BALANCE OF PAYMENTS &

INTERNATIONAL INVESTMENT
POSITION
FOR THE QUARTER ENDED DECEMBER 2014
QUARTERLY FAST FACTS

QUARTERLY CURRENT ACCOUNT

Current Account
The Bermuda current account recorded a surplus of
$232 million in the fourth quarter of 2014. This
represented a $130 million increase year-over-year.
The deficit on the goods account decreased by
$25 million to $234 million.

Current Account surplus = $232 million

The current account surplus stood at $232 million for
the fourth quarter of 2014. This represented a $130
million increase from the $102 million surplus in the
fourth quarter of 2013. The increase in the current
account surplus mostly reflected an improvement in
net income received on the primary income account
as a result of net dividend receipts. The current
account surplus was also impacted by a narrowing of
the deficit on merchandise trade due to a decrease in
the value of imported goods.

Services transactions realised a surplus of $104

million in the fourth quarter of 2014.

The surplus on Bermudas primary income

account rose to $396 million in the last quarter
of 2014.

Q4 2014 CURRENT ACCOUNT RECEIPTS

CURRENT ACCOUNT BALANCES

(BD$) million

Employee
Comp.
37.7%

250

Other
Income
3.6%

Government
2.5%

200
150

Business
28.4%

100
50

Secondary
Income
3.9%
Travel
8.8%

Exports
0.4%
Transport
1.0%

Q4

Q1

Q2

Q3

Q4

2013

2014

2014

2014

2014

Financial,
Accounts

Capital,

and

Reserve

Assets

Transactions on Bermudas asset accounts resulted

in a net lending position of $276 million. Factors
influencing this performance include:

Bermudas net acquisition of financial assets

resulted in an accumulation of $351 million
compared to an increase of $2,439 million in
2013.

Investment
Income
13.7%

Bermuda increased its net incurrence of

financial liabilities by $75 million this quarter
compared to an increase of $2,395 million in
2013.

The Goods Account recorded a deficit of

$234 million
The value of goods imported fell 10.3 per cent to
$236 million during the quarter. Imported goods
from the Caribbean region decreased by $14 million,
while the value of imports from Canada fell by $11
million over the same period. In contrast, imports
from the Islands largest trading partner the United
States grew by $3 million during the quarter. Imports
of finished equipment and machinery recorded the
largest decreases, falling $10 million and $9 million,
respectively. Residents also spent $3 million less on
both fuel and chemicals imports during the quarter.
Revenue from exports remained unchanged at $3
million during the quarter.

DEPARTMENT OF STATISTICS

BERMUDA BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION

The Services Account surplus increased $9

million
Receipts from services transactions stood at $341
million during the quarter. Among the services
categories, business services jumped $22 million
due to an increase in insurance services. Revenue
from government services climbed $6 million. In
contrast, receipts from travel inflows fell by $10
million on account of lower expenditure by cruise
and air visitors during the quarter.
Payments for services received from non-residents
totalled $237 million in the fourth quarter, $6
million above the level recorded in 2013. This
outcome reflected mostly increased payments for
business services, specifically an increase of $5
million in payments for other services related to
operating expenditure.
Payments for financial
services rose by $2 million. In contrast, payments
by residents for travel (including overseas training
and conferences) dipped $1 million. Transportation
outflows were unchanged at $60 million.
Primary Income surplus rose by $91 million
The primary income account reflects balances on
compensation earned/paid to non-residents, and
income from investments and payroll tax paid by
non-resident companies to the government. The
surplus on the primary income account increased to
$396 million from $305 million in 2013.
This
increase reflected a $92 million rise in net
investment income due mostly to net dividend
receipts. In contrast, employee compensation
declined by $2 million.

