Aegon reaps benefits of Dutch residential mortgage boom

first_imgProgress, the €4.5bn pension fund for Unilever, was among the first investors in Aegon’s mortgages fund, committing 5% of its assets to the vehicle last year. At the time, it said it expected its investments in home loans would generate 2.5% more in returns than the market rate.It also cited its desire to increase diversification within its investment portfolio, as well as heed the “call from society” to raise local investment.The €1.5bn pension fund of coffee processor Douwe Egberts (DEPF) also recently announced that it, too, would invest 5% of its assets in the Aegon fund.It said it expected to achieve better returns against “very limited” additional risk, “as most of these mortgages have been issued under government guarantee (NHG)”.Meanwhile, asset manager Syntrus Achmea has also seen its Particuliere Hypothekenfonds grow rapidly.The fund, which issues mortgages to consumers directly, is currently 78% home loans under NHG.According Hugo Ouwehand, the company’s mortgages director, 42 Dutch pension funds have committed a total of €3.8bn to date – not only for diversification purposes, he said, but also to improve risk/return profile and benefit from the spread between swap and market rates.Among the participants in Syntrus Achmea’s fund is the €38bn metal scheme PME.Ouwehand said he expected €1bn in inflows this year, after the vehicle posted increases of €450m and €880m in 2012 and 2013, respectively.He also confirmed that net returns over the last five years had averaged at 6.6%.However, he argued that the Dutch housing market had already “passed its lowest point”, and that pressure on returns would increase.Earlier this year, the Dutch Mortgage Funding Company (DMFCO), with its Munt Hypotheken, established itself as an additional option for direct institutional investment in residential mortgages.Recently, the €55bn metal scheme, the €18bn pension fund for the printing industry (PGB) and the €6.8 scheme for steel works (Hoogovens) committed €2bn in total to the DMFCO scheme.Jeroen van Hessen, a partner at DMFCO, said he expected the vehicle to attract €3bn in total within the next 18 months.Dutch pension funds are still waiting for further developments on the Nederlandse Hypotheek-instelling (NHI), a new institution that is to issue government-backed mortgage bonds.However, the start of the NHI, which aims to issue €25bn in mortgage bonds over the next five years, has already been delayed by several months, following an EU investigation into possible state support.Unilever’s Progress indicated that it was not interested in investing in NHI-issued mortgage bonds, arguing that the NHI would focus on old mortgages, which it said were likely to generate a lower risk premium.Combined mortgage debt in the Netherlands amounted to €637bn at the end of 2013. Aegon Asset Management is among the fund managers benefiting from a shift towards Dutch residential mortgages in recent years, with pension funds looking increasingly for alternatives to government bonds. Aegon AM’s Dutch Mortgage Fund – launched in August 2013 – has already attracted more than €1.8bn in institutional investment.The company said it had returned more than 5% over the first three quarters of 2014, but declined to provide further details on the expected growth of the fund.Aegon’s Dutch Mortgage Fund is currently 81% guaranteed home loans, with a loan-to-value ratio of up to 106% and a duration of 7.2 years on average.last_img read more

NPFL: Kano Pillars Pile Pressure on Lobi with Win against Katsina…

first_imgKano Pillars have now shot within striking distance of Nigeria Professional Football League (NPFL) leaders Lobi Stars after they beat Katsina 3-1 in a Northwest Derby yesterday.Pillars now have 35 points from 21 matches, two points behind Lobi Stars, who have played two games less.NPFL leading scorer Junior Lokosa scored a brace and provided an assist for Pillars, while Destiny Ashadi pulled a goal back for Katsina United. Champions Plateau United moved to third place after they beat Nasarawa United 2-1.The Jos team now have 33 points after 20 matches.Abia Warriors have also climbed up the standings courtesy of a 1-0 win at MFM FC.The Umuahia club is now eighth on 29 points.Sunshine Stars eased their relegation fears when they stopped bottom team Heartland 2-1 at home.Akwa United, Kwara United, FC Ifeanyiubah and Rivers United all recorded away wins at Enugu Rangers, Niger Tornadoes, Yobe Desert Stars and El Kanemi Warriors, respectively.MATCH DAY 21Tornadoes 1-1 Kwara UtdKano Pillars 3-1 Katsina UtdPlateau Utd 2-1 NasarawaGo Round FC 1-0 Wikki El Kanemi 1-1 Rivers UtdMFM FC 0-1 Abia WarriorsRangers 0-0 Akwa UtdYobe Stars 1-1 IfeanyiubahSunshine 2-1 HeartlandShare this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegramlast_img read more