| Information about the Managed Funds Survey |
Availability
| Valid From: .. | 12/31/1995 |
| To: .. | Ongoing |
| Frequency: .. | Quarterly |
Design
Purpose: To measure the stock, net transactions and income flows on financial assets held abroad by New Zealand fund managers, for incorporation into the balance of payments (BOP) and international investment position (IIP) statistics.
General Information ..Background
The Managed Funds Survey (MFS) is a quarterly survey which commenced in the September quarter 1995. The survey was managed by FPG Research Ltd (now called Morningstar) on behalf of the Reserve Bank of New Zealand (RBNZ) up until the December quarter 1998. In addition to collecting data for the RBNZ, the MFS has also been collecting data for Statistics New Zealand (SNZ), namely:
- the stock and net transactions on New Zealand's overseas assets held via New Zealand fund managers;
- the income earned by New Zealand from these overseas assets; and
- the currency in which the assets are denominated.
SNZ has incorporated the MFS data into New Zealand's BOP and IIP statistics from the March 1996 quarter onwards. It is a significant data source for the Portfolio investment (dr) and Other Investment (dr) components of BOP and IIP statistics.
The contract for the running of the survey by FPG Research Ltd expired at the end of 1998 and the RBNZ took over the operation of the survey since then. RBNZ and SNZ reviewed the data requirements for the whole survey and a revised collection was implemented in the June 99 quarter.
SNZ altered its data requirements, so that they complied with the latest international statistical standards. At the time, the SNZ data collection was formalised as being under the jurisdiction of the Statistics Act 1975.
Target Population
The variables of interest are the stock of financial assets, net transactions during the quarter and the income accrued on the assets.
Therefore the target population consists of New Zealand fund managers who invest offshore.
Sample Design
A purposive sample design was used to draw the sample population for this survey. Past data was extracted and grouped into the portfolio investment and Other investment aggregates. The data was then ranked from highest to lowest contributing fund manager and a 95% cutoff was applied. Respondent consolidation reporting arrangements were then considered and some additional respondents were included in the sample. At the initial sample design phase the population was 25, however, since then there has been some rationalisation and mergers in the managed funds industry. The current population stands at 17.
Output Variables
Output variables are pieces of individual information that can be extracted from the survey/output data. Often output variables can be cross tabulated with other output variables, for example sales by industry classification. The list below contains all current and past output variables which have been released for this survey/output.
| Variable Name | Description |
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| Portfolio investment | Portfolio investment covers transactions in equity securities and debt securities; the latter are sub-sectored into bonds and notes, money market instruments, and financial derivatives (such as options) when the derivatives generate financial claims and liabilities. |
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| Other investment | Other investment covers short- and long-term trade credits; loans, currency and deposits and other accounts receivable and payable. Transactions covered under direct investment are excluded. |
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| Portfolio investment income | Portfolio investment income comprises income transactions between residents and non-residents and is derived from holdings of shares, bonds, notes, and money market instruments and associated with financial derivatives. |
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| Other investment income | Other investment income covers interest receipts and payments on all other resident claims (assets) on and liabilities to non-residents, respectively. Interest on assets comprises interest on long- and short-term loans, on deposits, on other commercial and financial claims. |
Changes in Output Variables over time
Guide to Interpreting Data
Summary of Changes to Survey/Output ..The new information which is available from the redesigned questionnaire includes:
- greater financial instrument breakdowns;
- the net transaction data;
- data on financial derivatives; and
- the currency profile of the closing stock of the assets.
The information on financial derivatives and the instrument breakdown, are requirements of the new statistical standards set out by the International Monetary Fund (IMF). The currency profile of assets are required to match the corresponding information currently collected on New Zealand's overseas financial liabilities. The transactions data is to be collected and included in the BOP statistics and as such it will replace the current office estimation method. The latter consists of taking the net change in the stock position which is an incorrect proxy because it includes price and exchange rate changes which should be excluded from transactions data.
Usage and Limitations of the Data ..
Related Data Sources ..MFS income data contributes to Investment Income which is a component of the income balance in the Current Account of the Balance of Payments.
Sampling Errors ..The non-sampled population has been included in the Annual International Investment Survey. The annual survey results are used to update the non-sampled estimates.
Non-sampling errors Non-sampling errors in the survey data may result from respondent error, mistakes made during processing survey results and non-response imputation. The department adopts procedures to detect and minimise these types of errors but they may still occur and they are not quantifiable.
Caveats on Release ..
Catalogue & Reference Numbers
Other Comments
Classification(s) used
Glossary of Terms
| Term | Description |
| |
| Equity Securities | Equity securities cover all instruments and records acknowledging, after the claims of all creditors have been met, claims to the residual value of the enterprise.
Example:
- ordinary shares;
- stocks;
- participating preference shares;
- shares/units in mutual funds, investment trusts, and unit trusts;
- equity trusts.
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| Fixed Interest Securities | Fixed interest securities refer to bonds, debentures, notes, etc. They usually give the holder the unconditional right to a fixed money income or contractually determined variable money income and have an original maturity of more than one year.
Example
- bonds such as treasury, zero-coupon, stripped, deep discounted, currency linked, floating rate, equity-related, and eurobonds;
- asset-backed securities such as mortgage backed bonds, collaterised mortgage obligations;
- index-linked securities (e.g. property index certificates);
- non-participating preference shares;
- floating rate notes (FRN) such as perpetual notes, variable rate notes, structured FRN;
- euro medium-term notes;
- bonds with optional maturity dates, the latest of which is more than one year after issue;
- debentures;
- negotiable certificates of deposits with contractual maturity of more than one year;
- bearer depository receipts denoting ownership of debt securities issued by non-residents.
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| Money Market Instruments | Money market instruments generally give the holder the unconditional right to receive a stated fixed sum of money on a specified date. These instruments usually are traded, at a discount, in organised markets; the discount is dependent upon the interest rate and the time remaining to maturity.
Example
- treasury bills;
- commercial and finance paper;
- banker's acceptances;
- negotiable certificates of deposits with a contractual maturity of one year or less;
- short-term notes issued under notes issuance facilities.
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| Cash and Deposits | Cash consists of notes and coin that are in circulation. Deposits comprise both transferable and other deposits. Transferable deposits consist of deposits that are exchangeable on demand at par without restriction. |
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| Loans and Placements | Loans comprise those financial assets created through the direct lending of funds by a creditor to a debtor through an arrangement in which the lender receives a non-tradable document or instrument. |
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| Financial Derivatives | Derivatives are financial instruments whose value is derived from the underlying physical commodity or financial instrument. As such, their price is based on the price of the instrument on which they are based.
Financial derivatives involve:
- future delivery, receipt or exchange of financial items such as cash or another derivative instrument, or
- future exchange of real assets for financial items where the contract may be tradable and have market value.
Example
- options;
- interest rate swaps;
- cross currency interest rate swaps;
- other derivative contracts such as
- futures;
- forward rate agreements.
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Contact Details
Liability
Statistics New Zealand gives no warranty that the information or data supplied contains no errors. However, all care and diligence has been used in processing, analysing and extracting the information. Statistics New Zealand shall not be liable for any loss or damage suffered by the customer consequent upon the use directly, or indirectly, of the information supplied in this product.