Pension Funds have Only 14 Percent Invested in the Netherlands
THE HAGUE, 28/08/13 - Dutch pension funds invest only 14 percent of their capital in the Netherlands, according to research by the Dutch central bank DNB.
At the end of March, of the total capital of nearly 960 billion euros, 134.9 billion euros was invested in the Netherlands. Of this, 12.7 billion euros was invested in Dutch mortgages and 1 billion euros in the small business sector.
"The figures are important in the current social discussion over the role of the pension funds in loans to corporations and households in the Netherlands," the DNB said. It can not influence the geographical spread of the investments. "Under the current parameters, the DNB must ensure that the investments are in the interests of the participants in the pension funds and that the risks are competently managed."
A large portion of the 134.9 billion euros invested in the Netherlands is in fixed-interest paper: 87.1 billion euros. These comprise Dutch state bonds (43.5 billion euros), mortgages (12.7 billion), corporate bonds (14.0 billion euros) and cash and short-term accounts receivable (16.9 billion euros). Of the total Dutch pension fund property investment of 91.3 billion euros, 21.7 billion euros is in Dutch property.
The results are based on a survey of 30 large Dutch pension funds which manage a combined 81 percent of the total capital. These figures have been adjusted to cover the entire sector.