The Achmea Dutch Residential Mortgage Fund, managed by Syntrus Achmea Real Estate & Finance, now has a total size in excess of €12 billion, thanks in part to the participation of five new institutional investors. Last year, Syntrus Achmea acquired a total of €1.5 billion of new mandates for the largest mortgage fund in the Netherlands.
‘This growth clearly shows the confidence placed in mortgages as an asset class and in the balanced strategy of the mortgage fund,’ says Ido Esman, senior manager Fund Management Mortgages at Syntrus Achmea. ‘Even during the present coronavirus pandemic, mortgages are proving to be a robust investment with a favourable risk/return profile, which are increasingly allowing investors to fulfil their ESG ambitions.’
With the addition of the five new institutional investors, the Achmea Dutch Residential Mortgage Fund, established in 1997, now has over 50 participants. Esman: ‘The size of the fund makes it possible to provide a certain degree of liquidity from the monthly cash flows. As a result, investors can profit from the illiquidity premium offered by mortgages while the fund still provides some liquidity. In addition, economies of scale allowed for a recent reduction of the management fee. That in turn immediately translates into a higher return for the benefit of our participants.’
In collaboration with Centraal Beheer (also part of Achmea), Syntrus Achmea supports residential mortgage clients in making their home more sustainable. The period before relocating to the newly bought house is particularly suitable for such effective activities, explains Esman. ‘Many people actually want to do this but are put off by all the fuss and bother. We can greatly simplify the entire process for them with the help of suitable suppliers that we have screened quite thoroughly beforehand. When originating new mortgages, we supply the mortgage intermediary and the consumer with detailed information about the possibility of obtaining additional financing for upgrading sustainability and implementing energy saving measures.’
In addition to the fund solution, Syntrus Achmea offers institutional investors the option of building their own mortgage portfolios. Through these separate accounts, investors can choose a portfolio with a risk profile of their choice. In total, Syntrus Achmea manages almost 28 billion in mortgages for its clients. The ambition is to grow in the coming years to a market share of 5 percent on the mortgage market.