|
|
| Information about the Quarterly International Investment Survey |
Availability
| Valid From: .. | 06/30/2000 |
| To: .. | Ongoing |
| Frequency: .. | Quarterly |
Design
Purpose: To measure:
1) the foreign financial assets and liabilities of New Zealand residents - both the stock and flows;
2) the income that New Zealand earns/pays from its holdings of foreign assets/foreign liabilities; and
3) the maturity profile, currency and country risk exposure of these foreign assets/foreign liabilities.
This data is to be incorporated into the balance of payments (BOP) and international investment position (IIP) statistics.
General Information ..
Background
For many years users of the balance of payments (BoP) statistics recommended that SNZ compile and publish a full financial account and international investment position (IIP) statement on a quarterly basis e.g. the Report of the Review Committee on Macroeconomic Statistics 1991 and the Survey of Users of BOP Statistics 1994.
In 1995 the International Monetary Fund (IMF) released the Special Data Dissemination Standards (SDDS) to guide members in the provision of their economic and financial data to the public. One of the requirements of this standard is that full BoP statements are to be produced on a quarterly basis. While the IIP requirement is for an annual publication, a quarterly statement is highly encouraged. As a result of the recent Asian financial crisis the SDDS is being further enhanced to include more specific requirements for overseas debt and reserves statistics.
In addition to requiring full financial account statistics on a quarterly basis, the statistics were also required to be compiled and presented on the basis of the latest IMF guidelines i.e. the fifth edition of the Balance of Payments Manual (BPM5) which was released by the IMF in 1993.
Government funding was therefore provided for Statistics New Zealand to:
- develop and implement the necessary data collection, processing and dissemination processes to enable the publication of a full BOP financial account and IIP statement on a quarterly basis by 30 June 2001;
- implement the IMF's guidelines for: 1) the fifth edition of the BOP Manual relating to the financial account and IIP statements; and 2) the SDDS; and
- introduce quality and timeliness improvements to the financial account and IIP statistics.
Thus the Quarterly International Investment Survey (QIIS) has been developed so that the above objectives can be met.
The need for the survey
Prior to the June 2000 quarter, much of the financial account data for the BOP and IIP statistics were collected on an annual basis via the Annual Capital Investment Survey (CIS). The latter collected data on the basis of the now out of date, fourth edition of the BOP Manual.
The IMF's requirements for quarterly financial account data on a BPM5 basis meant that the existing collections were inadequate. Various alternative data sources (eg tax, registry managers, the NZ Stock Exchange etc. were investigated but whilst they were found to be useful for some validation purposes, these could not replace the direct surveying of New Zealand enterprises. Thus the QIIS questionnaires were developed. These have replaced the Annual Capital Investment Survey, the Annual Total Overseas Debt Survey and the Quarterly International Investment Income Survey.
Target Population
The QIIS target population is the entire New Zealand resident population (i.e. businesses and organisations located in New Zealand and/or individuals ordinarily residing in New Zealand).
Non-residents include businesses and organisations located outside New Zealand and/or individuals who ordinarily reside outside New Zealand.
Population covered
The QIIS survey population used is defined by the Annual Capital Investment Survey data for the year ended 31 March 99. (CIS99).
The CIS99 survey population is drawn from the Business Frame (BF), only those enterprises which are defined as being ‘economically significant’ according to the BF are included. In summary, the survey population includes:
- Enterprises with greater than $30,000 annual GST expenses or sales
- Enterprises with more than 2 full time equivalent paid employees
- All enterprises in GST exempt industries, other than residential property leasing/rental
- All enterprises that are part of a group
- All enterprises that are new GST registrations, registered as compulsory/special/forced
- All enterprises registered for GST with a geographic unit classified to agriculture/forestry
In order to reduce the respondent load and the number of questionnaires sent out for CIS99 an investigation was undertaken to see whether or not GST sales information and the number of full time employees on the BF could be used to remove small contributors to CIS. As a result of the investigation, non significant enterprises with missing GST sales who have less than 11 FTEs, and enterprises with GST sales less than 5 million were removed from the CIS99 population. Thus the post-out population size for CIS99 was approximately 3000 enterprises.
Statistical Unit
The statistical unit of sample is the enterprise. If a group top enterprise (GTE) is able to get reports from its subsidiary companies which were selected into the QIIS sample then the GTE is the statistical unit, otherwise the enterprise is the statistical unit.
Selection Unit
The unit of sample selection is the enterprise. If a group top enterprise (GTE) is able to get reports from its subsidiary companies which were selected into the QIIS sample then the GTE is the data selection unit, otherwise the enterprise is the selection unit.
Collection Unit
The unit of data collection is the enterprise. If a group top enterprise (GTE) is able to get reports from its subsidiary companies which were selected into the QIIS sample then the GTE is the data collection unit, otherwise the enterprise is the data collection unit.
