Voluntary housing cooperations should only invest in shares when they have adequate liquidity and think long-term (25 years). Cooperations manage EUR 8 bln in assets, of which 6% in shares and 6% in other funds, such as bonds. ?Investing in funds where substantial risks are involved is to be avoided?, according to CFV (Centraal Fonds Volkshuisvesting) in its report ?Treasury by voluntary housing cooperations?.
The watchdog of these corporations advises the minister of Housing to publish guidelines so that short-term investments in shares will be prohibited. The guidelines should specify what corporations should publish regarding their investment strategy, like objectives, risk profiles and limits to more risky investments. ?Although we did not find any prove that housing corporations have high risk investments, at the same time there are no guarantees that prohibit them from doing so?, according to CFV Director Jan van der Moolen
(source: Financieel Dagblad)