Dutch shares offer investors the opportunity to build up a varied and interesting portfolio, writes Jan Maarten Slagter.

‘Does Amsterdam still do it for investors?’
The journalist who asked the question was looking for affirmation rather than information.
‘The private investor is battered and bruised, institutional investors are taking their money abroad and IPOs are not forthcoming.’
Admittedly Amsterdam is becoming a minor financial player in an increasingly competitive world. Euronext represents just 1% of the total world share market, quite a come down from the 100 % of the 17th century when VOC shares were bought and sold on the world’s first stock exchange.
And considering that economic growth is concentrated in countries like China and Brasil, and that one listed company after another has been cold shouldering the Damrak for the last few years, it would indeed be fair to ask which modern investor in his right mind would come to Amsterdam.
The answer is that they do, the majority of VEB members among them. And they know what they are doing. The services of NYSE Euronext might be a little sketchy at times but those who restrict themselves to Dutch shares are in a position to build up an interesting and diversified portfolio.
Almost all major economic sectors are represented: from the Accell bicycle makers to seed mixtures manufacturers Witte Molen (formerly Alanheri). And everyone between.

International activities
AEX stocks like Akzo Nobel, ASML, Boskalis, Heineken, Royal Dutch Shell and Unilever already hold strong positions on the world markets and their Dutch turnover is comparatively small. In the case of exchange giants Shell and Unilever it’s negligible compared to the more than 100 countries in which they are active.
More than half of most AEX companies’ turnover is realised abroad. Even smaller firms such as Ten Cate, Unit 4 and Aalberts Industries are largely dependent on their international activities.
This makes it fairly easy to profit from the economic growth in other parts of the world. Buying shares on the Amsterdam stock exchange not only reduces the foreign exchange risk, it is also makes it easier to assess companies (most company information is available in Dutch) and comes with the added advantage of avoiding any dealings with foreign fiscal, administrative and corporate government regulations.
As for giving the chairman of the board a piece of your mind, a free afternoon and a train ticket will suffice. And you can do it in Dutch.
There is one final advantage of buying Dutch. Investors have the services at their disposal of a professional, assertive, client-oriented shareholders association. And that is an extremely valuable commodity.
Jan Maarten Slagter is the director of the Dutch shareholders association VEB