BMA: Coordinated Portfolio Investment Survey
For the first time, the Bermuda Monetary Authority has today [Dec 23] published the results of Bermuda’s Coordinated Portfolio Investment Survey [CPIS].
The BMA said, “The CPIS, conducted annually under the auspices of the International Monetary Fund [IMF], collects information on economies’ cross-border holdings of portfolio investment securities.
“The Authority’s CPIS report shows where Bermuda financial services entities invest assets and in what form, as well as which countries are investing in Bermuda. It aims to provide the Authority’s stakeholders with a more convenient and comprehensible source of information on Bermuda’s foreign portfolio holdings.
Key findings include:
- Bermuda financial services entities have a sizeable and significant share of foreign portfolio holdings [65% of Bermuda’s financial services assets] amounting to US $516 billion in 2014, a 16% increase from 2013, attributed to the growth of the financial services industry in Bermuda;
- Foreign portfolio holdings in Bermuda consist mainly of debt securities, amounting to US $423 billion, representing 82% of total holdings;
- Geographically, US holdings dominated Bermuda’s foreign portfolio investment assets, accounting for 52% of total holdings; issuances by Canada and the UK accounted for 5% each; Cayman Islands, Ireland and Luxembourg followed with a 4% share each, with remaining countries’ shares of 2% or less each; and
- Bermuda’s foreign portfolio holdings are broken down by subsectors – insurance, investment funds and banking – with the insurance subsector heavily dominating foreign portfolio holdings with an ownership share of 82% [or US $426 billion]; investment funds were the second-largest subsector accounting for 16%, followed by banking with 2%.
“Overall, the CPIS exercise provides countries with systematic estimates of their foreign portfolio assets by security type and geographical allocation, and enhances the quality of statistics on global capital flow.
“Bermuda’s participation in the IMF’s CPIS exercise contributes to an improved understanding of the jurisdiction as an international financial center and re-emphasises Bermuda’s commitment to a high standard of transparency.
“With currently 78 countries participating, the IMF has conducted the CPIS since 1997. Bermuda has participated in the CPIS on a voluntary basis since 2001. To access the 2014 report, click here [PDF] or visit the ‘Publications’ section [see: BMA Surveys] on the Authority’s website at www.bma.bm.”
