To what extent does Van Lanschot Kempen add financial value to the world? And which stakeholders are involved? Below, we explain what contribution Van Lanschot Kempen makes to the financial value creation per stakeholder group: clients, employees, shareholders and society.
Van Lanschot Kempen's financial capital flow consists of all cash inflows and outflows that can be attributed to the organisation in a given financial year. This may be shareholder capital, but also the payment of salaries or taxes.
The financial capital flow is part of our value creation process, shown here schematically:
Van Lanschot Kempen raises financial capital, largely in the form of managed assets. It invests these assets for its clients with the objective of realising an investment return. In this way, Van Lanschot Kempen contributes directly to the preservation and accumulation of assets of its clients. Our organisation also contributes indirectly. By providing loans to homeowners or entrepreneurs, for example, Van Lanschot Kempen gives them the opportunity to build up their own assets.
Besides salaries, Van Lanschot Kempen also contributes to social premiums, pension payments, severance payments, training costs and mobility expenses.
The issuance of new shares or bonds results in the inflow of new capital. Capital providers usually receive a remuneration for their invested capital. For shareholders, this compensation may consist of price gains. In addition, they may receive dividends and/or a return of capital. For bondholders, the compensation is usually the interim price gain (or loss), in addition to the periodic coupon payment.
When clients offer assets for investment, this results in a capital outflow for Van Lanschot Kempen towards companies, governments and other institutions in which they invest. Tax payments, payments to regulators and the purchase of materials also result in a capital outflow for society.
For more information on financial capital, please see our 2020 Annual Report, pages 26-27.