Investor Presentaiton
investment banks. Meanwhile, Other Investments is a residual category which includes
investments which could not be classified as direct or portfolio investments, derivatives and
employee stock options, and reserve assets. These investments are not directly received as
equity or loans to private domestic enterprises or GOCCs. Neither is it directly allocated by
the government for capital expenditures. Moreover, these investments do not include control
or significant influence in the management of recipient domestic enterprises.
The third part of the framework is on the Uses of Investments. Investments received by
private domestic enterprises are utilized for domestic production, consumption, and
accumulation of fixed assets and non-produced assets. The cited uses of investments are
defined in SNA 2008 as follows:
.
•
Domestic production refers to the production of goods and services in the country by
domestic enterprises during a given period of time
Consumption refers to intermediate consumption i.e., the goods and services used up
in production during a given reference period
Accumulation refers to the acquisition less disposals of fixed assets (gross fixed capital
formation) and non-produced assets like land and minerals. Fixed assets are produced
assets such as machinery, equipment, buildings or other structures, and intellectual
property products that are used repeatedly in production over several periods (more
than one year).
Similarly, Government budgetary funds received by the general government as well as
equity and loans received by GOCCs are utilized for the production of services and goods for
the general public, intermediate consumption, and accumulation of fixed assets and non-
produced assets.
For both private domestic enterprises and the government sector, the "uses of
investments" could provide a breakdown for domestic production, intermediate consumption
and capital accumulation by industry sector. A breakdown on asset accumulation by type of
assets could also be provided by the framework.
With the "uses of funds for production and accumulation components", there is flexibility
in looking at the growth of investments in emerging growth areas like intellectual property
products. Accumulation covers acquisition and production of intellectual property products
which is a growing source of economic wealth globally. Intellectual property (IP) refers to
creations of the mind, such as inventions; literary and artistic works; designs; and symbols,
names and images used in commerce. These creations or IP products and their creators are
protected through patents, copyrights, and trademarks. The identification and estimation of
the value of various intellectual property products produced across industry sectors could be
a major interest. In the case of government's intellectual property products, these could also
be classified by industry sector for general government and also for GOCCs. The value of the
income stream coming from these intellectual property products could also be estimated.
Tables 4-5. provide an illustration on the Uses of Investments by Industry Sector and sub-
sectors.
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