Investing in Mortgages under the Future of Pensions Act (Wtp): What Does This Mean for Pension Funds?
Mortgages have become a fundamental cornerstone of pension fund investment portfolios under the Financial Assessment Framework (FtK). The low interest rates of recent years have made these investments even more attractive. But how will the Future of Pensions Act (Wtp) affect mortgage allocations? And what does this mean for the two main pension schemes: the Solidary Pension Scheme (SPR) and the Flexible Pension Scheme (FPR)?
In the first part of this two-part series, we explore the implications of the Wtp for the FPR, focusing on the benefits of mortgage investments. Mortgages offer relatively low risk and an attractive illiquidity premium. Historically, credit losses have been minimal, even during crises like the 2008 financial crisis. Mortgage performance remains strong, with positive prospects driven by the tight labor market and rising house prices.
Read the full article (in Dutch) by Rajesh Sukdeo and Coen van de Laar on the FPR and discover why mortgages are an appealing choice for pension funds in the current investment climate.
In the first part of this two-part series, we explore the implications of the Wtp for the FPR, focusing on the benefits of mortgage investments. Mortgages offer relatively low risk and an attractive illiquidity premium. Historically, credit losses have been minimal, even during crises like the 2008 financial crisis. Mortgage performance remains strong, with positive prospects driven by the tight labor market and rising house prices.
Read the full article (in Dutch) by Rajesh Sukdeo and Coen van de Laar on the FPR and discover why mortgages are an appealing choice for pension funds in the current investment climate.