PRIMARY INCOME ACCOUNT BALANCES

(BD$) million
600
500
400
300
200
100
Q4

Q1

Q2

Q3

Q4

2013

2014

2014

2014

2014

Secondary Income recorded a $35 million deficit

The secondary income account reflects the balances
on donations, insurance claims and other transfers
between residents and non-residents. The deficit on
the secondary income account narrowed to $35
million. The smaller deficit reflected primarily an
increase in net non-life insurance premiums received
from non-residents.
INTERNATIONAL INVESTMENT POSITION
(IIP) (Table 2)
Bermudas net IIP increased to $4,341 million
At the end of the 4th quarter 2014, the stock of
foreign assets held by Bermuda residents registered
above its stock of foreign liabilities by an estimated
$4,341 million. This net IIP increased by $442
million over the third quarter of 2014.
Foreign assets increased with growth in other
investment
Bermuda residents net acquisition position of
financial assets increased $579 million, due mostly to
residents increasing their holdings of currency and
deposits held overseas by $837 million during the
quarter. Loans also increased by $76 million.
Bermudas net liability position increased
Bermuda residents increased their stock of foreign
liabilities by $137 million. This increase was mostly
associated with outstanding liabilities related to loans
which increased $648 million and a rise in currency
and deposits of $313 million.
IIP by institutional sector
The non-financial corporations held a net liability
position of $862 million with the rest of the world at
the end of the fourth quarter 2014. The general
government sectors asset holdings exceeded its
external debt by $90 million while financial
corporations held a net asset position of $5,090
million on the strength of portfolio investment
holdings such as bonds, notes and money market
instruments.
Non-profit institutions serving
households also recorded a net asset position of $23
million at the end of the fourth quarter.

DEPARTMENT OF STATISTICS

BERMUDA BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION

TABLE 1 QUARTERLY ESTIMATES BY MAJOR ACCOUNTS, 2013 - 2014 (BD$) MILLIONS
COMPONENTS
CURRENT ACCOUNT PAYMENTS
GOODS IMPORTS
SERVICES
Transportation
Travel
Business Services:
Insurance services
Financial services
ICT services
Other services
Government services
PRIMARY INCOME
Employee Compensation
Investment Income
Other Income
SECONDARY INCOME
TOTAL PAYMENTS
CURRENT ACCOUNT RECEIPTS
GOODS EXPORTS
SERVICES
Transportation
Travel
Business Services:
Insurance services
Financial services
ICT services
Other services
Government services
PRIMARY INCOME
Employee Compensation
Investment Income
Other Income
SECONDARY INCOME
TOTAL RECEIPTS
CURRENT ACCOUNT BALANCES
GOODS
SERVICES
Transportation
Travel
Business Services:
Insurance services
Financial services
ICT services
Other services
Government services
PRIMARY INCOME
Employee Compensation
Investment Income
Other Income
SECONDARY INCOME
CURRENT ACCOUNT BALANCE
FINANCIAL ACCOUNT
Direct investment
Portfolio investment
Financial Derivatives
Other investment
Reserve assets
NET ACQUISITION OF FINANCIAL
ASSETS
Direct investment
Portfolio investment
Financial Derivatives
Other investment
NET INCURRENCE OF FINANCIAL
LIABILITIES
TOTAL NET FINANCIAL ACCOUNT
TOTAL NET CAPITAL ACCOUNT
TOTAL NET LENDING (+)/NET
BORROWING (-)
BALANCING ITEM

