On the occasion of the 250th anniversary of the establishment of the world's first investment fund, Eendragt maakt Magt, a special gong ceremony took place today at Beursplein 5. At the invitation of DUFAS, the industry association for asset managers, Euronext Amsterdam and Stichting Capital Amsterdam, Jos Heuvelman opened the Amsterdam Stock Exchange on behalf of the Netherlands Authority for the Financial Markets For the first time in history, the unique deed of incorporation of Eendragt Maakt Magt was presented at the ceremony.
Certificate of incorporation world's first mutual fund exhibited for the first time after ceremonial gong ceremony at Beursplein 5
On the occasion of the 250th anniversary of the establishment of the world's first investment fund, Eendragt maakt Magt, a special gong ceremony took place today at Beursplein 5. At the invitation of DUFAS, the industry association for asset managers, Euronext Amsterdam and Stichting Capital Amsterdam, Jos Heuvelman opened the Amsterdam Stock Exchange on behalf of the Netherlands Authority for the Financial Markets For the first time in history, the unique deed of incorporation of Eendragt Maakt Magt from 1774, which was recently found in the Stadsarchief Amsterdam, was publicly presented to the public and press.
Eendragt maakt Magt was the world's first investment fund, founded in 1774 by Amsterdam broker and merchant Abraham van Ketwich. The fund aimed to reduce the risk for individual investors by pooling and spreading their investments across several foreign bonds. This also allowed investors with limited funds to participate in a diversified portfolio. Van Ketwich established the fund in the aftermath of the financial crisis of 1772-1773, a period marked by bankruptcies of trading houses and banks that hit European economies hard. Many investors had lost confidence in stocks, so Eendragt maakt Magt focused primarily on bonds issued by banks and governments in Austria, Denmark and Russia, among others, as well as plantation loans in the West Indies. Despite its innovative design, the fund was liquidated in 1824, partly as a result of the Fourth English War and political upheavals in Europe. Nevertheless, Eendragt maakt Magt , a Dutch world first, laid the foundation for all investment funds and ETFs in the world and introduced the concept of risk diversification through collective investment.
Although the Netherlands is known as a savings country, the Netherlands in particular is an investment country par excellence with the first IPO, the first joint-stock company and thus the first investment fund ever. "Investment funds have historically made owning companies and sharing in their returns possible for a much broader group of people than was possible before the introduction of investment funds. And the extraordinary thing is that after 250 years, the founding document of Eendragt maakt Magt still sounds quite current and almost reads like a modern prospectus "," said Cherelt Kroeze on behalf of the Capital Amsterdam Foundation.
"Too often in the Netherlands we dwell on the risks of investing and not enough on its benefits. Today, we do by dwelling on the founding of Eendragt maakt Magt 250 years ago. Recent research commissioned by DUFAS shows that the Dutch are concerned about their financial security and young people in particular see investing as a solution. At the same time, the research shows a large knowledge gap. Therefore, we call on the financial sector and the government to do more work on financial education. By warning Dutch people not only about the risks of investing, but also about the risks of not investing," said Jeroen van Wijngaarden general director DUFAS.
From DUFAS, we call on the government, the industry and the public to jointly increase knowledge about investing. Only through better education can more Dutch people start investing responsibly and thus strengthen their financial position.
