Institutional investors invest more abroad

07/11/2006 14:00

The total investment portfolio of Dutch institutional investors rose by 602 billion euro in the period 1995–2005, to 1,069 billion euro. Nearly all of this increase, namely 583 billion euro, was invested outside the Netherlands. 

Two-thirds invested abroad

The trend of increasing foreign investment among Dutch institutional investors continued in 2005. Total foreign investment by institutional investors accounted for nearly two-thirds of the overall investment portfolio at the end of  2005. Ten years previously only just over one fifth of the portfolio was invested outside the Netherlands, five years ago it was nearly half the portfolio.
The introduction of the euro was an important cause of the increased orientation outside the Netherlands.

Investment by institutional investors

Mainly shares and bonds

Foreign investment by institutional investors increasingly consists of shares and bonds. While shares and bonds accounted for 84 percent of total foreign investment in 1995, this had risen to 97 percent in  2005.

Foreign investment

Comparison with domestic investment

Shares and bonds account for a much smaller part of investment inside than outside the Netherlands. In addition to securities, long-term loans such as mortgages constitute a significant component of investment in the Netherlands.

Domestic versus foreign investment

John Gebraad