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In table 30.14, levels of investment are categorised by direction (Australian investment abroad and foreign investment in Australia), type of investment (direct, portfolio, financial derivatives, other and reserve assets) and instrument.

Direct investment is a category of international investment that reflects the objective of obtaining a lasting interest by a resident in one economy in an enterprise in another economy, and implies a significant degree of influence by the investor in the management of the enterprise. A direct investment relationship is established when a direct investor, who is a resident in one economy, holds 10% or more of the ordinary shares or voting stock of an enterprise (direct investment enterprise) in another economy. The portfolio investment category covers investment in equity and debt securities (other than direct investment and reserve assets).

The items Australian investment abroad and Foreign investment in Australia in table 30.14 do not equate with foreign assets and liabilities respectively in table 30.12. The difference is due to netting of assets and liabilities in regard to direct investment, both abroad and in Australia. Claims by direct investment enterprises on their direct investors, separately identified in table 30.14, are netted off in that table against liabilities to direct investors. These items are not netted off in table 30.12

At 30 June 2001, Australian investment abroad totalled $419.3b, up 10% on the level a year earlier. This rise was the net effect of a $5.4b increase in direct investment abroad, an $11.5b increase in portfolio investment assets, a $4.7b increase in financial derivative assets, a $7.6b increase in other investment assets and a $10.0b increase in reserve assets.

Foreign investment in Australia totalled $813.5b at 30 June 2001, up 13% on June 2000. This rise was due to a $14.4b increase in direct investment in Australia, a $60.5b increase in portfolio investment liabilities, a $2.1b increase in financial derivative liabilities and a $14.2b increase in other investment liabilities. The increase in portfolio investment liabilities was attributable to significant increases in both equity ($13.8b) and debt securities ($46.7b).