Archive for the 'Direct Investment' Category

New FAQs Aim to Help Private Funds Determine When They Have to File a Survey to BEA for U.S. Direct Investment Abroad

Gaining a detailed picture of the role the United States plays in the global market place is made easier by the wealth of international investment statistics produced by the Bureau of Economic Analysis.  So it’s critically important that we get the most accurate information possible from businesses, private funds, and others who fill out our BEA surveys.

To that end, BEA recently released some guidance on when private funds may need to fill out a BE-10 survey, which collects information on U.S. direct investment abroad.  The guidance is in the form of several Frequently Asked Questions (FAQs).

The new FAQs answer questions such as:

  • How do I contact BEA if I have specific questions about how to report my U.S. and foreign-based entities (private funds, operating companies, etc.) on the 2014 BE-10 survey?
  • Are the data reported on the BE-10 survey kept confidential?
  • Does the 2014 BE-10 reporting overlap with the Treasury International Capital (TIC) reporting for private funds?
  • How do I complete a survey for a foreign affiliate entity if it is a private fund versus an operating company? The 2014 BE-10 survey forms may have numerous questions which do not appear to apply to my domestic and foreign funds/entities. How do I proceed?
  • How do I determine which U.S.-based private fund entity or manager would be the U.S.  Reporter that is required to complete the 2014 BE-10A Report for U.S.  Reporter?
  • If it is determined that a private fund must complete the 2014 BE-10 survey, which forms are required?
  • My company/client is a private fund that has foreign investment. Am I required to submit the 2014 Benchmark Survey of U.S. Direct Investment Abroad (BE-10)?

Other resources for assisting the filing of the 2014 BE-10 survey can be found here.

Detailed Direct Investment Data Now Available for 2013

The U.S. Bureau of Economic Analysis (BEA) has released additional statistics on U.S. direct investment abroad – or “outward direct investment” – and on foreign direct investment in the United States – or “inward direct investment” for 2013 and revised statistics for 2011 and 2012.

These newly released statistics provide comprehensive data on direct investment by country and industry for financial transactions, equity, debt instruments, reinvestment of earnings, and income. Statistics are also now available for positions, financial transactions, and income for all countries and industries where direct investment is present, for both inward and outward.

An upcoming article in the September Survey of Current Business will present these statistics as well as additional statistics, such as reinvestment ratios, rates of return, and position and income data for outward investment classified by the industry of the U.S. parent.

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Direct Investment Positions for 2013 Now Available

Both outbound and inbound U.S. foreign direct investment continued to grow in 2013. The U.S. direct investment position abroad valued at historical cost increased to $4,660.9 billion from $4,384.7 billion in 2012.  The foreign direct investment position in the United States valued at historical cost increased to $2,764.0 billion from $2,605.8 billion in 2012.

Inward Direct Investment Outward Direct Investment

The U.S. Bureau of Economic Analysis (BEA) has released detailed statistics on U.S. direct investment abroad – or “outward direct investment”­­­– and on foreign direct investment in the United States – or “inward direct investment”.  These statistics cover direct investment positions at historical-cost (book value) on a directional basis, by country and industry. On a directional basis, direct investment claims and liabilities are classified according to whether the direct investor is a U.S. resident or a foreign resident. On this basis, outward investment occurs between a U.S. parent company and its foreign affiliates, and inward direct investment occurs between a foreign company and its U.S. affiliates. In each case, the position measures the parent’s net financial claims on its affiliates.

These statistics provide data on direct investment by country and by industry.  For outward investment, the statistics provide information for major countries and industries in which U.S. companies have invested directly and are classified by the country and industry of the foreign affiliate.

For inward investment, the statistics provide information for major countries from which there is direct investment.  These statistics are classified by the country of the foreign parent—that is, the country of the investor with a direct investment in the U.S. affiliate.  Statistics on inward investment classified by the country of the investor who ultimately controls the investment, called the ultimate beneficial owner, are also available.

By providing this additional detail, these statistics enhance the International Transactions Accounts released in June 2014 and the upcoming International Investment Position statistics.

For 2011-2012, the statistics reflect the incorporation of new or revised data from BEA’s quarterly surveys of transactions between parents (both U.S. and foreign) and their affiliates, along with annual surveys of financial and operating data for U.S. parent companies and their foreign affiliates and for U.S. affiliates of foreign companies.

Upcoming articles in the July and September Survey of Current Business will present these statistics as well as additional statistics, such as related financial transactions and income, statistics for all countries and industries, reinvestment ratios, rates of return, and position and income data for outward investment classified by the industry of the U.S. parent.