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Bermuda Issues Report On Foreign Portfolio Holdings

by Jason Gorringe, Lowtax.net, London
28 December, 2015

On December 23, the Bermuda Monetary Authority published the results of its Coordinated Portfolio Investment Survey, which for the first time sets out information on the territory's cross-border holdings of portfolio investment securities.

The CPIS, conducted annually under the auspices of the International Monetary Fund (IMF), collects information on economies' cross-border holdings of portfolio investment securities. The BMA's first CPIS report shows where Bermuda financial services entities invest assets and in what form, as well as which countries are investing in Bermuda. It aims to provide the BMA's stakeholders with a more convenient and comprehensible source of information on Bermuda's foreign portfolio holdings.

Key findings include:

  • Bermuda financial services entities have a sizable and significant share of foreign portfolio holdings (65 percent of Bermuda's financial services assets) amounting to USD516bn in 2014, a 16 percent increase from 2013, attributed to the growth of the financial services industry in Bermuda;
  • Foreign portfolio holdings in Bermuda consist mainly of debt securities, amounting to USD423bn, representing 82 percent of total holdings; and
  • Geographically, US holdings dominated Bermuda's foreign portfolio investment assets, accounting for 52 percent of total holdings. Issuances by Canada and the UK accounted for five percent each, while the Cayman Islands, Ireland, and Luxembourg followed with a four percent share each.

In the report, Bermuda's foreign portfolio holdings are broken down by subsectors, namely insurance (82 percent of holdings), investment funds (16 percent of holdings), and banking (2 percent of holdings).

Bermuda's participation in the IMF's CPIS exercise contributes to an improved understanding of the jurisdiction as an international financial center and emphasizes Bermuda's commitment to a high standard of transparency, the BMA said.

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