NETHERLANDS - The net worth of Dutch investment funds has dropped 8% in Q3 2008, pension fund regulator De Nederlandsche Bank reports (DNB).
Along with sharp equity price falls, DNB said the transfer of funds to Luxembourg had also played a part in the funds' net worth decreasing to €71.7bn.
"The write-downs and withdrawals have made the funds' net worth contract by 28% over the five quarters since the beginning of the financial turmoil." DNB said.
"The supervised funds wrote down €5.5bn (6%) on their investments (including exchange rate effects) in the third quarter. The write-down on equities this quarter was the fifth in a row, bringing the total over the past five quarters to 34%."
DNB added that the write-down on the real estate portfolio in 2008 (just under 1% in the third quarter) contrasted sharply with the considerable increases of the preceding years.
It said it was connected with the reduced demand for real estate consequent on the tightening of credit standards.
A price increase of less than 1% was still recorded for bonds this quarter, possibly as a result of the price rises for government bonds, whose popularity had been on the increase, DNB said. Since the onset of the credit crisis, write-downs on investments total €17bn (19%).
Investors withdrew €0.9bn (over 1%) from supervised investment funds in the third quarter. These withdrawals were accounted for by nearly all fund types. This brings total withdrawals since mid-2007 to €5.5bn (6%).
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