13.7. The data sources and methods used to estimate the various components of portfolio investment are detailed in table 13.4. The backbone of the compilation is data coming from the Survey of International Investment, although in some places those data undergo some modelling before reaching their final form.
13.8. On the assets side, data coming from the survey are modelled to enable the separate identification of debt and equity securities held under management abroad, and to estimate the transactions and price change components of total change in the investment position from period to period. The Accrued Income on Debt Securities Model is also used to reclassify accrued income transactions flows using the apparent price changes on debt securities initially derived in the modelling.
13.9. On the liabilities side, for shares issued by resident entities and held by non-residents, apart from shares held through nominees, the data come from company share registers and are reported in the Survey of International Investment. Likewise data on derivatives and debt securities domiciled abroad are directly compiled from the survey.
13.10. However, also on the liabilities side, data on portfolio investment in shares held through nominees and debt securities domiciled in Australia (about 25 per cent of debt securities), come from data models based on data supplied by nominees in the Survey of International Investment. Such investments, which include equity (shares and units in unit trusts) issued by financial and trading enterprises and debt instruments issued by the Australian and State Governments, and financial and trading enterprises, are held by nominees on behalf of non-residents. Where nominees are involved, the issuer generally does not know who holds the share or debt security issued. Nominees are the main data source for measuring the levels for equity capital and for debt securities domiciled in Australia. However, nominee data are incomplete and need a degree of manipulation. Hence there is a need to resort to the complex data models briefly described in Appendix 2. The Accrued Income on Debt securities Model is also used to reclassify accrued income transactions flows from the apparent price changes on debt securities derived in the modelling.
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13.4 SUMMARY OF SOURCES AND METHODS — PORTFOLIO INVESTMENT
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| Component | Source of data | Method of estimation | |
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| Assets | Survey of International Investment (SII) | SII measures, through direct collection and modelling, financial transactions, level of investment, price change, exchange rate change and other adjustments for portfolio investment assets. These data cover equities, long- and short-term debt securities and financial derivatives. Data are extracted directly from the source.
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| | Accrued Income on Debt Securities Model (AIDSM) | The AIDSM is also used to reclassify accrued income transactions flows from the apparent price changes on debt securities initially derived in the modelling. | |
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Liabilities | | | |
| - equity securities | Survey of International Investment (SII) | SII measures financial transactions, levels of investment, price changes, exchange rate changes, and other adjustments for portfolio investment in shares issued by Australian resident enterprises and recorded on share registers. The SII also measures levels of shareholdings in Australian resident enterprises held by Australian nominees on behalf of non-residents. Data supplied by nominees are adjusted using the PIELM model, which is discussed below.
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| - debt securities, excluding derivatives | Portfolio Investment in Equity Liabilities
Model (PIELM) | PIELM is used to estimate financial transactions, the market value level of investment, price change, exchange rate change and other adjustments for portfolio investment in equities issued by Australian resident enterprises, from face value levels data supplied by nominees to the SII.
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| | Survey of International Investment (SII) | SII data on financial transactions, level of investment, price change and exchange rate change for debt securities issued abroad are used directly. Data supplied by nominees to the SII on debt securities issued in Australia are adjusted using PIDSLM.
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| | Portfolio Investment in Debt Security Liabilities Model (PIDSLM) | PIDSLM is used to estimate financial transactions, the market value level of investment, price change, exchange rate change and other adjustments for portfolio investment in debt securities issued in Australia.
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| | Accrued Income on Debt Securities Model (AIDSM) | The AIDSM is also used to reclassify accrued income transactions flows from the apparent price changes on debt securities initially derived in the modelling.
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| - financial derivatives | Survey of International Investment (SII) | SII data on level of investment, price change, exchange rate change and other adjustments for financial derivatives liabilities are used directly. | |
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