Wilgenhaege has launched the Eco-Plus 95% Garantie Note 2023 in the Netherlands. The product protects 95% of the nominal invested and participates 125% in the positive performance of the Solactive Sustainable Development Goals World RC 8 Euro Index (SDG index), subject to 12 months backend averaging.

The SDG index, which was first launched in October 2016 and is licensed to BNP Paribas, makes its debut on SRP's Dutch database. The index consists of 50 equally-weighted companies selected on their environmental, social and governance (ESG) score. The ESG screenings are combined with a low volatility filter, while applying country and sector caps, and index rules requires the inclusion of stocks from Europe, Asia and America.

"We have looked at trends in the market and we noticed that sustainability is becoming an ever-increasing theme in the investment world," said Jerry Langelaar (pictured), chief executive officer at Wilgenhaege. "So, we deliberately searched for a product linked to the ESG theme. Eventually, in consultation with BNP Paribas, we decided to opt for the Solactive index and, based on this index, we were able to propose what we think is an interesting product."

Wilgenhaege's most recent products have been predominately autocallables that put full capital at risk and this time the fund manager has deliberately chosen a product with a high capital protection, according to Langelaar. "Since 2016, we have launched a number of products - both on shares of Dutch companies, as well as the Eurostoxx 50 - which were aimed at the more aggressive investor," said Langelaar. "The Eco-Plus note has a more defensive character. This could be interesting for a client in terms of diversification and spreading of risk."

Wilgenhaege expects to reach a wider audience with this product, according to Langelaar. "These products are not included in our asset management portfolios, instead they can be bought separately by our clients."

The note is from BNP Paribas, which has been the issuer for each of the seven structured investment products the fund manager has launched since April 2016. "In the past, our products were also issued by ING and Barclays Bank," said Langelaar. "BNP Paribas, for us, is an interesting and pleasant bank to work with too. They offer a wide range of products and the knowledge on their side is also good."

Wilgenhaege is not restricted to one party and does not have an exclusive partnership with the French bank. "We are always open to issue products via other parties. Although, I must say that, since the crisis, the competitive landscape and the offering of the various parties (in the Netherlands) has changed."

The Solactive Sustainable Development Goals World Index has been used as the underlying index in 21 structured products, according to SRP data. Of these, 12 were targeted at investors in Sweden, including eight distributed by Erik Penser and four by Handelsbanken. Six, all from BNP Paribas Fortis, were available to investors in Belgium, while the remaining products were distributed in France and Italy (two each).

Click the link to view the index guideline and the latest factsheet.

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