Featured statistic: 55%

Date 23 July 2008

In the first quarter of 2008, Dutch mutual funds managed to expand their share in Dutch household investments slightly, from 54% to 55% at end-March 2008 (Chart).

Chart Competitive position of Dutch mutual funds

The increase may be a turnaround in a declining trend. It is possible that the various measures taken since 2006 to improve the business climate for mutual funds in the Netherlands are beginning to take effect. The (slight) growth took place under difficult circumstances, with Dutch households withdrawing EUR 1 billion from mutual funds in the first quarter, and the stock exchange in the doldrums (MSCI world: -12%); total household investments consequently contracted by 11% to EUR 47 billion.

The expansion of the Dutch share was accounted for by the fact that households’ Dutch mutual fund investments fell less markedly (by 9% to EUR 26 billion) than their Luxembourg mutual fund investments (by 15% to EUR 18 billion). The Grand Duchy is the Dutch mutual funds’ most important competitor for Dutch household investments. Mutual funds based in Luxembourg recorded larger withdrawals by Dutch households than Dutch mutual funds, as well as lower returns. Earlier, Luxembourg had attracted much money from the Netherlands via the Dutch retail market.