Undercoverage
The non-sampled enterprises component will be estimated.
The main area of known undercoverage is that of the investment activity that New Zealand resident individuals or households have directly with non-residents. A New Zealand individual, for example, could purchase shares in a non-resident enterprise, directly (eg via the Internet) or through a non-resident intermediary party. At present such transactions are not captured because we are not surveying individual persons and households.
Estimates for this undercoverage are not made, although Statistics New Zealand is currently investigating ways to do so. The assumption has been that the magnitudes of this activity are small, as most individuals or households use intermediaries such as New Zealand fund managers and banks, when undertaking such transactions. If these intermediaries are used then the transactions will be captured via QIIS, or the Managed Funds Survey.
Population and Sample Size
There are two questionnaires for this survey. One for the banking sector and the other for the corporate sector. An excel version of these questionnaires has also been developed.
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 |
| Investment Income | This item measures the income accruing to New Zealand investors from their investments overseas (credits) and the income accruing to overseas investors from their investments in New Zealand (debits). Investment income is recorded by functional type i.e. direct, portfolio and other. |
| Direct Investment | Direct investment is investment made to acquire a lasting interest in a company. The purpose of the investment is to gain an effective voice in the management of the company. The entity or group of associated entities that makes the investment is termed the direct investor. The company (for example, a branch or a subsidiary) in which the direct investment is made is referred to as a direct investment enterprise.
An "effective voice" in the New Zealand context is assumed when 10 percent or more of the voting shares of a direct investment enterprise are owned by a direct investor. (Note: prior to the June 2000 quarter the threshold was 25 percent or more).
Direct investment is an asset for the economy of the direct investor and a liability for the economy in which the direct investment enterprise operates. The investor and the enterprise may have claims on each other but these are recorded net of each other in the statistics.
|
| Portfolio Investment | Portfolio investment covers transactions in equity securities and debt securities: the latter are subclassified into bonds and notes and money market instruments. Transactions covered under direct investment and reserve assets are excluded.
In contrast to direct investors, portfolio investors are primarily concerned with the safety of their capital, the likelihood of an appreciation in their capital value, and the return they will obtain from their investment. |
| Other Investment | Other investment comprises trade credits, loans, currency and deposits and other accounts receivable and payable. Transactions covered under direct investment, portfolio investment or reserves are excluded. |
| Reserve Assets | Reserves comprise the financial claims on non-residents which are available to the Reserve Bank of New Zealand, and the New Zealand Treasury. The principal holder of New Zealand's reserves is the Reserve Bank of New Zealand. |
Net Errors and Omissions
Net Borrowing | Net errors and omissions is a balancing item.
Total borrowing by New Zealand direct investment enterprises from their foreign direct investors less the New Zealand direct investment enterprises lending to their foreign direct investors. |
| Net International Investment Position | The difference between the level of foreign investment in New Zealand (liabilities) and the level of New Zealand's investment abroad (assets). |
| Net Lending | Total lending by the New Zealand direct investor to its overseas direct investment enterprises less the borrowing of the New Zealand direct investor from its overseas direct investment enterprises. |
Changes in Output Variables over time
Guide to Interpreting Data
Summary of Changes to Survey/Output ..Not applicable.
Usage and Limitations of the Data ..The data is one of the measures used to monitor the performance of the New Zealand economy.
Related Data Sources ..The Quarterly Nominees Survey
Quarterly Official Sector Collection
Managed Funds Survey
Sampling Errors ..Sampling errors cannot be calculated due to the non-probability sampling method used.
Non-sampling errors Non-sampling errors in the survey may result from errors in the sample frame, respondent error, mistakes during processing survey results and non-response imputation. The departments adopts procedures to detect and minimise these types of errors but they still occur and they are not quantifiable.
Caveats on Release ..
Catalogue & Reference Numbers
Other Comments
Classification(s) used
Glossary of Terms
 | |
| |
| Term | Description |
| |
| At-Call Deposits | At-call deposits are deposits that are payable on demand. |
| |
| Bonds & notes | Bonds and notes are financial instruments that give the holder the unconditional right to a fixed money income or a contractually determined variable money income (payment of interest is not dependent upon the earnings of the debtor). With the exception of perpetual bonds, bonds and notes also provide the holder with the unconditional right to a fixed sum as a repayment of the principle on a specified date or dates. |
| |
| Borrowing | Borrowing refers to funds and/or goods and services received on credit. Borrowing instruments comprise: loans, bills, bonds, deposits, accounts payable and domestically issued securities. |
| |
| Current Account Deposits | Current account deposits are those deposits that are payable on demand and transferable by cheque or otherwise for making payments. They also include deposits that may not be nominally transferable but that are viewed as substitutes for transferable deposits. Included is foreign currency in the form of cash and travellers cheque. |
| Debt Securities | Debt securities cover: 1) bonds, debentures, notes etc.; and 2) money market or negotiable debt instruments. |
Direct Investment
| Direct investment in the balance of payments is investment made to acquire a lasting interest in a company. The purpose of that investment is to gain an effective voice in the management of the company.
