Global Risk Service

Twelve Investment Types

1. Dollar-denominated bank loans to sovereign borrowers: this investment type carries the full faith and credit of the domestic government, and is free from risks associated with exchange-rate fluctuation and currency controls.
2. Dollar-denominated bank loans to domestic banking institutions: this investment type is not explicitly guaranteed or insured by the domestic banking system or the government, although implicit guarantees may mitigate overall risk. It is free from risks associated with exchange-rate fluctuation and currency controls.
3. Domestic equities (excluding American Depository Receipts): this investment type is a diversified portfolio of non-controlling equity shareholdings in private-sector companies located in the country under consideration. In countries where a stock exchange operates, this is assumed to be a portfolio of listed shares. Where there is no exchange, this is assumed to be a portfolio of minority interests in several of the larger companies operating in the country.
4. Manufacturing (for Domestic Market): This investment type pertains to manufacturing or service operations located in the country of interest, for which the overwhelming share of production is intended for the domestic market.
5. Manufacturing (for Export) (or export-oriented DFI): this investment type pertains specifically to a manufacturing operation for which the overwhelming share of output is intended for export. Much or all of capital goods are imported, as is a part of operational inputs.
6. Oil and Gas (Upstream): this investment type includes any exploration or development activity involving oil- or gas-related resources in the host country, intended primarily for export purposes.
7. Mining: this investment type corresponds to business activities that involve the extraction, processing, and transport of non-precious metals and minerals for export.
8. Power Generation: this investment type describes the risks facing a stylized electric power plant, producing mainly for domestic consumption.
9. Exporter/Distributor: this investment type includes the activities of a firm importing goods into the country and distributing them domestically at the wholesale level.
10. Franchiser/Local Retailer: this investment type captures the operations of a business that franchises or owner operates at the retail level in the country.
11. Shipping Services: this investment type includes activities of firms involved in cargo transport or package delivery services to and from the country.
12. Foreign Office: this investment type captures the risks of maintaining a representative office in the host country, typically to perform sales or diplomatic functions.