R revised, P provisional

2013
Q1

2013
Q2

2013
Q3

2013
Q4

2014
Q1

2014
Q2

2014
Q3

2014
Q4

235
224
60
61
99
32
9
17
41
4
597
16
582
0
61
1,118

255
238
66
63
105
36
11
18
41
4
-6
16
-23
0
64
550

259
248
67
74
104
34
8
19
43
4
95
16
78
0
65
666

263
231
60
70
97
36
6
19
37
4
139
16
123
0
63
695

221
221
55
61
100
30
5
19
45
4
90
16
73
0
67
599

262
254
70
64
116
39
8
19
50
4
69
17
52
0
70
655

257
271
67
73
127
52
10
19
47
4
79
17
63
0
67
675

236
237
60
69
103
35
8
18
42
4
65
16
49
0
68
606

3
292
9
46
192
18
33
18
124
45
1,027
318
662
47
22
1,344

3
366
11
144
210
22
42
18
128
2
467
318
114
36
24
861

3
389
11
167
210
20
49
20
121
1
447
318
101
28
26
867

3
326
10
84
216
19
56
20
122
15
444
318
97
29
25
797

3
295
9
42
204
22
34
17
131
39
487
339
96
52
28
812

3
361
8
140
211
23
38
18
131
2
479
329
116
34
29
872

3
386
9
157
218
24
47
19
128
1
405
309
67
29
32
825

3
341
8
74
238
40
55
18
124
21
461
316
115
30
33
838

-233
68
-51
-16
93
-15
24
1
83
41
429
302
80
47
-39
226

-251
128
-55
81
105
-14
32
0
87
-2
473
301
136
36
-40
310

-255
141
-56
93
107
-13
41
1
78
-3
353
302
23
28
-38
200

-259
95
-49
14
119
-17
49
1
85
11
305
302
-26
29
-38
102

-218
74
-46
-19
104
-9
29
-2
86
35
397
322
23
52
-39
213

-259
107
-62
77
95
-16
30
-1
82
-2
411
312
64
34
-41
217

-254
115
-58
84
91
-28
37
0
82
-3
326
293
4
29
-35
151

-234
104
-52
4
135
5
47
0
82
17
396
300
66
30
-35
232

60
782
32
-720
1

38
-902
35
1,037
5

-15
206
36
310
-1

-33
2,082
22
363
6

41
-163
35
-633
-9

31
-420
26
-390
-2

-2
-639
92
-480
-13

50
-673
7
957
10

155
510
4
0
-787

213
-501
-63
-13
705

536
7
21
15
93

2,439
39
593
-9
1,772

-729
13
-767
-4
-260

-755
-9
-191
17
-788

-1,043
-27
-105
9
-1,053

351
-24
-782
-11
892

-273
-429
0

128
-85
0

136
-399
0

2,395
-44
0

-1,017
-288
0

-971
-216
0

-1,176
-134
0

75
-276
0

429

85

399

44

288

216

134

276

203

-226

199

-58

75

-1

-17

44

Numbers may not add due to rounding

BERMUDA BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION

1,2

Table 2 - INTERNATIONAL INVESTMENT POSITION (IIP)

(BD$) MILLIONS
COMPONENTS
ASSETS
BY FUNCTIONAL CATEGORY
Direct investment
Portfolio investment
Financial Derivatives (other than reserves) and ESOs
Other investment
Reserve Assets
BY INSTRUMENT
Equity and investment fund share/units
Debt instruments:
Special drawing rights
Currency and deposits
Debt securities
Loans
Insurance, pension, standardized guarantee
schemes
Other accounts receivable/payable
Other financial assets and liabilities
TOTAL ASSETS
LIABILITIES
BY FUNCTIONAL CATEGORY
Direct investment
Portfolio investment
Financial Derivatives (other than reserves) and ESOs
Other investment
BY INSTRUMENT
Equity and investment fund share/units
Debt instruments:
Special drawing rights
Currency and deposits
Debt securities
Loans
Insurance, pension, standardized guarantee
schemes
Other accounts receivable/payable
Other financial assets and liabilities
TOTAL LIABILITIES
NET IIP

2013
Q4

2014
Q1

2014
Q2

2014
Q3

2014
Q4

835
14,050
132
3,755
152

864
13,875
55
3,118
142

899
13,521
53
2,732
140

889
12,656
115
2,240
127

934
12,267
95
3,173
137

918
17,873
2,619
14,118
1,017

870
17,129
1,809
14,011
1,180

907
16,384
1,505
13,652
1,105

886
15,026
1,128
12,786
1,011

942
15,568
1,965
12,395
1,087

119
132
18,923

130
55
18,054

122
53
17,344

101
115
16,027

121
95
16,606

2,664
2,471
24
10,249

2,678
1,704
19
9,581

2,670
1,511
39
8,981

2,641
1,411
42
8,033

2,616
631
27
8,991

3,038
12,346
n.a.
7,857
2,097
2,370

3,050
10,913
n.a.
7,184
1,332
2,376

3,002
10,160
n.a.
6,705
1,179
2,252

3,025
9,061
n.a.
5,762
1,028
2,252

3,006
9,232
n.a.
6,075
240
2,900

21
24
15,408
3,515

21
19
13,983
4,071

25
39
13,202
4,142

19
42
12,128
3,899

17
27
12,265
4,341

Households
Nonand
General
Financial
financial
2,3
NPISHs
government corporations corporations

Total
economy

IIP By Resident Institutional Sector (BD$) MILLIONS

2014 Q4

ASSETS

23

2,275

14,135

173

16,606

Direct investment

n.a

805

129

934

Portfolio investment

15
-

2,265
-

9,966
95

22
-

12,267
95

10

3,132

22

3,173

Financial Derivatives (other than reserves) and ESOs

Other investment
Reserve Assets
LIABILITIES
Direct investment
Portfolio investment
Financial Derivatives (other than reserves) and ESOs
Other investment
NET IIP

137
-

2,185

137

9,045

1,035

12,265

1,655

961

2,616

620
27

11
-

631
27

2,185

6,743

63

8,991

23

90

5,090

(862)

4,341

1 Data are estimates only and subject to revision

2. Series does not include stock of household foreign assets and liabilities
3. NPISH: Non-profit institutions serving households.
R revised, P provisional

Numbers may not add due to rounding

BERMUDA BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION

ANNUAL CURRENT ACCOUNT

Current Account surplus = $813 million (see
Table 3)
The current account surplus stood at $813 million in
2014, decreasing $25 million. The decline in the
surplus reflected total receipts decreasing by a
greater magnitude than payments.

