | Dong | 46906 |
Western Samoa | Tala | 62618 |
Yemen | Yemeni rial | 47104 |
Zambia | Kwacha | 57207 |
Zimbabwe | Zimbabwean dollar | 54704 |
- 31 -
APPENDIX C
INDUSTRY CODES
Manufacturing
01 Aerospace
02 Beverages
03 Cars and Trucks
04 Chemicals
05 Clothing, Textiles and Shoes
06 Computers and Related Products
07 Construction equipment
08 Electrical and Electronic Equipment, except computers
09 Food and Kindred Products
10 Industrial Machinery
11 Lumber and Wood Products
12 Paper and allied products
13 Petroleum Refining and related industries
14 Pharmaceuticals and Medicines
15 Printing and Publishing Equipment
16 Rubber and Plastic Products
17 Steel
18 Tobacco Products
19 Misc. Manufacturing
Transportation and Utilities
20 Air Transportation
21 Ground Transportation
22 Rail Transportation
23 Water Transportation
24 Electric Power Generation and Transmission
25 Oil and Natural Gas Distribution
26 Other
Financial Services
30 Depository Institutions (Banks, Trust Companies,
etc.)
31 Nondepository Credit Institutions
32 Mutual Funds, Investment Trusts, etc.
33 Securities and Commodities Broker/Dealers
34 Insurance Companies
35 Pension Funds
36 Foundations and Endowments
37 Other
- 33 -
Agriculture and Mining
40 Agriculture, Forestry and Fishing
41 Coal Mining
42 Oil and Gas Extraction
43 Metal Mining
44 Nonmetallic Minerals, except Oil
Communications and Information Processing
50 Computer Software Development
51 Information and Data Processing Services
52 Motion Picture and Sound recording Industries
53 Printing and Publishing
54 TV and Radio
55 Wired and Cellular Telecommunications
56 Satellite Telecommunications
57 Other
Trade
60 Wholesale Trade
61 Retail Trade (Department Store, Grocery Stores, etc.)
Government
70 Federal
71 Local
72 Government Sponsored and Owned Enterprises
73 International Organizations
Miscellaneous
80 Multi-Industry Conglomerates
81 Construction
82 Health Services
83 Hotels, Motels, Restaurants
84 Professional and Technical Services
85 Real Estate Companies
86 Research
87 Misc.
- 34 -
APPENDIX D
SECURITY ID CODING SYSTEMS
CODE | ISSUER | SYSTEM NAME |
01 | ISO | ISIN (International Security Identification Number) |
02 | CEDEL | Cedel Code |
03 | Euroclear | Euroclear Code |
04 | Euroclear/Cedel | Common Code |
05 | Australia | ASX Code |
06 | Austria | WPK |
07 | Belgium | SVM Code |
08 | Brazil | National Stock Exchange Assn. |
09 | Brazil | Rio de Janeiro Stock Exchange |
10 | Brazil | Sao Paulo Stock Exchange |
11 | Denmark | Fondskode |
12 | France | SICOVAM |
13 | Germany | WKN |
14 | Hong Kong | Hong Kong Stock Exchange Code |
15 | Italy | UIC Code |
16 | Italy | ABI Code |
17 | Japan | SICC Code |
18 | Japan | TSE Code (Tokyo Stock Exchange Code) |
19 | Korea | Korean Stock Exchange Clearing Code |
20 | Mexico | Mexican Stock Exchange Code |
21 | Netherlands | Amsterdam Stock Exchange Clearingcode |
22 | New Zealand | New Zealand Stock Exchange Code |
23 | Norway | Modified ISIN (VPS) |
24 | Portugal | Lisbon Stock Exchange Code |
25 | Portugal | Oporto Stock Exchange Code |
26 | South Africa | Clearing House Code (Johannesburg Stock Exchange) |
27 | Spain | CNMV Code |
28 | Sweden | VPC Number |
29 | Switzerland | VALOR (Valorennummer) |
30 | Thailand | Stock Exchange of Thailand |
31 | United Kingdom | SEDOL |
32 | United States | CUSIP |
33 | United States | CINS |
98 | Internally-Generated Code | |
99 | Other Coding System |
- 35 -
APPENDIX E
Magnetic Tape or Cartridge Format
Form-1
Identification Record
Positions |
Content |
Character Type |
Form-1 Number |
Item Format |
1-2 | "10" | Constant | "10" | |
3-9 | Control Number | Numeric | 1 | N7 |
