DMFCO is a Dutch asset manager and the creator of the mortgage brand MUNT Hypotheken. We offer investors direct access to the Dutch residential mortgage market. We focus on investing in Dutch mortgages. Our clients are institutional investors with a long-term investment objective.
Our portfolio managers build a portfolio according to the investor’s preferred LTV and fixed interest period, striking an attractive balance between risk and return. Our analysts and portfolio managers work closely together to analyse trends and provide our investors with proposals to continuously improve their investment strategy. DMFCO is the asset manager of choice for Dutch pension funds, with commitments currently totalling € 13 billion. Our label, MUNT Hypotheken, has a stable mortgage production of € 300 million per month with the ability to do more.
We are the largest independent asset manager in the Netherlands. Using our investment fund, we invest directly in Dutch residential mortgages through our own mortgage label MUNT Hypotheken. In recent years, we have originated €3.5 billion in Dutch residential mortgages annually. The mortgages are originated via a highly diversified, nationwide network of over 3,500 independent financial advisers, making us the sixth largest mortgage lender in the Netherlands.
Investing in Dutch mortgages is our sole focus. We are not a bank. Investing with DMFCO means investing in mortgages. We offer a transparent, direct investment model, created to offer maximum flexibility to our institutional investors. All aspects of our service are in the expert hands of the experienced DMFCO team, based in one location in The Hague. DMFCO is licensed by the Dutch Financial Markets Authority (Autoriteit Financiële Markten; AFM) to offer and broker mortgage loans.
Through our investment fund, our investors invest directly and exclusively in MUNT Hypotheken for Dutch residential buyers. Since its launch in 2014, MUNT Hypotheken has consistently ranked amongs the top ten Dutch mortgage lenders, with an average monthly production of €300 million. Our analysts are constantly on the lookout for developments on the Dutch mortgage market. Meanwhile, our data centre provides monthly analyses based on market metrics, providing a solid basis for investment decisions.
Investors can tailor their own preferred portfolio of different combinatons of risk categories and fixed interest periods. We focus on adding value by giving our investors great flexibility.
DMFCO’s investment fees are the lowest in the Netherlands. Our business model focusses on outsourcing all non-core processes. As a result, our investors benefit from scale and cost efficiencies.
DMFCO is a member of UN PRI and is committed to the UN Sustainable Development Goals. Our proposition accounts for environmental, social and governance factors.
"Our investors want one entity to take care of
every process that mortgage lending involves."
Marieke Hut, Director Business Development
The Dutch and their mortgages make for a unique story. Despite LTV ratios being amongst the highest, mortgage arrears remain the lowest in Europe in absolute terms (Fitch). The Dutch have a solid reputation for paying off their mortgages, which is supported by the combination of a high level of social security with a legal system that favours the lender.
The role of banks and (institutional) investors is changing. Throughout the world, banks are retracting from the capital supply chain, a trend known as disintermediation. The global disintermediation trend has resulted in more opportunities for other parties to provide residential mortgages. Stricter capital requirements combined with regulation on transparency and selling rules make mortgages less attractive to banks. At the same time, the Dutch Central Bank expects the mortgage market to grow from €670 billion to €800 - 875 billion by 2025 (Kredietmarkten in Beweging, DNB, 2016).
According to the same forecasts, a potential funding gap of €130 to 200 billion will develop, between the actual amounts loaned by banks and what the market needs, creating more opportunities for institutional investors. Because of the funding gap and the changing role of banks, (institutional) investors and investment funds such as DMFCO will increasingly invest in mortgages, stepping in to fill the gap that banks leave behind.
"The Dutch residential mortgage market has a solid
reputation and has been steadily growing."
Jeroen van Hessen, Managing Partner