Syntrus Achmea Real Estate & Finance will invest in residential mortgages on behalf of Pensioenfonds Recreatie ["Pension Fund for the Recreation Industry"]. As of 1 December 2017, the mandate will be carried out in full by the PVF Private Mortgage Fund of Syntrus Achmea RE&F.
"Pensioenfonds Recreatie is looking to create a portfolio with returns that are spread out evenly across multiple economic scenarios. Adding mortgage investment contributes to this objective in a positive way. After an extensive search, we opted for the PVF Private Mortgage Fund because it is a robust fund with a long-term track record and a prudent risk management policy," says Eiko de Vries, Chairman of Pensioenfonds Recreatie. The fund was advised in its selection by AF Advisors and Cardano.
The PVF Private Mortgage Fund, which celebrates its 20th anniversary this year, has a total of 52 institutional clients including Pensioenfonds Recreatie, and has a size of approximately €6 billion. Over the last five years, the fund achieved an average return of 5.50 percent. Since its establishment in 1997, total losses due to non-recoverable loans represent 0.03 percent of the portfolio.
"Residential mortgages have been given a permanent position in our clients' investment portfolios," says Ido Esman, Director Fund Management Mortgages at Syntrus Achmea RE&F. "This asset class has an attractive risk-return profile. The expected returns are higher than for government bonds, while the risk is limited. Mortgages also offer diversification benefits in the fixed-income values portfolio."
Pensioenfonds Recreatie provides pensions for (former) employees in the recreation industry. Approximately 1,400 employers are affiliated with the fund, with a total of over 82,000 (former) employees. Around 1,800 persons have retired under the pension scheme.