ASR Separate Account Mortgage Fund

17 November 2021 | 3 min. readingtime

Investing in Dutch mortgages

We have been providing home mortgages in the Dutch market for more than 60 years. Having kept those loans for ourselves for many years, we opened up the option to invest in a.s.r. mortgage loans to external investors a few years ago.

Mortgage loans are a good investment for professional investors. Dutch home mortgages have a low risk profile given that historically the loan losses have been low. Interesting margins are achieved in the Netherlands, compared with mortgage loans in other European countries. We therefore consider Dutch mortgages a reliable addition to a well diversified (fixed income) portfolio. Institutional investors have already invested approximately € 9 billion in a.s.r. mortgage loans.

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Customised portfolio

With the ASR Separate Account Mortgage Fund, we offer institutional investors a customised solution to invest in prime Dutch home mortgages. Investors have their own Dutch home mortgage account, without sharing the risk with or being dependent on other investors. Investors can choose the maturity, LTV ratio and share of mortgages backed by a National Mortgage Guarantee (Nationale Hypotheekgarantie, NHG). As at November 2021, approximately € 1,400 million has been invested through the ASR Separate Account Mortgage Fund. There are three unitholders with their own compartments. The minimum investment amount is € 150 million.

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Sustainability

The fund pursues a progressive ESG policy and promotes sustainability characteristics by optimising the portfolio in terms of home energy efficiency and trying to promote access to the housing market for first-time buyers. The ASR Separate Account Mortgage Fund therefore falls under SFDR classification 8.

More information is available in Annex VI of the information memorandum, which is available on request.

Advantages of the ASR Separate Account Mortgage Fund

  • ASR itself also invests through the ASR Separate Account Mortgage Fund (full alignment).
  • No pre-financing: ASR Leven produces mortgages, and payment takes place upon investment.
  • Independent external Supervisory Board.
  • We charge a higher margin on interest-only mortgages of 0.2% to 0.3%.
  • We do not give a discount on A-label homes: We actively encourage homeowners to implement sustainability measures in their homes.
  • ESG is key in product development (launch of the first-time buyer loan, sustainability mortgage, etc.).
  • Good network among smaller and medium-sized intermediaries.
  • No derivatives or money market funds are used.
  • No unpleasant surprises regarding costs: You pay an all-in fee.
  • Mortgages
  • Sustainability

Author

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Rene Berenschot

Head of institutional clients

René is responsible for sales and all institutional clients.

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