BNP Paribas Asset Management first Dutch asset manager to launch mortgage fund with binding sustainable selection criteria
On September 29, the BNP Paribas Dutch Residential Mortgage Fund was launched. This mortgage fund is unique in terms of sustainability because it is the only provider in the market to use binding selection criteria. Dynamic Credit, subsidiary of BNP Paribas Asset Management and investment manager of the fund, will only finance homes with energy label D or worse if they provide an improvement plan to reach label C or better.
The energy consumption of households is responsible for a significant portion of the total emissions in the Netherlands. Lowering emissions is crucial and this can be achieved through more efficient energy use or switching to other forms of energy. Making the housing stock more sustainable is a key objective of the Dutch Climate Accord for the built environment, but the objective is getting out of reach. At the same time, institutional investors are looking for opportunities to make a demonstrable impact with their investments. With the BNP Paribas Dutch Residential Mortgage Fund, Dynamic Credit connects this carbon reduction target and market demand: it makes the Dutch housing market more energy efficient and caters to the institutional investor demand for impactful investments.
Jan-Lodewijk Roebroek, CEO of BNP Paribas Asset Management in the Netherlands, said: "We see more and more clients looking more closely to their objectives regarding risk, return and sustainability. The BNP Paribas Dutch Residential Mortgage Fund is a great addition to our sustainable product range for clients wanting to invest in the sustainability of the Dutch housing stock."
Tonko Gast, CEO of Dynamic Credit, said: "To meet the sustainability objectives for Dutch homes, improving the energy efficiency of the Dutch housing stock must be accelerated. Our fund’s unique approach achieves significant sustainable impact by targeting properties with relatively poor energy performance. Institutional investors can participate with the same attractive risk/return profiles as regular mortgage funds, complemented by demonstrable impact.”
The mortgages in the fund are provided through the bijBouwe mortgage label, which is managed by Dynamic Credit. Consumers seeking financing for a home with energy label of D or worse will only be helped if they provide an improvement plan to make the home more sustainable to label C or better. The investment needed will be provided from a construction deposit as the improvement plan is executed. Monitoring this increases the chance of the improvement plan actually being implemented.
Disclaimer Dynamic Credit Partners Europe B.V. (‘Dynamic Credit’) is a registered investment company (beleggingsondernemingsvergunning) and a registered financial service provider (financiëel dienstverlener) with the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten). This presentation is intended for informational purposes only and is subject to change without any notice.The information provided is purely of an indicative nature and is not intended as an offer, investment advice, solicitation or recommendation for the purchase or sale of any security or financial instrument. Dynamic Credit may in the future issue, other communications that are inconsistent with, and reach different conclusions from, the information presented herein. Dynamic Credit cannot be held liable for the content of this presentation or any decision made by a third party on the basis of this presentation. Potential investors are advised to consult their independent investment and tax adviser before making an investment decision. An investment involves risks. The value of securities may fluctuate. Past returns are no guarantee for future returns.