2014 CURRENT ACCOUNT RECEIPTS

Employee
Comp.
38.7%

Government
1.9%
Business
25.9%

Investment
Income
11.8%
Other
Income
4.3%
Secondary
Income
3.6%

Travel
12.5%

Exports
0.4%
Transport
1.0%

Net payments for goods falls

Residents paid $36 million less for imported goods
in 2014 and earned only $2 million less in export
revenue compared to last year. Total payments
amounted to $976 million while export earnings
stood at $11 million resulting in a narrowing of the
deficit on merchandise trade to $966 million.
The Services Account surplus decreased $32
million
The surplus on the services account fell to $399
million in 2014. This outcome reflected an increase
in payments that exceeded the increase in receipts.
Receipts for services rose by $9 million to $1,382
million. Receipts for insurance services and other
services improved by $30 million and $20 million,
respectively. In contrast, receipts from travel fell
$27 million due to lower expenditure by air
visitors.

The Primary Income Account surplus decreased

$31 million
The surplus on primary income transactions fell $31
million to $1,529 million in 2014. The smaller surplus
on the primary income account was due to a $56
million net decrease in investment income which
offset a $21 million net increase in employee
compensation.
Secondary Income payments exceeded receipts by
$150 million
The secondary income account recorded a deficit of
$150 million in 2014. This reflected a $5 million
decrease in the deficit balance on this account as net
non-life insurance premiums exceeded non-life
insurance claims paid to non-residents.
INTERNATIONAL INVESTMENT POSITION
(IIP)
Bermudas net IIP increased $826 million year
over year.
Transactions on the financial account resulted in an
increase in Bermudas net IIP from $3,515 million at
the end of 2013 to $4,341 million at the end of 2014
(see Table 2).
Bermuda residents acquired $2,317 million less in
financial assets in 2014 compared to the previous
year, primarily in portfolio investment instruments
such as bonds and money market instruments. In
contrast, residents incurrence of financial liabilities
fell by $3,143 million.
Bermuda reduced its holdings of reserve assets by $15
million in 2014.

Payments for services totalled $983 million in 2014,

an increase of $42 million. Residents paid more for
insurance, and other services which offset decreased
expenditure on travel and financial services.

DEPARTMENT OF STATISTICS

BERMUDA BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION

TABLE 3 ANNUAL ESTIMATES BY MAJOR ACCOUNTS, WITH CHANGES, 2011 - 2014 (BD$) MILLIONS
2011
2012
2013
2014
2012/2011
2013/2012
2014/2013
COMPONENTS
($) Change
($) Change ($) Change
CURRENT ACCOUNT PAYMENTS
GOODS IMPORTS
900
900
1,012
976
0
111
-35
SERVICES
937
943
941
983
7
-2
41
Transportation
247
243
252
253
-4
9
0
Travel
256
266
268
267
10
2
-1
Business Services:
415
416
405
447
1
-11
42
Insurance services
117
150
138
157
33
-13
19
Financial services
36
30
33
32
-6
4
-1
ICT services
83
81
72
75
-2
-9
2
Other services
179
156
162
184
-23
6
22
Government services
18
18
16
16
0
-2
0
PRIMARY INCOME
354
256
825
303
-97
568
-522
Employee Compensation
64
67
64
66
2
-2
2
Investment Income
290
190
760
237
-100
570
-523
Other Income
0
0
0
0
0
0
0
SECONDARY INCOME
219
240
252
273
21
12
20
TOTAL PAYMENTS
2,410
2,341
3,030
2,534
-70
689
-496
CURRENT ACCOUNT RECEIPTS
GOODS EXPORTS
SERVICES
Transportation
Travel
Business Services:
Insurance services
Financial services
ICT services
Other services
Government services
PRIMARY INCOME
Employee Compensation
Investment Income
Other Income
SECONDARY INCOME
TOTAL RECEIPTS
CURRENT ACCOUNT BALANCES
GOODS
SERVICES
Transportation
Travel
Business Services:
Insurance services
Financial services
ICT services
Other services
Government services
PRIMARY INCOME
Employee Compensation
Investment Income
Other Income
SECONDARY INCOME
CURRENT ACCOUNT BALANCE
FINANCIAL ACCOUNT
Direct investment
Portfolio investment
Financial Derivatives
Other investment
Reserve assets
NET ACQUISITION OF FINANCIAL
ASSETS
Direct investment
Portfolio investment
Financial Derivatives
Other investment
NET INCURRENCE OF FINANCIAL
LIABILITIES
TOTAL NET FINANCIAL ACCOUNT
TOTAL NET CAPITAL ACCOUNT
TOTAL NET LENDING (+)/NET
BORROWING (-)
BALANCING ITEM

