Institutional investments up in 2003

15/11/2004 10:00

The value of investments by institutional investors increased from 764 billion euro in 2002 to 823 billion euro in 2003, thus approaching the level of 2000-2001 (more than 830 billion euro).

Stock market picks up

Share prices largely account for the amount invested by institutional investors. According to a rough estimate investments went down 7 billion euro in 2000, 60 billion euro in 2001 and 85 billion euro in 2002. Due to the stock market recovery in 2003 an appreciation of 34 billion euro was realised.

Investments by institutional investors

Investments by institutional investors

More shares

Due to a revival of the stock market and additional acquisitions to the amount of 16 billion euro the proportion of shares in the investment portfolios of Dutch institutional investors rose from 37.0 to 40.4 percent in 2003. The value of bonds decreased slightly from 35.6 to 35.3 percent in 2003, in spite of additional acquisitions worth 26 billion euro. Depreciation of the exchange rate, especially of the dollar, largely counterbalanced profits effected by the falling interest rate.

Investments in shares and bonds

Investments in shares and bonds

Greater share for foreign investments

The upward trend of investing abroad continued in 2003. In 2003 total investment by Dutch institutional investors abroad amounted to 57.7 percent of the total investment portfolio, 3.4 percentage points up on 2002. The increase was mainly caused by acquisition of foreign shares.

Investments abroad

Investments abroad

Compared to other OECD countries, relative investments of Dutch institutional investors are considerable. The Netherlands is the third largest investor expressed as a percentage of the GDP after Luxembourg and Switzerland. This relatively high position has to do with the way in which the Dutch pension scheme is organised.

Institutional investments worldwide

Institutional investments worldwide

John Gebraad