Tilburg University research confirms long-term focus of Dutch institutional investors


Dutch institutional investors hold the majority of their shares in Dutch listed companies for a long period. More than 80% of the portfolio is held for 5 years or more and at least 55% of the investments are allocated to holdings of at least 10 years. These are the main results of a study, conducted by Tilburg University, on the duration of Dutch equity ownership by large Dutch pension funds and asset managers. The Dutch institutional investors investigated are the nation's largest pension funds ABP, Pensioenfonds Zorg en Welzijn, the pension fund for the care and welcare sector, PME, the industry-wide pension fund for metalektro, and Spoorwegpensioenfonds, the pension fund for the railway transport sector, as well as the Dutch asset managers Robeco (Hollands Bezit fund) and Teslin Capital Management. The study was commissioned by Eumedion and covered, roughly, the period 2003 to the first half-year of 2012.

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Companies appear larger than they are to investors; impenetrable line item in financial statements requires disclosure


A majority of listed companies in Europe appears larger than they are to investors. The consolidated financial statements include subsidiaries in full, even if these subsidiaries are only partly owned. Accounting standards require companies to do so.

Only two line items in the financial statements reflect the actual ownership of subsidiaries: ‘net income to common shareholders’ and ‘common equity’. This is insufficient for investors to properly assess the value and risks of companies. The position paper ‘Full consolidation of partly owned subsidiaries requires additional disclosure’ issued today by Eumedion highlights this issue in detail.

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Eumedion's comments in Financial Times


This year's shareholder season much time was again spend on discussion on remuneration and bonusses. Many Dutch shareholders showed their concern in their dialogue with listed companies. In the United Kingdom a comparable concern is growing, as the Financial Times describes in its article of October 2, 2011. 'Escalating executive pay levels and the mismatch between remuneration and company performance are causing increasing concern among shareholders, regulators, the general public and even politicians.'
Eumedion's executive director was also quoted in this article.

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