R revised, P provisional

13
1,458
40
493
860
49
212
78
521
65
1,679
1,174
357
148
88
3,238

83
1,395
44
441
850
79
194
86
492
59
1,755
1,224
392
140
102
3,335

13
1,373
41
440
829
79
180
75
496
62
2,385
1,271
974
140
97
3,868

11
1,382
35
413
871
109
175
72
515
63
1,832
1,293
394
145
122
3,347

70
-63
4
-52
-10
30
-18
8
-29
-6
76
50
35
-9
14
97

-70
-22
-3
-1
-21
0
-14
-11
4
3
630
47
582
1
-4
533

-2
9
-7
-27
42
30
-5
-3
20
0
-553
23
-580
4
25
-521

-888
521
-207
237
445
-69
176
-4
342
46
1,325
1,110
67
148
-131
828

-817
451
-199
175
434
-72
164
5
336
41
1,499
1,157
202
140
-139
994

-999
431
-211
173
424
-59
146
3
334
46
1,560
1,207
214
140
-155
838

-966
399
-218
147
424
-48
143
-2
332
46
1,529
1,227
157
145
-150
813

70
-70
8
-62
-11
-3
-12
10
-6
-5
173
47
134
-9
-8
166

-181
-20
-12
-3
-10
13
-18
-2
-2
5
62
50
12
1
-16
-156

33
-32
-7
-26
1
12
-3
-5
-2
0
-31
21
-56
4
5
-25

-337
2,274
107
1,358
11

240
-794
83
451
-5

51
2,168
125
989
11

120
-1,895
160
-546
-15

577
-3,068
-24
-907
-16

-190
2,962
42
538
16

69
-4,063
35
-1,535
-26

3,413
-258
-121
8
3,547

-25
48
266
15
-1,181

3,343
55
555
-7
1,783

-2,176
-48
-1,845
11
-1,208

-3,438
305
387
7
-4,728

3,368
7
289
-22
2,964

-5,519
-103
-2,400
18
-2,991

3,176
-237
0

-853
-828
0

2,386
-957
0

-3,090
-914
0

-4,029
-590
0

3,238
-130
0

-5,476
44
0

237

828

957

914

590

130

-44

-51

-666

-93

-56

-614

573

36

Numbers may not add due to rounding

BERMUDA BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION

WHAT IS THE BALANCE OF PAYMENTS?

The balance of payments (BOP) is a statistical statement
that systematically summarizes, for a specific time
period, the economic transactions of an economy
(resident) with the rest of the world (non-resident). Quite
simply, the balance of payments covers all economic
transactions between Bermuda and the rest of the world.
It includes the current account and the capital and
financial account.
In principle, the current account and capital and financial
account should balance each other out. If Bermuda sells
more goods and services than it buys (i.e., if it has a
current account surplus), it has to lend money
abroad to finance its exports (i.e., run a capital and
financial account deficit). In theory, therefore, the
balance of payments is always zero.
Example: Every dollar spent by a tourist in
Bermuda earns the economy $1 in foreign
currency which can be used to purchase goods
and services from overseas.

Resident
The concept of residency is very important in the BOP
because the BOP is in fact a statement of transactions
between residents and non-residents. A unit must have a
centre of predominant economic interest within an
economic territory for at least one year or more to be
considered resident of that territory.
Seasonal workers
Workers from overseas who come to Bermuda to work
for a few months in the year or every year are
considered seasonal workers. Their expenditure on
living expenses in Bermuda is included as travel
receipts. Similarly, their income received from
employers in Bermuda is a BOP outflow under
compensation of employees.

DEFINITIONS AND NOTES

Current Account
Transactions on goods, services, income, and current
transfers are allocated to the current account.
Transactions in exports and interest income are
examples of receipts, while imports and interest
expenses are payments. The difference between
payments and receipts determines if Bermudas current
account is in surplus or deficit.

