Dutch residential mortgages provide an interesting risk & return proposition. The limited expected loss and the possibility to originate ‘green’ mortgages makes this an attractive type of investment for our portfolios. It also offers diversification benefits compared to other fixed income asset classes and the long-term investment horizon matches that of our pension fund's liabilities. Besides this, mortgage investments are closely correlated to movements in interest rate (swaps) and thus contribute to the liability hedge of our pension fund assets.
Billion euros AUM*
Mortgages provide a long term investment horizon. The risk profile for Dutch mortgages has commonalities with the liability structure of pension fund liabilities.