Crelan has deployed the new Climate & Energy Transition Index in Belgium only weeks after its launch on June 8. The index - a collaboration between Solactive and the SRI (socially responsible investment) teams from Natixis - tracks 40 global companies that perform well on environmental, social and governance (ESG) criteria while providing high dividend and low volatility features. Crelan has made the index accessible to retail investors via a capital protected autocallable - issued by Natixis - which comes in two different options: a Norwegian kroner denominated version with a term of five years and a euro denominated version with a maturity of 10-years.

The person behind the customer, and not just the Crelan customer, is becoming more and more aware of the environment and the climate, according to Koen Theys (pictured), product manager, product management off-balance sheet at Crelan. "It is a theme that is increasingly being discussed and rightfully deserves all the attention it gets," said Theys.

Major investments for either improvements, new innovations, new production lines, or other products, are necessary and will also be implemented effectively in the near future, according to Theys. "By specifically responding to this theme, we, at Crelan, hope that we can give the customer the opportunity to not only achieve a return on his investment but also a better living environment," said Theys.

It is the first time that Crelan is simultaneously distributing two 100% protected products linked to the same underlying index in Belgium. "[The product has the] same issuer, the same underlying, the same formula but with a different currency and maturity," said Theys noting that the product in NOK is purely offered to diversify investors' portfolios. "It's not that we have maturities in NOK coming up and launch a product to offer customers the opportunity to reinvest," said Theys. "We also believe there is still potential in the Norwegian economy and consequently the Norwegian kroner."

Each of the eight structured products Crelan has distributed in Belgium year to date is linked to a single index. However, none of the products are linked to a benchmark, with the bank opting to use proprietary or 'house-indices' instead. "When we compare products we see that the product conditions for house indices are more attractive than those of the benchmarks," said Theys. "At this moment in time, with the low interest rates, product proposals for benchmark indices are a little bit out of tune."

Of the 83 index-linked products launched in Belgium this year, only around 30 use a benchmark as underlying (predominately the Eurostoxx 50) with the remaining products linked to proprietary indices which include nine indices provided by Solactive, according to SRP data.

Solactive's Digital Economy and Human Capital World MV indices, which are licensed to Belfius and BNP Paribas, respectively, were each used as the underlying index in six products. Belfius collected combined sales of €147m from the products linked to the Digital Economy Index which were distributed via its own channel while products linked to the Human Capital World MV index, which were sold via BNP Paribas Fortis and Crelan, generated sales of €37m. Crelan also distributed two products linked to the European Inflation-Linked Companies EUR Index (€27.5m) which was developed by Solactive in partnership with Societe Generale.

Click the link to view the index guideline.

Related stories:
Deutsche Bank partners with Natixis for first Polish zloty note in Belgium

Belgian regulator bans 20 structured products in 2017

Belgian structured product sales harmed by new EU regulations

Nagelmackers partners with Credit Suisse to debut Flossbach fund