Cross-border investments rose in 2010 -IMF survey

WASHINGTON | Tue Nov 22, 2011 6:38pm EST

WASHINGTON Nov 22 (Reuters) - Cross border portfolio investment holdings for 73 countries rose 7.7 percent to $40.3 trillion during 2010, an International Monetary Fund survey showed on Tuesday.

The IMF said its Coordinated Portfolio Investment Survey represents year-end foreign investment holdings of most of the largest economies among the fund's 187 members. It does not include portfolio investment holdings of mainland China.

Holdings of the countries participating in the survey had fallen by 21.4 percent in 2008 due to the global financial crisis, but they rose 21 percent from the end of 2008 through the end of 2009 as markets recovered.

The survey excludes foreign direct investment positions and bank loans, the IMF said.

The United States was the top investment destination, with other countries holding $8.29 trillion in U.S. equities and long-term and short-term debt securities. It was also the largest single holder of assets invested in other countries, with foreign portfolio holdings of $6.74 trillion.

The United Kingdom was the second-highest recipient of investment by foreign countries, with a total of $3.54 trillion. The UK ranked third as a holder of investments in other countries, at $3.25 trillion.

Japan was the second largest holder of investments in foreign countries, at $3.35 trillion, but was ninth as an investment destination, at $1.35 trillion.

Other countries featuring prominently both as top investment holders and top investment destinations were Germany, France, Luxembourg, the Netherlands, the Cayman Islands, Ireland and Switzerland.

In U.S. Treasury data showing cross-border capital flows, holdings from Britain, Caribbean banking centers and Luxembourg are often later determined to be custody holdings for investors in other countries.

http://www.reuters.com/article/2011/11/ ... 1A20111122