Dutch Pensioen en Verzekeringskamer (PVK), supervisor for the insurance and pensionbranche, should demand lower buffers for real estate investors than for other investment categories. based on the expected maximum devaluation of investments, PVK demand a buffer of 40%. According to real estate investors, united in the IVBN, the devaluation in real estate is low enough to allow a buffer of ´several percentage points´.
The collapse of the stockmarkets has put pressure on pensionfunds´ coverage-rates. Supervisor PVK has responded to this by demanding that pensionfunds with a low coverage should create an emergency plan to raise the coverage on short notice. PVK aims to restore the financial position of pensionfunds in the long term. The creation of buffers to cover for devaluation oin the future is part of this plan.
Already in january, IVBN had reported that real estate should be considered a special category of investments. Now, PVK only discerns between commercial investments, such as stocks and real estate and investments in fixed interests. IVBN has pointed out that real estate is a far less volatile and risk bearing investment category than stocks. Also, IVBN noted that real estate in an investment funds diversifies risk beacsue real estate ´has a much weaker correcllation with shares than fixed interests and cash´.