Institutional investors invest more abroad
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