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Canadian portfolio investment abroad, 2011

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Released: 2013-05-01

Canadian holdings of foreign securities increased 2.6% to $759.0 billion at the end of 2011, following a 14.6% gain in 2010. Net purchases of foreign securities combined with a generally depreciating Canadian dollar contributed to the growth in 2011, which was moderated by declines in most major global stock markets.

Foreign equities increased 2.3% to $590.7 billion by year-end 2011, accounting for over three-quarters of Canadian holdings of foreign securities. This share was similar to 2010, but much lower than the 90% exposure to foreign stock markets 10 years ago. Foreign debt securities held by Canadian investors increased 3.6% to $168.2 billion.

Canadian portfolio investment abroad extended to 95 countries in 2011. The top five investment destinations accounted for 75% of all holdings of foreign securities. These were the United States, United Kingdom, Japan, France and Australia, the latter replacing Germany as the fifth-ranked destination for Canadian investment.

The United States continued to be the top investment destination for Canadian portfolio investors, rising from 54% in 2010 to 57% in 2011. This was led by a 10% increase in holdings of US equities. US stock prices remained stable in 2011 while stock markets in other G7 countries posted losses.

Chart 1  Chart 1: Canadian holdings of foreign securities, by major geographic area - Description and data table
Canadian holdings of foreign securities, by major geographic area

Chart 1: Canadian holdings of foreign securities, by major geographic area - Description and data table

European securities accounted for 23% ($172.0 billion) of Canada's foreign portfolio assets in 2011, down from a peak of 30% in 2007. The value of Canadian investment in all major European countries was lower, except for the United Kingdom, as holdings advanced 6.0% in 2011 to $62.1 billion. Canadian portfolio assets in Italy and Greece were down significantly, against the backdrop of ongoing uncertainty in European credit markets.

The third most important region for Canadian portfolio investment abroad was Asia and Oceania. Holdings of securities from this region fell 2.6% to $102.8 billion in 2011, after having led the growth in 2010. The value of portfolio investment in Japan, South Korea, Taiwan and India posted the strongest declines. This was moderated by increased holdings of securities in Hong Kong, Singapore and China. New investments and a lower Canadian dollar value more than offset stock market declines in these three countries.

  Note to readers

Canadian Portfolio Investment Abroad is an annual survey of Canadian investors of securities which is used to generate a detailed geographical breakdown for holdings of foreign securities and serves to benchmark estimates in the International Accounts. Foreign securities cover equity and debt instruments issued by non-residents. Securities denominated in foreign currency are converted to Canadian dollars at year-end. The survey collects information on Canadian holdings of foreign securities at year-end, at market value and broken down by country of issuer. In this context, portfolio investment can be seen as investment undertaken primarily for the sake of investment income or capital gains. This investment excludes cross-border direct investment and reserve assets which are other components of the international accounts.

Contact information

For more information, contact us (toll-free 1-800-263-1136; infostats@statcan.gc.ca).

To enquire about the concepts, methods or data quality of this release, contact Francis Salifu (613-951-2428; francis.salifu@statcan.gc.ca) or Éric Boulay (613-951-1872; eric.boulay@statcan.gc.ca), International Accounts and Statistics Division.

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