Why does Buma/Stemra invest and what is the policy?
Because Buma/Stemra licenses and collects money for the use of music before distribution is possible, there is always a certain amount of money that is waiting to be distributed to rightholders. In order to keep the net cost of the organisation as low as possible for its rightholders, Buma/Stemra has, in the past, decided to invest this money optimally and within set risk standards. The financial gains are used for the benefit of the organisation, which ultimately reduce costs for rightholders.
The investments of Buma/Stemra have been in shares and bonds. As much as possible has been invested in standard combined packages consisting of separate, stock market listed funds. At the moment, more than € 200 million is invested. Our investment policy is sensible, which means that the risks of the investments are kept as low as possible. Investments are spread by us as widely as possible in various funds.
The investment policy has been approved by the highest body of Buma/Stemra, the General Members Meeting, and is executed by an Investment Committee consisting of members of the Board of Buma and Stemra, together with an external asset manager.