rates for long-term funds. The developments in our national economy
such as declining inflation, the surplus on the balance of payments, the
declining government deficit, increasing savings and investments created
an environment in which falling interest rates could be expected. On the
other hand, however, the appreciation of the dollar and the erratic
developments in interest rates in the United States during the first half of
1984 forced up the interest rate on the capital market. Only when it became
apparent that interest rates in the United States had undergone a reversal
was it possible for the capital market interest rates to drop beneath the
1983 end of year level.
Despite the huge deficits which incidently occurred, the money market has
remained relatively stable due to interventions of De Nederlandsche Bank
(Dutch Central Bank).
Considerable interest was shown in investing in fixed-interest securities in
general. This, combined with a renewed faith in FGH ensured that the
upward trend with which 1983 closed was reinforced and continued into
1984. We were able to attract long-term funds totalling Dfl 750 million
through:
- placement of mortgage bank bonds and bond certificates, up to an
amount of Dfl 381 million (1983: Dfl 192 million);
- emission of Dfl 50 million 81/4% Euro-guilder notes 1984-1989;
- emission on the open capital market in Switzerland amounting to
Sw.fr. 110 million, interest 5%%, 1984-85/92.
Such international financing transactions will also be one of the ways in
which we plan to continue to attract funds in the future, on the one hand,
they are a natural extension of our growing international activities, while
on the other hand, such transactions broaden the possibilities of optimally
financing our assets. Furthermore, we plan to strengthen our placement
capacity through further differentiation of our product package, which is
expressed in guilders.
Diversifications
Our diversifications are active in a number of areas closely aligned to our
main business. The activities include bank and securities brokerage (Van
Haften Co), real estate management and brokerage and insurance
brokerage (Kok Groep), and housing and facilities construction (Gebam).
1984 was an extremely successful year for Van Haften mainly as a result of
the favorable conditions on the Amsterdam Stock Exchange.
In particular, a strong growth was realized in the share sector, while the
market share of the fixed-interest sector was maintained at the same level.
The company was able to reap the benefits of the efforts made during the
preceding years to further expand and improve international relations.
The Kok Groep, too, was able to maintain its improved results. Kok
manages around 70,000 units (homes, garages, offices etc.) for investors
in real estate, 1 million square meters of which are industrial facilities. In an
effort to improve its market position in the commercial real estate sector.
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