1 PROGRESS REPORT ON INSTITUTIONAL INVESTORS ASSETS - Table 7IA Working Party on Financial Statistics meeting Paris, 2-4 November 2009 Eun Jung KIM National Accounts and Financial Statistics OECD Statistics Directorate

2 Objectives of the presentation Results of the 2009 data collection. Summary of methodological survey. Difficulties encountered during data processing. Future projects.

3 Brief review on the content of the table 7IA The detailed breakdown by type of investors has been established in accordance with the SNA as much as possible: Investment funds S12_IF Open-end companies Money market funds Other mutual funds Closed-end companies Of which Real estate funds Insurance companies and pension funds S125 Insurance companies Life insurance companies Non-life insurance companies Autonomous pension funds Other forms of institutional savings S12_OF

4 Results of the 2009 data collection – 7IA 29 countries used to provide data on institutional investors. NZL is still missing. 26 countries have filled the 2009 questionnaire - Table 7IA. 22 countries out of 26 are validated and stored in the OECD database. The countries not yet validated are : AUT, JPN, MEX & TUR. SVK, CHE and GBR have not sent the 2009 questionnaire.

5 Results of the 2009 data collection – 7IA 14 countries have reported consolidated data for main sectors (S12_IF; S125; S12_OF) and non consolidated data for sub-sectors as requested. Only for S125: DNK and DEU. Only for S12_IF: ITA and ESP. Time coverage: 25 countries have reported data up to country has reported 2007 data (JPN).

6 Data coverage - 7IA Sector coverage: 1 country covers all sectors requested : AUS. 9 countries report data at the second level (IF_OC, IF_CC, S125_IC and S125_PF). Concerning the sector Investment funds and its sub- sectors, 5 countries report data only for the aggregated sector S12_IF : CZE, ISL, JPN, KOR & NLD. Concerning the sector Insurance companies and pension funds and its sub-sectors, 2 countries report data only for the aggregated sector S125: IRL & MEX. 12 countries have delivered data for the S12_OF Other forms of institutional savings sector.

7 Data coverage - 7IA Asset coverage: 17 countries are able to report data for all financial assets. However, some report them only for the two aggregated sectors S12_IF & S countries do not report any data for the sub-instruments AF41 and AF42 and 6 countries for AF331 and AF332 for the sectors S12_IF & S125 and their sub-sectors. 17 countries provide total non financial assets (AN) for the sector S12_IF, 19 countries for the sector S125 and 7 countries out of 12 for the sector S12_OF.

8 Summary of methodological survey – 7IA 21 countries have provided the methodological survey on institutional investors. 5 countries have provided data, but not provided the methodological survey yet: AUS, ISL, JPN, POL and SWE. 18 countries say that the data reported in the questionnaire are compatible with the financial balance sheets in the SNA (710: consolidated & 720: non-consolidated). Incoherence between data and the methodological survey has been noticed for some countries.

9 Summary of methodological survey – 7IA Definition/coverage of institutional investors: Investment funds are part of S122 or S123. Insurance companies and Autonomous pension funds are part of S125. Other forms of institutional savings are part of S123 (AUT, BEL, DNK, ITA &USA) or S1311 & S1314 (FIN) or S125 (HUN & NLD). For CZE, data are reported to be part of S124, but not provided. Definition/coverage of financial assets: For 21 countries, all financial assets in Table 7IA follow the SNA definitions.

10 Summary of methodological survey – 7IA Definition/coverage of non-financial assets (AN): 13 countries gave the definition of AN more or less in accordance with the SNA definition. Method of valuation of stocks of financial assets: 12 countries record all financial assets of Institutional investors at market or fair value. For the other countries, some assets are registered at the market value, others at nominal or book value. Geographical coverage of institutional investors: Data generally cover the activities of resident institutional investors and subsidiaries and branches of foreign firms operating on the national territory.

11 Difficulties encountered during data processing Regarding the questionnaire 7IA : Key information of the questionnaire is not always filled (consolidation: CZE & HUN) or is not correct (unit multiplier: TUR). Incoherent information between the questionnaire and the methodological survey. Non appropriated symbols are inserted in the cells. The time period covered differs from the previous submission without any explanation.

12 Difficulties encountered during data processing Regarding data validation, some inconsistencies appear: Hierarchical controls. Significantly revised data reported without any explanation. Three EU countries have difficulties filling in the OECD questionnaire in 2009 because of revised definitions of sectors according to new recommendations or rules by ECB. Differences appear between the Financial accounts and the 7IAs questionnaires regarding reported data of the sector S125.

13 Future projects To improve the comparability of these statistics between the OECD member countries by creating: Indicators in a common currency, ex: Series in US dollars. Series as a percentage of GDP Graphics, ex: Portfolio composition To collect quarterly data: 17 countries out of 21 compile quarterly data of which 13 countries agree to provide the OECD Secretariat with them. To add new instruments: Assets by currency Liabilities To show separately sub-sectors of investors: Hedge funds Sovereign funds Special Purpose Vehicles/Entities (SPV or SPE)

14 Conclusion The data collection on institutional investors becomes progressively complete and the methodological survey are more and more detailed. However, efforts should be done concerning: The historical data, sector and assets coverage. The consistency in hierarchical sums of assets and sectors. The coherence with Financial accounts related to the insurance companies & Pension funds (S125). Moreover, The methodological survey has to be provided together with the data and revised when necessary. The information in the methodological survey should be consistent with the data provided. Detailed information on revisions or changes in the methodology should be notified.

15 Thank you for your attention