Investing in Dutch Mortgages under the Future of Pensions Act (Wtp) – Focus on the Solidary Pension Scheme (SPR)
In the second part of our series on investing in Dutch mortgages under the Future of Pensions Act (Wtp), we focus on the Solidary Pension Scheme (SPR). How does the Wtp influence pension funds’ allocation choices for mortgages within this scheme?
Mortgages have become a fundamental component of pension fund investment portfolios under the Financial Assessment Framework (FtK). The combination of relatively low risks, minimal credit losses, and an attractive illiquidity premium makes mortgages an appealing asset class in pension fund portfolios. This is particularly true for the SPR, where the long investment horizon and the low-risk profile of mortgage investments align well with pension funds’ obligations to their participants.
What makes this even more compelling is that the SPR allows for greater flexibility in making strategic investment choices that can deliver higher returns without compromising stability. The removal of borrowing restrictions, combined with mortgage allocations, offers significant opportunities. Mortgage performance remains robust, with favorable prospects driven by the tight labor market and rising house prices.
In this article (in Dutch), Rajesh Sukdeo and Coen van der Laar explain why mortgages are an attractive investment category for the SPR and how the Wtp further enhances this appeal.
Mortgages have become a fundamental component of pension fund investment portfolios under the Financial Assessment Framework (FtK). The combination of relatively low risks, minimal credit losses, and an attractive illiquidity premium makes mortgages an appealing asset class in pension fund portfolios. This is particularly true for the SPR, where the long investment horizon and the low-risk profile of mortgage investments align well with pension funds’ obligations to their participants.
What makes this even more compelling is that the SPR allows for greater flexibility in making strategic investment choices that can deliver higher returns without compromising stability. The removal of borrowing restrictions, combined with mortgage allocations, offers significant opportunities. Mortgage performance remains robust, with favorable prospects driven by the tight labor market and rising house prices.
In this article (in Dutch), Rajesh Sukdeo and Coen van der Laar explain why mortgages are an attractive investment category for the SPR and how the Wtp further enhances this appeal.