The Investment 

Invest in Swedish Prime Residential Mortgages through our Alternative Investment Funds

Hypoteket Funds have established a series of Mortgage Funds. The first fund, launched in the beginning of 2018, was rather small. It was fully subscribed quickly and closed about a year later. Our second Mortgage Fund launched in the beginning of 2019 and is still open for commitments. We also have a third fund open with an investment grade rating from Moody's. The funds are Alternative Investment Funds (AIFs) and regulated under the AIF act, under the supervision of Finansinspektionen (the Swedish FSA).

Hypoteket Mortgage Fund 2 (BLF II)

Hypoteket Mortgage Fund 2 is open for commitments from institutional investors. The fund targets low LTV mortgages (<65%) which makes it favorable for SII and IORP II investors.

Hypoteket Mortgage Fund 3  (HM3)

Hypoteket Mortgage Fund 3 was launched in late 2021 and is open for new investors. It is listed (Lux) and rated (Baa2, Moody's). The fund can invest in mortgages with somewhat higher LTVs (max <75%, average <60%).

               Do not hesitate to reach out for more information about investment opportunities in the above mortgage funds

Historical Return

The yield of the fund is pegged to the market rates of the largest Swedish mortgage providers (read more under "OMR"). Hence, overall returns will reflect the current Swedish mortgage rate landscape. The running yield bottomed at the end of 2021 and has climbed gradually since (and is expected to continue to do so with short end mortgages rates widely expected to move higher).

Historical returns are no guarantee for similar returns in the future. Returns will depend on, among other things, movements in market rates and potential defaults during the investment period. The above chart reflect the yield in Bolånefond 2.

The fund's strict investment policy only allows investing in prime residential mortgages originated through Hypoteket Mortgages highly digital origination process 


Maximum loan-to-value of the mortgages in the funds


Maximum debt-to-income ratio of the borrowers, including all the borrower's debt regardless of creditor


We test our borrowers ability to endure in a high rate landscape

*Comprising interest rates of 6% and amortization of 1%

Full look-through reporting

Reporting to investors is transparent and can be made on a loan-by-loan basis. This way, the investment is subject to better capital coverage ratios under the Solvency II regulatory framework as well as under the Swedish implementation of the IORP II directive.

Reporting routines is setup up with each investor and is highly adjustable to meet individual needs.