The entity or group of associated entities that makes the investment is termed the direct investor.
The company (a branch or a subsidiary) in which the direct investment is made is referred to as a direct investment enterprise.
An "effective voice" in the New Zealand balance of payments is assumed when 10** percent or more of the voting shares of a direct investment enterprise are owned by a direct investor.
Direct investment is an asset for the economy of the direct investor and a liability for the economy in which the direct investment enterprise operates. The investor and the enterprise may have claims on each other but these are recorded net of each other.
** prior to the June 2000 quarter, this threshold was 25 percent or more. |
| |
Equity
Financial Derivatives
Interest Accrued | Equity refers to the provision of funds by an investor, in exchange for an ownership interest in a company. Ordinary shares are an example of equity capital.
Financial derivatives are based on other products, either financial or real, or prices associated with products, and which involve: 1) future delivery, receipt or exchange of financial items such as cash or another derivative instrument, or 2) future exchange of real assets for financial items where the contract may be tradable and have market value.
Interest accrued refers to the interest that accrued on all financial instruments, irrespective of contractual payments. |
| |
| Lending | Lending refers to the provision of funds and/or goods and services on credit. Lending instruments comprise: loans, bills and bonds, deposits and accounts receivable. |
| |
| Liabilities | Liabilities are what we owe non-residents. These claims can be in the form of equity, accounts payable, loans, bills and bonds, deposits, and domestically issued securities. |
| |
| Loans | Loans are direct agreements between lenders and borrowers. They involve the transfer of money to the borrower and the repayment to the lender over time. Loans include secured and unsecured loans, overdrafts, roll-over loans, revolving credit advances and non-marketable debentures and notes. |
| |
Long Term
Money Market Instruments
| Long-term refers to an original contractual maturity period of more than one year.
Money market instruments are securities generally giving the holder the unconditional right to receive a stated, fixed sum of money on a specified date. These instruments are usually traded at a discount in organised markets. |
| |
| |
| |
| New Zealand Residents | New Zealand residents are those individuals and companies physically located in New Zealand.
Included are the New Zealand located subsidiaries, branches, associates and other affiliates of foreign companies.
Foreign embassies are not considered residents of New Zealand. |
| |
| New Zealand Territory | The land which lies within our political frontiers, and also any international waters over which New Zealand has exclusive rights. |
| Non-residents | Non-residents are those individuals and companies physically located outside of New Zealand. The overseas located subsidiaries, branches and associates of New Zealand enterprises are also non-residents. |
| Official Reserve Assets | Official reserve assets are the foreign exchange assets and international investments of the Government and the Reserve Bank. |
| |
Official Sector
Other Financial Assets
Other Financial Liabilities
Other Investment
Permanent Debt Assets
Permanent Debt Liabilities | The official sector includes the Reserve Bank of New Zealand, The Treasury and government departments.
Other financial assets include items not classified as bonds and notes, money market instruments, trade credits, loans, current account or at-call deposits, or financial derivatives. Included are such things as: overdue accounts receivable other than trade credits, time deposits etc.
Other financial liabilities include items not classified as bonds and notes, money market instruments, trade credits, loans, current account or at-call deposits, or financial derivatives. Included are such things as: overdue accounts receivable other than trade credits, time deposits etc.
Other investment comprises of trade credits, loans, currency and deposits and other accounts receivable and payable. Transactions covered under direct investment, portfolio investment or reserves are excluded.
Permanent debt assets are long term, non-commercial financing arrangements extended by New Zealand banks to their overseas parent/affiliates.
Permanent debt liabilities are long term, non-commercial financing arrangements extended by overseas banks to their New Zealand affiliates. |
| |
| Portfolio Investment | Portfolio investment covers transactions in equity securities and debt securities: the latter are subclassified into bonds and notes and money market instruments. Transactions covered under direct investment and reserve assets are excluded. |
| |
| Private Sector | The private sector consists of companies, financial institutions, producer boards, state owned enterprises (SOEs) and local government organisations. Households and individuals are excluded. The private sector is equivalent to the other sector in the total overseas debt statistics. |
| |
Reinvested Earnings
| Reinvested earnings are the direct investors' share of earnings from direct investments that are not distributed to owners. These earnings (or losses as the case may be) are recorded in the current account of the balance of payments under international investment income. They are also recorded in the financial account under direct investment, since they represent an increase in investment (or decrease in investment in the case of losses). |
| |
Short-term
Trade Credits
| Short-term refers to an original contractual maturity period of one year or less.
Trade credits consist of claims and liabilities arising from the direct extension of credit by suppliers and buyers for goods and services transactions and advance payments for work that is in progress.
|
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.
|
|