Investment management

Amvest is an investment manager of residential homes for institutional investors. We offer distinctive home investment products and tailored solutions. We manage three funds and a range of separate accounts. Based on a long-term horizon and the high quality of the real estate in our portfolios, we strive for higher financial and social returns.

A glance into the future

Amvest has over 20 years’ experience in managing residential portfolios, with a focus on medium-priced rental homes and care property. It goes without saying that we keep up to date with the latest market trends. But we look beyond just that, aiming for optimum returns for our investors, tenants and the world at large. This is why we look forwards. We know how we’ll be living in the future and what makes tenants happy. We use all of our experience, knowledge and skill to invest for the longer term. We are continuously striving for quality, performance and ESG (Environmental, Social and Governance) criteria. We aim for sustainability in the wider sense.

returns & ESG

We are convinced that our investment policy and portfolio management with an integrated ESG approach will generate sustainable returns. These returns will be both financial and non-financial, with a positive impact not only for our investors, but also for our tenants and society as a whole.

Sustainable Finance Disclosure Regulation (SFDR)

Sustainability is playing an increasingly important role in business and finance. In 2018, the European Commission published the EU Action Plan for Sustainable Finance. With this plan, the European Commission wants to promote the transition to a circular economy and achieve greater transparency about sustainability. The plan consists of new laws and has implications for existing laws. The SFDR first came into effect, on 10 March 2021. This European information regulation is applicable to financial market parties including pension funds, banks and insurers but it also applies to Amvest as the manager of three supervised funds.

On the basis of the SFDR, Amvest, in its role as manager, is required to set out how it deals with sustainability in its investment decision policy and remuneration policy, and to detail the consequences of its approach. In addition, the regulation contains transparency requirements at fund level (for more details, see the Amvest Residential Core Fund, De Utrechtse Fondsen Vastgoed C.V. and the Amvest Living & Care Fund).

Integration of sustainability risks into investment decision-making

The SFDR requires the manager to indicate how it takes sustainability risks into account in its investment policy. Sustainability risk is defined as an event or circumstance in the environmental, societal or governance sphere that, if it occurred, would actually have or could potentially have an adverse effect on the value of the investment.

Amvest has implemented this requirement as follows:

  • when purchasing a new-build complex, the schedule of requirements forms the (minimum) basis that must be met. This schedule includes a minimum of technical and sustainability requirements that are often more stringent than the current building code. This ensures that new investments meet the latest requirements;
  • when acquiring an existing complex, an extensive and thorough inspection of the quality and sustainability of the complex forms part of the acquisition process. If the complex does not meet the defined objectives (e.g. the required energy label) and there is no cost-effective way to bring the building up to the desired level, then as a rule the purchase will not take place. Almost all of the existing portfolios of the funds under management have energy label A, which sets the bar high;
  • in the case of existing investments, an annual property analysis and available data are used to determine which complexes are eligible for investment (e.g. solar panels or renovation) or disinvestment (sale of complex).

Making the portfolios more sustainable is the starting point, and investment decisions will be geared to achieving this aim. The measures described (schedule of requirements, inspection, property analysis) ensure that sustainability risks, particularly in terms of the environment, are taken into account in investment decisions with the aim of preventing risks as far as possible.

Taking into account negative impacts on sustainability factors

Investments in real estate can have a negative impact on sustainability factors (environmental, societal and governance factors). For example, investments in homes that are not energy efficient can have a negative impact on the climate. Amvest therefore does all that it can to take such negative effects into account when making investment decisions. When selecting, managing and selling complexes, we check whether our decision has a negative impact on sustainability factors.

When it comes to acquiring complexes, the acquisition policy sets out a number of criteria that acquisitions are required to meet. One of these criteria is that acquisitions have to be in line with Amvest’s sustainability ambition as a manager and the objectives defined at fund level. The guiding principle is that acquisitions must increase the sustainability of the portfolios. Together with the schedule of requirements, this ensures that negative effects on sustainability factors are taken into account when making an investment decision.

An investment decision is based on an investment proposal. Amvest, in its role as manager, discusses an investment proposal extensively in a range of bodies before taking a decision. In this decision-making process, the intended acquisition is discussed at length in relation to the predetermined criteria laid down in the fund conditions and portfolio plans of the three funds. Predefined risks (including the ‘climate risk’) from the risk management framework are also checked. This comparison is explicitly recorded in the investment proposal and discussed in the various bodies. Each fund has its own framework and governance bodies.

If an existing investment may have an unfavourable effect on sustainability factors, the likelihood of this unfavourable effect occurring and the severity of the impact will be examined, among other things, based on a property analysis and the available data. Based on this analysis, Amvest, in its role as manager, can take the decision either to modernise this investment until it once again meets the criteria or to sell it.

Amvest currently views the energy use and consumption of its investments as the predominant theme in relation to sustainability factors.

Integrating sustainability into remuneration policy

On the basis of the SFDR, the remuneration policy must be consistently aligned with the sustainability objectives of the manager and the funds, and must incorporate the management of sustainability risks.

Amvest has implemented these requirements as follows:

  • for all Amvest employees, part of the variable remuneration depends on the execution of the annual portfolio plans and the achievement of predefined targets. Portfolio plans contain non-financial sustainability targets as well as financial targets;
  • benchmarking customer satisfaction and sustainability (GRESB) against formulated targets is part of the remuneration policy;
  • the remuneration policy provides for a partially deferred payment of variable remuneration for key employees, including the fund director and portfolio manager;
  • the remuneration policy provides for the possibility of reversing or reclaiming (in full or in part) the variable remuneration awarded and/or paid to key employees if and in so far as that variable remuneration was based on criteria which subsequently proved to be incorrect.

THE DEVELOPER RESIDENTIAL FUND MANAGER IN THE NETHERLANDS

Things work both ways for Amvest; as investment managers, we invest in the quality that we achieve as developers. This is quite unique in the Netherlands. Our investment in a particular site will start early, so we can control things from the off. And not just the homes themselves, but also other aspects such as accessibility, safety, facilities and the quality of public spaces. This ensures that the homes in our funds are of the highest quality, yielding excellent returns. And we continue our involvement in the properties and areas that we develop, which creates trust. Amvest Investment Management also buys property from other parties, but only of the best quality. The results? Satisfied residents and satisfied investors.

At the close of 2020, funds under management amount to around 21,000 homes valued at more than EUR 5.7 billion.

“People’s experience of living is closely linked to their surroundings. People don’t buy or rent a house, but a good place to live. This is why we also invest in aspects like safety, accessibility, facilities and the quality of the public spaces.”

Wim Wensing – Chief Investment Officer Amvest

 

Amvest funds are monitored by the Netherlands Financial Markets Authority (AFM).

Investment management, core activities

  • Managing residential investment funds and separate accounts
  • Tailored solutions for fund, portfolio and asset management
  • Setting up new funds

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