Types of foreign portfolio investment

Please forward this error screen to 75. The purchase types of foreign portfolio investment establishment of income-generating assets in a foreign country that entails the control of the operation or organisation. Standard definitions of control use the internationally agreed 10 per cent threshold of voting shares, but this is a grey area as often a smaller block of shares will give control in widely held companies. Moreover, control of technology, management, even crucial inputs can confer de facto control.

FDI is not just a transfer of ownership as it usually involves the transfer of factors complementary to capital, including management, technology and organisational skills. Toyota assembling cars in both Japan and the UK. Vertical: when different stages of activities are added abroad. Conglomerate: where an unrelated business is added abroad. This is the most unusual form of FDI as it involves attempting to overcome two barriers simultaneously – entering a foreign country and a new industry. This leads to the analytical solution that internationalisation and diversification are often alternative strategies, not complements.

FDI can take the form of greenfield entry or takeover. Greenfield entry implies assembling all the elements from scratch as Honda did in the UK, whereas foreign takeover means the acquisition of an existing foreign company – as Tata’s acquisition of Jaguar Land Rover illustrates. 1 per cent of all foreign acquisitions. See more articles mentioning “foreign direct investment” or search FT. Each week The NAIC’s Capital Markets Bureau monitors developments in the capital markets globally and analyzes their potential impact on the investment portfolios of US insurance companies. The asset mix of an insurance company’s investment portfolio varies over time based on different influences, including both macroeconomic and industry-specific factors. The general state of the global economy, industry trends, market and political events also impact investment management decisions.

Similar to other industries, an adjustment to risk appetite tends to also result in an adjustment to investment strategies and philosophies. 2010, year-end 2008 and year-end 2005. Depending on the insurer type, portfolio compositions could vary, due mostly to appropriately matching assets to liabilities and taking into consideration relative duration and liquidity risk. Investment across other asset types tended to vary. In addition, we show the asset mix and bond sector breakdown as of year-end 2008 and year-end 2005.