Plan to boost retail ownership in Germany

Oct 13, 2009

DIRK announces campaign as private investor numbers slump

The German IR association (DIRK) is planning a campaign to boost the number of private investors in German companies.

The move comes as the number of retail shareholders in the country continues to decline. According to data from trade body Deutsches Aktieninstitut (DAI), the number of German individuals who invest directly in listed companies has fallen to 3.4 mn this year from 6.2 mn in 2000.

Kay Bommer, general manager of DIRK, says he views it as the society’s role to combat this fall. ‘It’s time for someone to stand up and make the case for equity,’ he comments. Details of the campaign will be clarified over the next couple of weeks, adds Bommer.

DIRK is being spurred on in its campaign by the findings of its latest members’ survey, which revealed two in three companies plan to maintain their current level of private investors. Furthermore, one in five respondents say they want the level to increase.

Respondents say the main reason they want to increase the level of private investors is to combat share price volatility. On average, retail shareholders hold 20 percent of issuers listed on the prime standard in Frankfurt, according to DAI.

By Tim Human