Dutch Mortgages Strategy
The mortgage market is an essential component of the Dutch financial landscape, exceeding EUR 830 billion at the end of September 2024.1 And with strong underlying fundamentals, government support2 and generally low default rates, Dutch mortgages can represent a relatively secure asset class for investors seeking long-term income.
Strategy features
Flexible & bespoke
Investors benefit from a ring-fenced portfolio of high-quality residential Dutch mortgages, tailored to their individual risk/return and liability requirements. Investors can also change their preferences during or after the ramp-up period, as well as increase, pause or stop their commitment.
Extensive asset class knowledge
The strategy is managed by a specialist Dutch asset manager and direct lender, Dynamic Credit, with over 10 years of experience investing in Dutch residential mortgages and more than EUR 10bn in assets under management.³
Environmental focus
Dynamic Credit is a front-runner in promoting sustainability through mortgage loans, and the strategy aims to actively improve the energy efficiency of Dutch housing stock by applying rigorous environmental criteria.
Investment philosophy
Dynamic Credit believes Dutch mortgage loans offer high relative value compared to other fixed income products with similar levels of risk. Leveraging its local presence, extensive expertise and proprietary mortgage lending platform (bijBouwe4), Dynamic Credit seeks to provide diversified exposure to the asset class.
Investment process
The strategy follows a disciplined six-step process:
- Investment commitment
- Marketing and distribution
- Underwriting
- Servicing
- Monitoring and fraud prevention
- Investment portfolio
Team and expertise
Based in Amsterdam, Dynamic Credit’s Dutch Mortgages team is led by Jasper Koops, 11+ years of industry experience. Team members have extensive investment experience through market cycles and a deep understanding of the Dutch mortgage market.
Dynamic Credit joined BNP Paribas Asset Management in 20225 and is fully integrated within BNP Paribas’ 100+ strong Private Assets investment division. It enjoys the support of various BNP Paribas Asset Management teams including our dedicated Sustainability Centre, Quantitative Research Group, Macro Research team, and the wider BNP Paribas network.
Investment risks
Private assets are investment opportunities that are unavailable through public markets such as stock exchanges. They enable investors to directly profit from long-term investment themes and can provide access to specialist sectors or industries, such as infrastructure, real estate, private equity and other alternatives that are difficult to access through traditional means. Therefore, any investment in private assets does require careful consideration, as they tend to have high minimum investment levels and may be complex and illiquid, as well as may be exposed to specific risks, including:
- ILLIQUIDITY OF THE SUB-FUND’S SHARES
- ILLIQUIDITY OF THE SUB-FUND’S INVESTMENTS
- CREDIT QUALITY
- LIQUIDITY RISK
- LONG-DATED NATURE OF MOST INVESTMENTS
- CONCENTRATION
- MARKET RISK
- INTEREST RATES
- FOREIGN EXCHANGE RATES AND HEDGING
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID.
[1] De Nederlandsche Bank (DNB), September 2024
[2] Some Dutch mortgage loans are eligible for Nationale Hypotheek Garantie (NHG), a Dutch National Mortgage Guarantee, backed by the Dutch State
[3] Dynamic Credit, December 2024
[4] Established in 2015, bijBouwe is an innovative platform for investments in Dutch mortgage loans. Trademark, copyright, and other intellectual property rights are and remain the property of their respective owners.
[5] BNP Paribas Asset Management, as of December 2024
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Important information
BNP PARIBAS ASSET MANAGEMENT Singapore Limited, “the investment management company”, is a company incorporated in Singapore with its registered office at 20 Collyer Quay, #01-01 Collyer Quay, Singapore 049319, Company Registration No. 199308471D.
This material is issued and has been prepared by the investment management company. This advertisement has not been reviewed by the Monetary Authority of Singapore. It contains opinions and statistical data that are considered lawful and correct on the day of their publication according to the economic and financial environment at the time.
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- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or;
- investment advice.
This document does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors should consult their own professional advisors in respect of legal, accounting, domicile and tax advice prior to investing in the fund in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Investors considering subscribing for the fund should read carefully the most recent prospectus, offering document or other information material and consult the fund’s most recent financial reports before investing, as available from the investment management company or its authorized distributors. Given the economic and market risks, there can be no assurance that the fund will achieve its investment objectives. Investments in the fund are not deposits or other obligations of, or guaranteed, or insured by the investment management company or its authorized distributors or their affiliates and are subject to investment risks, including the possible loss of principal amount invested. Returns may be affected by, amongst other things, investment strategies or objectives of the fund and material market and economic conditions, including interest rates, market terms and general market conditions. Past performance of the fund or the managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the fund or the manager. The value of shares in the fund, and the income accruing to the shares (if any), may fall as well as rise and investors may not get back the full amount invested. Funds which are invested in emerging markets, smaller companies and derivative instruments may also involve a higher degree of risk and are usually more sensitive to price movements.
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