Capital Account

Payments

The capital account details transactions that involve the

receipt or payment of capital transfers and acquisitions
and disposal of non-produced, non-financial assets.

All monies that are paid by residents to non-residents

are considered payments.

Financial Account

Receipts
All monies that are received by residents from nonresidents are considered receipts.

All transactions associated with changes of ownership in

foreign financial assets and liabilities of the economy are
included in the financial account. Such changes include
the creation and liquidation of claims on, or by, the rest
of the world.
Reserve Assets
Reserve Assets are those external assets that are readily
available to and controlled by monetary authorities for
meeting balance of payments financing needs, for
intervention in exchange markets to affect the currency
exchange rate, and for other related purposes (such as
maintaining confidence in the currency and the
economy, and serving as a basis for foreign borrowing).

Balancing Item (Net Errors & Omissions)

A current account surplus or deficit should correspond to
an equivalent outflow or inflow in the capital and
financial account. In other words, the two accounts
should add to zero. In fact, as data are compiled from
multiple sources, the two balance of payments accounts
rarely equate. As a result, the balancing item is the net
unobserved inflow or outflow needed to balance the
accounts.

DEPARTMENT OF STATISTICS

BERMUDA BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION

WHAT
IS
THE
INTERNATIONAL
INVESTMENT POSITION (IIP)?*

derivatives and employee stock options (ESO), and

reserve assets.

The international investment position (IIP) is a record of

Bermuda residents investment abroad and nonresidents investment in Bermuda. The IIP shows the
balance sheet position of financial claims on nonresidents as assets and non-residents claims on
Bermuda as liabilities. The balance between these two
positions represents the IIP; that is, an excess of assets
over liabilities indicates a positive contribution to the
nations net wealth and the reverse signifies a negative
contribution.

Currency and deposits

Currency consists of notes and coins that are of fixed
nominal values and are issued or authorized by central
banks, monetary authorities such as the BMA or
governments.
Deposits include all claims that are (a) on the central
bank and other deposit-taking corporations; and (b)
represented by evidence of deposit.

WHY IS THE IIP IMPORTANT TO MEASURE?*

Debt securities

The composition of the IIP allows financial analysts to

assess the vulnerability of the economy to changes in
external market conditions. Details from the IIP can
highlight mismatches in maturity of instruments and
currency that can affect an economys ability to service
debt in the face of shock; financial structure problems;
solvency problems and dependency problems where
overreliance on another economy can present contagion
concerns. Therefore, the IIP allows for a more in depth
analysis behind balance sheet weaknesses that can lead
to a modern-day financial crisis.

Debt securities are negotiable instruments serving as

evidence of a debt.
Loans
Loans represent the extension of money from Bermuda
residents to non-residents and vice versa, with an
agreement that the money will be repaid.
Insurance, pension, standardized guarantee
schemes

DEFINITIONS AND NOTES

Insurance, pension, and standardized guarantee schemes

all function as a form of redistribution of income and
wealth mediated by financial institutions.

Direct Investment

Other accounts receivable/payable

Direct investment represents the value of long-term

capital owned in subsidiaries, affiliates and branches by
investors in a position to exercise control or a significant
degree of influence on the management of the enterprise.
A measure of total investment controlled in Bermuda by
foreign direct investors, or abroad by Bermudian direct
investors, indicates the leverage type impact of
ownership.

Other accounts receivable/payable consists of trade

credit and advances between Bermuda and non-residents
and, other miscellaneous receivables/payables.

* Source: IMF Balance of Payments and International Investment

Position Manual, Sixth Edition (BPM6)

Portfolio Investment
Portfolio investment abroad by Bermuda residents and in
Bermuda by non-residents is defined as the holding of
debt or equity securities other than those included in
direct investment or reserve assets.
Financial Derivatives
A financial derivative contract is a financial instrument
whose value is based on the value of an underlying
security such as a stock or bond, commodity or other
financial instrument.
Other investment
Other investment is a residual category that includes
positions and transactions other than those included in
direct investment, portfolio investment, financial

Published by the Government of Bermuda

April 2015
The Cabinet Office
Department of Statistics
Cedar Park Centre,
48 Cedar Avenue, Hamilton HM 11
P.O. Box HM 3015
Hamilton HM MX, Bermuda
Tel: (441) 297-7761, Fax: (441) 295-8390
E-mail: statistics@gov.bm
Website: www.statistics.gov.bm

DEPARTMENT OF STATISTICS