Irish asset manager reports record inflows of €330m in first half 2018

BCP Asset Management has announced that inflows into BCP investment products were €330m in the first half of 2018, representing a record for any six-month period in the company's history.

The €330mn was predominantly invested into BCP structured products, according to Brian Carey (pictured), head of business development & member of the BCP investment committee. "A mix of deposit and note based products," said Carey.

The independently owned asset manager, which provides structured products for the advisor market in Ireland, has been offering investment solutions since 1969 and today manages over €2.5 billion in assets for its investors which include private individuals, pension funds, corporate, credit union and charity investors. As a product producer BCP - which has manufactured capital secure bonds since 1992 - distributes its investment products through independent brokers, financial advisers, accountancy firms and insurance companies.

The company's maturing products during the first semester in 2018 - 29 in total according to SRP data - included the Split Deposit Growth Bond 4 (option 1) which was issued in collaboration with Bank of Ireland matured on June 28 with a gain of 40.3% gross (compound annual return 6.6%) over the 5.25-year term. The bond paid 6% deposit interest on 33% of capital invested after 12 months while the remaining 67% was linked to the performance of a basket of 30 global stocks.

Other products providing a positive return were the MSCI Global Equity Index Bond, a 4.5-year product linked to the MSCI World Minimum Volatility Index, with a gain of 55.5% (CAR 10.3%) while the BCP Equity Index Kick Out Bond, which was linked to the Euro iStoxx Equal Weight Constant 50, knocked out at the first time of asking on April 12, paying an 8% return after 12 months, in a flat period for European equities.

The SRP Ireland database registers 434 structured products distributed via BCP, dating back to February 2003. One-hundred fifty-five of the asset manager's products are linked to funds of which Carmignac Patrimoine, seen in 35 products, is the most frequently used, followed by Old Mutual Global Equity Absolute Return Fund (22 products), Ethna-Aktiv (19) and M&G Optimal Income Fund (18).

"Fund linked products are popular in Ireland because investors like the geared returns available from structured products," said Carey. "Our most popular structured products are 90% protected with 200% participation in the underlying funds or basket of funds, which is a very attractive risk/reward trade off."

One hundred and sixteen products are linked to a basket of up to 30 shares while 101 products are tied to a single index including 20 products linked to the Finvex Sustainable & Efficient Europe 30 and 17 products linked to the Eurostoxx 50. There were also products linked to interest rate (eight), inflation and real estate (two each).

The vast majority of BCP's products were issued via Bank of Ireland (294 products) but the firm has also collaborated with Investec (104 products), BNP Paribas (14), Societe Generale (13), Banco Santander, BBVA, Deutsche Bank, Standard Chartered (two each) and Danske Bank (one).

'The continued growth in our investment volumes reflects the [...] quality of our offerings, the strong performance of previous investments, and our continued focus on delivering the highest levels of customer service in the market,' said John Calvert, CEO of BCP in a statement.

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