Plug-and-play options
We operate through a collective investment platform with segregated accounts. This means that investors share the set-up costs, while maintaining ownership of their individual mortgage portfolios. Our platform provides access to both NHG-guaranteed and non-NHG mortgage exposure. Within the platform, we have defined 12 plug-and-play investment options to choose from. These options are customised to accommodate various investor preferences regarding investment size, duration, risk profile, and redemption types.
Each of the 12 investment options is sizable enough to accommodate significant allocations and is designed to seamlessly align with the structure and requirements of the market.
Advantages and disadvantages of our collective investment platform
ADVANTAGES:
- Lower threshold: lower minimum investment required from an individual investor, as the set-up costs are shared with other investors. Also, the investment can be more widely spread over time.
- Plug-and-play: an investor can quickly join one of the existing DMPM collective mandate investment platform. The documentation and accession is relatively straightforward.
- Ability to specify the type of mortgage exposure: within our collective investment platform, we offer 12 different plug-and-play investment options to choose from, varying in NHG/non-NHG, max LTV and fixed rate period.
- Increased liquidity: as there are multiple investors active in the platform who can take over the existing portfolio and/or future funding needs, it is easier for investors to wind down the portfolio.
- Continuity and risk diversification: by combining the complementary investment mandates of several investors, DMPM ensures risk diversification and sufficient funding to be competitive and create a market presence for advisors and consumers for a long period of time.
DISADVANTAGES:
- Co-dependence: although structurally mitigated to a very high degree, within collective mandates there is a dependency on the other active investors in the collective mandate.
- Low customisation: in a collective mandate, there is little room for customisation of product terms, distribution strategy, processing, underwriting criteria, etc. The overall performance of a mortgage label in the market (in terms of production volume) depends not only on the investment preferences of an individual investor, but also on those of the other (active) investors.
- Less flexibility: the fact that the investment structure already exists, means that there is much less flexibility to accommodate the specific requirements of an individual investor in terms of legal set-up and individual requirements.
‘’DMPM's collective platform allows us to invest opportunistically. This flexibility is very important for us, it helps us to take advantage of periods when spreads are favourable.’’
Investments over €5 billion
For investors with very large investment mandates to grant, a dedicated mandate or tailor made investment platform becomes efficient. This is an investment platform set up specifically for a single investor, often in combination with a dedicated mortgage label or sub-label.
Read more about the advantages and disadvantages of a tailor made investment platform.
