Net assets for capital-protected structured funds in Belgium registered a decline of €660m, or 8.6%, in the fourth quarter of 2017, according to figures released by the Belgian Asset Managers Association (Beama). The decrease was attributed to net redemptions and negative investment returns of the underlying assets, according to the trade association.
The Belgian fund sector as a whole finished 2017 with an AUM of €194.4 billion, a 'historical record', according to Marnix Arickx (pictured) chairman of Beama. 'During 2017, the previous 'all-time high' of €179.1 billion worth of net assets, which dated from end-2006, was broken,' said Arickx.
Assets under management (AUM) for capital-protected funds stood at €7n on December 31, 2017 (3.6% of the total Belgian fund market), with €6.5bn of outstanding assets linked to equities and €500m linked to interest rates, loans and currencies, according to Beama.
Funds that predominately invest in non-fixed income securities (with the exception of CPPI and capital-protected funds) registered an increase in the fourth quarter, with assets of equity funds increasing by €3.8bn (7%) entirely due to net subscriptions. At the end of last year, equity funds had registered assets of €58.1bn.
KBC was the sole provider of capital-protected structured funds in Belgium over the year, according to SRP data. The bank insurer distributed 33 funds over the course of the year, of which 10 were launched in the fourth quarter. The best-selling fund of 2017 came in the shape of Perspective World Selection 100 Absolute Performance USD 1, a seven-year structure linked to a basket of 30 global shares, which collected €49m in subscription.
Overall sales of structured funds for the year, at €711m, were down by more than 50% compared to €1.5bn (from 50 products) in 2016. Five years ago, in 2013, 67 products sold a combined €2.9bn.
One hundred and forty-two structured funds from five different distributors (BNPP Fortis, Bpost Bank, Crelan, Dexia and KBC) matured during 2017. The products, which sold €5.6bn at inception, returned on average 4.16% pa. The 70 funds from KBC, with an average annualised return of 5.53%, were the best performing funds in the year. Crelan, which was previously known as Centea, saw its 25 products return 4.36% on average, while BNP Paribas Fortis registered an average annualised return of 2.24% from 37 products.
KBC Exposure Conditional Plus US 2, which matured on July 31, 2017, was the best-performing fund in 2017. The product, which was denominated in US dollars and linked to the S&P 500 index, returned 191.7 after six years (11.15% pa).
During 2017, the Belgian fund sector experienced a strong first quarter. A temporary decline followed, however, this was completely eliminated during the third quarter, while the final quarter was characterised by additional growth. By the end of the year, net assets of publicly distributed funds in Belgium were 9.7% higher than a year earlier, mainly due to the impact of net subscriptions, according to Beama.
The Belgian fund market can be defined as the net assets of publicly distributed funds according to Belgian and foreign law. Beama reports on all share classes of public funds which may be commercialised in Belgium.
Click the link to view the Beama figures for the fourth quarter of 2017 (Dutch/French).
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