1 TOWARD THE INTEGRATION OF THE INSTITUTIONAL INVESTORS DATABASE INTO THE FINANCIAL ACCOUNTS DATABASE Working Party on Financial Statistics October 2004 by Michèle Chavoix-Mannato, OECD/NAFS

2 The OECD Institutional Investors database A A imed at measuring and analysing the role of institutional investors in capital markets P P ublication annually released C C oncepts based on the SNA 1993/ESA 1995 D D ata mainly derived ofrom National Accounts oor from surveys aimed at their compilation

3 The OECD Institutional Investors database Its content I I nstruments o Total non-financial assets o Detailed financial assets with a breakdown between residents and non-residents o Total liabilities S S ectors o Insurance companies o Investment companies o Pension funds o Other

4 The OECD Financial Accounts database D atabase recently revived in the framework of the SNA 1993 P ublications on transactions and stocks just released S maller number of detailed institutional investors sectors N o breakdown between residents and non-residents

Comparison of the classification of assets between II ad FA

What does exist in II which does not exist in FA  Non-financial assets  A plan is underway to collect this information  It is proposed to retain these categories in the additional table FA/II  Breakdown between residents and non-residents  the new 2004 FA questionnaire includes a “ whom to whom ” cross classification for all assets and liabilities of all institutional sectors  It is proposed to maintain this breakdown at least for bonds and shares

Comparison of the classification of sectors between II ad FA

II’s Insurance companies & pension funds versus FA’s S125  In II there is a breakdown of the S125 between  life insurance  non life insurance  autonomous pension funds  Proposal The following breakdown of four categories in the FA/II additional table could be added:  non-life insurance  pure non-life reinsurers  life insurance  autonomous pension funds

II’s Investment companies versus parts of FA’s S122 & S123  The II sector “ investment companies ” seems to correspond to ‘ mutual funds ’  No definition in SNA  Fortunately, precise definitions in ESA Definition Mutual funds are considered as financial intermediaries … may be classified in sub-sector S122 … otherwise … in sub-sector S123

Liabilities of II’s Investment companies versus F52 liabilities of FA’s S122 & S123 Comparisons between  the total of liabilities of investment companies in II  and the liabilities for F52 in sectors S122 and S123 in FA:  results  For several countries, they appear to be equivalent or almost equivalent  In some countries, it is not but it can be explained

II’s Investment companies versus FA’s S122 & S123 Conclusion  Conclusion Investment companies can be classified in two sectors:  S122 Other monetary financial institutions, specialized in money market funds  S123 Other financial intermediaries, investing in other investment funds (such as bonds, shares or real estate)

Other information included in II A II Apart from the Total non-financial assets and Detailed financial assets, II includes, for each category of investors, some information on liabilities, in particular:  Total liabilities  of which Net equity of households on life insurance provisions  of which Net equity of households on pension funds  of which Shares/units issud by investment companies directly held by households

New Table FA/II: SECTORS

New Table FA/II: ASSETS

15 The WPFS delegates are requested to state their view on three recommendations Recommendation 1: The WPFS agrees on the principle of better integration of the II database with the FA database. It accepts the principle of the abandon of the existing II questionnaire to be replaced by an additional table FA/II included in the OECD questionnaire on Financial Accounts.

16 Recommendation 2: The WPFS accepts the simplified classification of assets FA/II proposed in the additional Table FA/II of the present paper.

17 Recommendation 3: The WPFS accepts the classification of institutional investors FA/II proposed in the additional Table FA/II of the present paper.

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