240 years of investment funds celebrated at Euronext Amsterdam
Euronext, the investment fund industry, and Stichting Capital Amsterdam join in celebrating the 240th anniversary of the investment fund. Toine van der Stee and Hans Janssen Daalen, chairman and managing director of the Dutch Fund and Asset Management Association (DUFAS), sound the gong.
Abraham van Ketwich introduced the world’s first investment fund in 1774. On 7 July of that year he placed an advertisement announcing the creation of the first fund, Eendragt maakt Magt. The name of the fund, which can be translated as “strength through unity”, says a lot about the fund’s strategy: investment for a common account as a means of sharing risk and improving performance. The assumption was that spreading risk was the best way in which to deal with unexpected price falls. “The creation of the first investment fund was a reaction to the crisis of the preceding year. Even then, an economic crisis provided fertile ground for product innovation. Investment funds did not become really popular in the Netherlands until after the crisis of 1929,” according to Cherelt Kroeze of Stichting Capital Amsterdam.
Now, 240 years after its introduction, the investment fund has become an indispensable part of every investment portfolio.
Hans Janssen Daalen, managing director of DUFAS: “The popularity of investment funds is not surprising. Investment funds offer worldwide unlimited access to the financial markets by collectively managed assets. A strong concept, which is proven by its long history.”