Bank Nagelmackers has launched its first structured product in Belgium since changing its name from Delta Lloyd Bank in October. The SG Issuer (LU) Europe Quality Note, a 10-year fully capital protected European medium-term note, offers 100% participation in the positive performance of the iStoxx Europe Quality UH Index.

Nagelmackers aims to continue on the same footing as it did at Delta Lloyd Bank, said Laurent Joly, product manager, savings and investments at the bank. “We certainly hope to launch structured products on a regular basis,” said Joly. One factor which has changed is the issuing party. Whereas the last 11 structured products launched by Delta Lloyd Bank were all issued by Codeis Securities, Societe Generale’s Luxembourg-domiciled special purpose vehicle, Nagelmackers has opted for SG Issuer for its first offering. “Codeis was more of an internal party with which we collaborated,” said Joly. “In this case, we decided to work with SG Issuer, but, in fact, the choice really depends on market conditions.”

The note is only available to clients with a premium or ‘Nagelmackers’ account. At Nagelmackers, clients are segmented according to their wealth or monthly savings, with customers split between standard, premium or Nagelmackers client, according to Joly. “You are a premium client if you have funds of €75,000 or a monthly savings capacity of €1,300, including mortgage repayments,” he said. “From then on, the client is able to subscribe to this product.”

The iStoxx Europe Quality UH Index, which comprises between 25 and 75 European stocks selected on various criteria (operational margin, indebtedness, profitability of assets and an expected dividend of more than 4%) is reviewed every three months. To reduce the risk of volatility, stocks from the financial sector are excluded.

“The index has performed really well since the start of the year,” said Joly. In March, Delta Lloyd Bank issued a product linked to the same index, which sold really well, according to Joly. “Recently we, once again, looked at the index and saw that, year to date, the performance is more than plus 10,” he said. “We thought it would be interesting to use this index again, especially because from a macroeconomic perspective, within the bank, we want to focus on Europe,” said Joly. “For us, this is the most interesting region to invest in. That’s why we were looking for a European equity index.”

SRP’s Belgian database lists 47 structured products from Delta Lloyd Bank dating back to May 2005. The notes, which have a combined sales volume of €1.4bn, were issued in collaboration with Codeis Securities, NIB Capital and SG.

In 2015, six structured products linked to the iStoxx Europe Quality UH Index have been distributed in Belgium. They include offerings from AXA Belgium, Crelan, Delta Lloyd Bank and VDK Spaarbank.

Related stories:

VDK Spaarbank teams up with SG for Finvex sector autocall

Investors can benefit from demographic evolutions, AG Insurance

Opportunity NOKs in Belgium from Deutsche Bank

Credit Agricole green note sustainable in more ways than one, says Crelan