Belgian fund managers are finally able to launch structured products wrapped in onshore fund wrappers, under updated European fund rules implemented last week. Belgium was one of the last countries in Europe to implement the Undertaking for Collective Investment in Transferable Securities III legislation and has done so more than a year after the deadline (DW, 10/8). UCITS III allows funds to use derivatives for active investment rather than just for efficient portfolio management and has led to the launch of some innovative onshore structures in other countries, such as hedge fund-linked products (DW, 6/20).
Fortis Investments, with EUR83 billion under management, and KBC Asset Management, with EUR101 billion under management, are both looking to launch UCITS III funds. Wim Allegaert, head of structured products at KBC, said, "[UCITS III] will come in handy for all of our structures," explaining the fund wrapper will be another way of distributing its structured products in Belgium. Koen Vanderheyden, partner at Belgian law firm Lawfort, said Belgium's regulator, the Banking, Finance and Insurance Commission, "Will be overloaded with requests for regulation of funds." He noted the BFIC's priority will be to convert old UCITS I funds to UCITS III, so there may still be some delay for managers looking to launch new funds.
