Just two new tranche products, Eurostoxx 50 10% Klik & Klaar Note juli 2015-2020 and Aegon 8% Memory Coupon Note June 2015 - 2018, both from BNP Paribas, were added to SRPs Dutch database in July. The French bank, together with Kempen, is the only provider that regularly introduces new products in the Netherlands. In the past, ABN Amro used to launch capital-protected structures, such as the Wereld Garantie Note series, at regular intervals, while Rabobank each month issued its own equivalent, Rabo Wereld Garant. However, both banks have since closed their structured products desks, while Van Lanschot, which launched 395 structured deposits in the Netherlands between July 2006 and June 2011, has turned its attention to Ireland where it started a collaboration with Wealth Options in 2013.
“What I see at Van Lanschot, but also at other banks, is that structured products are still being used, but more in the private placement environment, as tailormade products,” said Laurent Guntenaar, director structured investments at Kempen, the manufacturer behind the Van Lanschot structured products. “However, the departments at the banks which each month issue a series of products are no longer there.”
Meanwhile, Michiel Denkers, head of supervision and risk analysis at the Authority for the Financial Markets (AFM) left the Dutch regulator in July after 13 years of service. Denkers joined the Authority for Consumers & Markets (ACM) as director of the competition department on July 15.
In Belgium, the number of products protecting 90% of capital continued to increase. Fourteen out of a total of 22 products which were added during July protected 90% of capital with the remaining eight products providing full protection.
In 2015 to date, for the first time since the launch of SRP’s Belgian database in 2005, issuance of 90% principal protected products was on a par with that of 100% protected structures, while sales of partly protected products have overtaken those of fully protected products: 96 structured products worth €2.3bn protected 90% of capital compared with 98 fully protected products with a sales volume of €1.6bn.
As a result, Argenta has temporarily halted the distribution of its capital-protected notes range. “We have indeed not launched any new products,” said Jos Stappers, team manager, savings and investments, product management at Argenta. “We wish, for now, to maintain 100% capital protection, which is not easy in the current interest rate environment.” Argenta always evaluates on a three-month basis but “for the time being, we are having a rest period,” said Stappers.
Finvex launched the Finvex Sector Efficient Europe 30, which capitalises on the fact that in addition to low-risk there are also a number of multi-factor approaches which allow to generate additional alpha through intelligent sector selection, according to Benedict Peeters, chief executive and partner of Finvex.
The new index was debuted in Belgium by Crelan’s SG Issuer (LU) Finvex Sector 90, a 90% capital-protected, 7.5-year medium term note and Delta Lloyd Bank’s CODEIS Securities S.A. (LU) Europe Best Sector. It is not the first time Delta Lloyd Bank has used a Finvex index as an underlying for its structured products over the past year and a half, according to Laurent Joly, product manager, savings and investments, at the bank. “First and foremost, [Finvex indices] are popular within our network because they have a good track record,” said Joly. “They tell a good story, either going for sustainable companies or for certain sectors, and, due to the low volatility of the index, we are able to offer a good participation.”
After the summer, Finvex will start a pilot campaign in collaboration with some partners said Peeters. “We are going to try and roll out the index on a global basis,” he said.
The Belgian federal government announced a new set of tax measures in July, including the so-called “tax shift”. As part of the tax shift, a “speculation tax” will be introduced, from 2016, on capital gains realised by private individuals on equities sold within six months of their acquisition.
Although the drafts of the legal acts implementing these new measures are not yet available, market participants were cautious in their views on how the new tax would affect structured products. “We have no idea of the exact scope of the new speculation tax,” said Jurgen Vanhaverbeke, head of product management, save & invest, at BNP Paribas Fortis. “It is not clear whether structured products will be part of the scope.”
With structured products in Belgium typically having a medium to long term, Vanhaverbeke does not think the speculation tax would have a particularly strong impact. “The majority of structured products we sell are products with capital protection and typically these products are kept for the long term and not as speculative products,” he said.
Click here to view the full July Belgian review and here for the full Dutch review.
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Van Lanschot: Irish products are manufactured for B2B market
Belgian speculation tax: too early to assess possible impact
Delta Lloyd: Finvex index tells good story, expected impact of speculation tax negligible
Finvex debuts sector index in BelgiumBelgium’s Argenta puts capital-protected notes on hold