Foreign Portfolio Investment

Foreign portfolio investment reflects investment in which the investor owns less than 10% of the voting shares of an enterprise residing in a different economy than the portfolio investor.

Foreign portfolio investment statistics recorded in the financial account of the balance of international payments cover transactions in Canadian and foreign stocks, bonds and money market securities exchanged between non-residents and residents of Canada. Foreign portfolio investment in Canadian securities includes additional dimensions, such as trade in outstanding issues, new issues, retirements, and changes in interest payable, and is further segmented by issuing sector and currency and by major geographic area. In order to be included in foreign portfolio investment a change in ownership (for example, in securities) must occur between residents and non-residents. These series form an integral part of Canada's balance of international payments, and are released on a monthly basis.

Foreign holdings of Canadian securities (portfolio liabilities) and Canadian holdings of foreign securities (portfolio assets), resulting from the accumulation of transactions recorded in the financial account combined with revaluations due to fluctuations in prices and exchange rates, as well as other changes in volumes, are recorded as Canada’s quarterly international investment position. Portfolio liabilities are segmented by sector of issuer and major country-region of foreign holders while portfolio assets are segmented by country of non-resident issuers of securities held by Canadians, as required by international standards (International Monetary Fund’s "Coordinated Portfolio Investment Survey").

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