The remaining real estate on the books will
be disposed of as and when this becomes possible
at attractive prices, and we have no plans for any
immediate new acquisitions.
Group Finance
The year under review was marked by deregul
tion of the money market and capital market,
which manifested itself in numerous innovations
on the financial markets. This development was
coupled with a continuation of the economic
recovery in Western Europe, with a resultant
further improvement in the financial situation as
regards the business community. This, together
with a fall in interest rates both nationally and
internationally, created a climate in which it was
once more possible for companies to go public
or, in the case of companies already quoted on
the stock exchange, to issue new risk capital.
The growing interest in equities on the part
of the general public and institutions alike
resulted in reduced demand for fixed- interest
securities. The reduced availability of funds from
investors in The Netherlands was compensated
for by a relative decline in the borrowing require
ment of the public sector as well as by continuing
ample interest in Dutch bonds on the part of for
eign investors, the latter interest being partly due
to the strength of the guilder. In the last quarter
of the year, interest rates went up on both money
and capital markets, partly as a consequence of
the restrictive policy of the Bundesbank A.G. This
was due to the sharp increase in the money sup
ply in Germany. The aforementioned market cir
cumstances were of little significance as regards
the borrowing activities of FGH since the sale of
assets to Transveer B.V meant that we enjoyed an
ample liquidity position. Accordingly, only a small
amount of long-term funds was borrowed.
In 1986, bonds totaling NLG 194 million
(1985: NLG 416 million) were issued. In addition,
a Euroguilder serial note in an amount of NLG
75 million was issued at 3/16% above 6 months
AIBOR - 1986/1989 (NLG 25 million), 1986/
1990 (NLG 25 million) and 1986/1991 (NLG 25
million).
As to the future, in view of the guarantee
ultimately provided by AEGON N.V, we do not
expect any problem in going to the market for
the funds needed to finance our business and in
obtaining them on good terms.
Other Activities
1986 was characterized by the internationaliza
tion of the financial markets. Even Amsterdam
was not unaffected by the development.
Various foreign banks acquired interests in
Dutch stockbroking houses. Some ’foreigners’
even set up their own operations. Our collabora
tion with Banque Gutzwiller, Kurz, Bungener
S.A. led to various activities in the field of issues
in 1986. Total commission income in 1986 was
NLG 18.8 million, which represents a rise of 24%
compared with the previous year. Margins in the
securities business, however, are coming under
increasing pressure, and this trend is likely to
continue in the years ahead. Nevertheless, assum
ing that the mood of the stock exchange remains
buoyant, we expect Van Haften Co N.V to con
tinue to be able to make a substantial contribu
tion to the group result.
The results of Kok Groep B.V (real estate mana
gers and brokers and insurance intermediaries)
were down on the previous year’s owing to high
automation costs, among other things. The con
tinuing process of automating activities, however,
will bear fruit in due course.
14
cl~
Van Haften Co N. V
Kok Groep B. V
