Pension funds ABP, BpfBouw and SPW are expanding their investments in mortgages for Dutch households. Through their pension administrator APG, the three pension funds have joined DMFCO’s platform, which invests in residential mortgages provided by MUNT Hypotheken.
This investment will increase the three pension funds’ invested assets in Dutch mortgages by a total of €1.7bn. ABP’s investment in the sector rises to €4bn, BpfBouw to €2bn, and SPW to €1bn, it was announced.
With the entry of these three pension funds, nine of the 10 largest Dutch pension funds in the Netherlands now invest in residential mortgages through DMFCO.
Since the launch of MUNT Hypotheken in 2014, the mortgage lender has become an important player in the Dutch mortgage market, significantly changing the market for both investors and consumers.
For consumers, MUNT Hypotheken introduced several improvements that have become new market standards, including penalty-free prepayment from the borrower’s own funds.
Rogier van der Hijden, managing director of DMFCO, said he is looking forward “to using APG and its pension fund clients’ experience on ESG to further develop our mortgage business”.
He added: “Our pension fund clients prefer to invest more in the Netherlands. The Dutch housing market offers the perfect opportunity. For our clients, mortgages continue to offer added value in the investment portfolio.”
Kay Mennens, senior portfolio manager at APG, said that there were two main advantages to investing in mortgages: “They provide a solid investment in the Dutch housing market with a stable return while assuring Dutch homeowners of a good mortgage with fair conditions.”