Canadian portfolio investment abroad, 2015
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Released: 2016-06-21
Canadian investors' holdings of foreign securities reached $1,682.0 billion at the end of 2015, up 21.2% from 2014. Holdings in the United States, Europe, and Asia and Oceania all advanced at a strong pace in 2015.
Canadian portfolio investment abroad accounted for over 40% of Canada's total international assets at the end of 2015, about the same share as Canadian direct investment abroad.
The value of Canadian portfolio investment abroad posted a fourth straight year of significant growth, with investment in the United States accounting for about two-thirds of the increase over this period. Furthermore, Canadian holdings of foreign securities have almost tripled since the end of 2008, following the global financial crisis.
Overall, the upward revaluation effect of a depreciating Canadian dollar against most major currencies, as well as acquisitions of $60.2 billion of foreign securities by Canadian investors, contributed to the growth of these assets. The Canadian dollar depreciated 16.2% against the US dollar, 6.6% against the euro, 11.5% against the British pound and 15.9% against the Japanese yen in 2015.
Chart 1
Canadian holdings of foreign securities
On an instrument basis, holdings of foreign equities were up 18.0% to $1,294.7 billion at the end of 2015. At the same time, foreign debt securities increased 33.5% to $387.3 billion. Record acquisitions of US bonds in 2015 contributed to the increase.
Holdings of US securities continue to increase at a strong pace
Canadian holdings of US securities were up 24.2% to $1,036.0 billion in 2015, following a similar increase in 2014. The gain in 2015 reflected the impact of the depreciating Canadian dollar against the US dollar, as well as net acquisitions of US securities during the year, moderated by lower stock market prices. The US stock market declined 1.8% in 2015. The United States continued to be the top investment destination for Canadian portfolio investors, with a 62% share of all foreign holdings at the end of the year. This share has steadily increased since the global financial crisis.
Holdings of European securities were up 18.2% to $356.6 billion at the end of 2015. The United Kingdom was still the main investment destination in Europe, with Canadian portfolio assets totalling $107.4 billion. Holdings in all other major European countries increased significantly in 2015, notably in France, Germany, Switzerland and Netherlands. All these countries posted growth of over 20% during the year.
Chart 2
Canadian holdings of foreign securities, by major geographic area
Holdings of securities in Asia and Oceania were up 20.5% to $206.1 billion in 2015. The value of Japanese securities held by Canadian investors continued to increase, reaching $73.8 billion. Chinese securities were up 42.5% to $26.8 billion following significant growth in 2014. The upward revaluation resulting from a declining Canadian dollar against the yen and the yuan, combined with higher stock market prices, contributed to the increase in portfolio holdings in Japan and China in 2015.
Note to readers
Canadian portfolio investment abroad is based on an annual survey of Canadian investors of securities that is used, along with other sources, to generate a detailed geographical breakdown for holdings of foreign securities.
Foreign securities cover equity and debt instruments issued by non-residents. Securities denominated in foreign currency are converted to Canadian dollars at year end. The survey collects information on Canadian holdings of foreign securities at year-end, at market value and broken down by country of issue. In this context, portfolio investment can be seen as investment undertaken primarily for the sake of investment income or capital gains. This investment excludes cross-border direct investment and reserve assets, which are other components of the international accounts.
Contact information
For more information, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca).
To enquire about the concepts, methods or data quality of this release, contact Francis Salifu (613-797-0651; francis.salifu@canada.ca), International Accounts and Trade Division.
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