Data quality, concepts and methodology

Summary methodology for the production of quarterly international investment positions

Quarterly position data for international investment positions are produced from 1990 onward. The methodology used to construct these series is summarized as follows:

Direct investment

Annual surveys of the book value of direct investment form the basis of the benchmark estimates for the year-end positions from 1989 to 2001. Quarterly positions between these benchmarks and for periods subsequent to the latest benchmark data are estimated using quarterly flows at market value adjusted to book value. These flows include reinvested earnings. 

Portfolio investment

Assets: the Canadian Portfolio Investment Survey (CPIS) provides a benchmark for annual positions at market value that are converted to book values using price to book ratios. Quarterly positions between these benchmarks and for periods subsequent to the latest benchmark data are estimated using quarterly flows at market value adjusted to book value.

Liabilities: A detailed system is used to process data on Canadian bonds and money market instruments. Positions are derived on an issue-by-issue basis and can be automatically produced on a quarterly basis. Quarterly positions for Canadian equities are derived using quarterly flows adjusted for market to book valuation.

Other investment

Outstanding loans issued by banks and governments are available on a quarterly basis. Loans from other corporations are derived from annual surveys and quarterly flows. Deposits are also available from the banks on a quarterly basis. Official international reserve assets are available on a monthly basis. The other miscellaneous accounts are based on annual surveys adjusted to quarterly positions using quarterly flows.

Currency fluctuations

In addition, outstanding positions for all accounts denominated in foreign currency are re-evaluated each quarter to reflect changes in exchange rates.