10-59 | Company Name | Alphanumeric | 2 | A50 |
60-109 | Street Address | Alphanumeric | 3 | A50 |
110-139 | City | Alphanumeric | 4 | A30 |
140-141 | State P.O. Abbreviation | Alphanumeric | 5 | A2 |
142-146 | Zip Code | Numeric | 6 | N5 |
147 | Reporting Status | Alphanumeric | 7 | N1 |
148-149 | Industry Code | Numeric | 8 | N2 |
150-156 | Number of Form-2 Records | Numeric | 9 | N7 |
157-170 | Value of Priced Equities | Numeric | 10 | N14 |
171-184 | Value of Priced Debt | Numeric | 11 | N14 |
185-198 | Shares of Unpriced Equity | Numeric | 12 | N14 |
199-212 | Face Value of Unpriced Debt | Numeric | 13 | N14 |
213-215 | Number of Form-3 Records | Numeric | 14 | N3 |
216-229 | Value of Form-3 Records | Numeric | 15 | N14 |
230-238 | Unused |
- 37 -
Magnetic Tape or Cartridge Format
Form-2
Detail Record
Positions |
Content |
Character Type |
Form-2 Number |
Item Format |
1-2 | "11" | Constant | "11" | |
3-9 | Control Number | Numeric | 1 | N7 |
10-16 | Sequence Number | Numeric | 2 | N7 |
17-28 | Security ID Code | Alphanumeric | 3 | A12 |
29-30 | Security ID Coding System | Numeric | 4 | N2 |
31 | Ownership Code | Numeric | 5 | N1 |
32-33 | Security Type | Numeric | 6 | N2 |
34 | Private/Government Code | Alphanumeric | 7 | A1 |
35 | Depositary Receipt Y/N | Alphanumeric | 8 | A1 |
36-85 | Name of Issuer | Alphanumeric | 9 | A50 |
86-135 | Security Description | Alphanumeric | 10 | A50 |
136-147 | Dollar Value Held | Numeric | 11 | N12 |
148-162 | Market Price in US$ | Numeric | 12 | N15.6 |
163-174 | Face Value/Number of Shares | Numeric | 13 | N12 |
175-186 | Original Face Value | Numeric | 14 | N12 |
187-191 | Currency of Denomination | Numeric | 15 | N5 |
192-204 | Exchange Rate | Numeric | 16 | N13.7 |
205-216 | Amount on Loan or Repo | Numeric | 17 | N12 |
217 | Loan/Repo Indicator | Alphanumeric | 18 | A1 |
218-222 | Country of Issuer | Numeric | 19 | N5 |
223-230 | Issue Date | Numeric | 20 | N8 |
231-238 | Maturity Date | Numeric | 21 | N8 |
- 38 -
Physical Specifications
Use 1600 or 6250 BPI phase encoded 9-track tape or
�" IBM 3480 compatible tape cartridges
ASCII or EBCDIC
238 character records blocked 40 logical records, thus a physical
record
size of 9520 bytes
External Label (Affix to reel, not to cover)
Company Name and Address
Control Number
Data Processing Contact Name and Telephone Number
Tape Identification Number (as identified in your records)
Creation Date
Contents: 1997 Outbound Portfolio Investment Survey
Tape Layout
Label (Optional)
Tape Mark
Identification Record
Detail Records
Tape Mark
Data Specifications
All numeric fields should be unpacked, unsigned,
right-justified with leading zeroes.
Decimal points should be explicitly entered in the data.
A format specification of N13.3 means 9 digits to the left of the
decimal
point, a decimal point, and three digits to the
right of the decimal point.
Alphanumeric data should be left-justified and blank filled.
General Information
A paper copy of Form-1 must also be submitted. Form-3 records can only be submitted on
the form supplied or on a paper submission which contains the same information in the same
order as the form.
A copy of the tape submitted and all information used to create the tape should be saved for a period of two years from the date of submission.
Each tape should be accompanied by a tape dump which includes the tape label (if present), the identification record, and at least the first ten detail records.
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APPENDIX F
DISKETTE FORMAT
[Not available in electronic files]
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