Capital-protected funds in Belgium registered new subscriptions of €1bn in 2016, down from €2.64bn the previous year, while net redemptions, at €2.4bn, were down 22% compared to €3.08bn in 2015, according to the Belgian Asset Managers Association (Beama). Assets under management (AUM) for capital-protected funds stood at €9.65bn on December 31, 2016 (7.61% of the total Belgian fund market), with €8.43bn of outstanding assets linked to equities and €1.22bn linked to interest rates, loans and currencies, the trade association said in its annual report for 2016.

Driven by net subscriptions, net assets of Belgian and foreign undertakings for collective investment (UCIs) publicly distributed in the Belgian market increased by €4.57bn in 2016 amounting to €177.22bn on December 31, while, according to Beama, total assets in asset management were €301.15bn, split between institutional investors such as banks, pension funds and insurers (€107.57bn); private banking clients & retail investors (€134.91bn); and others (€58.69bn).

'Investor confidence in UCIs seems to have been restored since 2014, with net inflows of €11.19bn in 2014 and €17.35bn in 2015. Even over a 20-year period (with an annual net inflow of 4.15 billion EUR), the last three years can be seen as outstanding years with regard to net new cash in UCIs,' Beama stated.

With a view on the post Brexit environment, Beama has pleaded for more open communication towards foreign asset managers that are looking for a stronghold in an EU-country, and, to make progress on this point, the association has collaborated with the Financial Services and Markets Authority (FSMA) in a project flagged 'Tailored regime(s) for investment firms', to develop a new presentation with clear explanation on the licence application for the Markets in Financial Instruments Directive 2 (Mifid 2) investment firms while a similar exercise is envisaged for the Ucits and AIF management companies.

Beama also announced that following its general assembly on June 12, Marnix Arickx (pictured), chief executive officer, BNP Paribas Asset Management Belgium, has been elected as its new chairman. Arickx succeeds Hugo Lasat (Degroof Petercam Asset Management), who had been the chairman of the association for the past three years. Lasat will continue to serve as a board member at Beama. The board of directors also appointed two vice-presidents, namely, Katrin Eyckmans, who represents Capfi Delen Asset Management and Myriam Vanneste, respresenting Candriam.

SRP data shows that sales volumes for new subscriptions of structured funds were more than offset by net redemptions in 2016. There were 50 structured funds, all from KBC and worth €1.5bn, added to the SRP Belgium database in 2016. Of these, 41 products protected 90% of the capital invested; five products offered 100% capital protection; and the remaining four products, which were aimed at private investors, put full capital at risk. KBC's Perspective Solid Companies 90 Timing USD 5 was the best-selling structured fund of the year with sales of €76.9m.

One-hundred and seventy-two structured funds, from five different providers, which collected combined sales of €5.7bn at inception, reached their maturity in 2016. KBC, with €3.2bn from 86 products was responsible for more than 50% of the maturities by sales volume, followed by BNP Paribas Fortis with just under €2bn from 54 maturing products. BPost Bank, Crelan and Candriam (formerly known as Dexia Asset Management) returned €255m, €247m and €28m, respectively, to the market.

Of the maturing products, KBC's Exposure Booster US 1, which first struck in June 2009, provided the highest return. The fund, which participated 200% in the positive performance of the S&P 500, returned 190% (19.7%) per annum, after 3.5-years.

Click the link to view the Beama annual review 2016-2017 (Dutch/French).

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