BELGIUM - KBC Asset Management is to launch an LDI product "around February" that will target Belgian and Dutch pension funds.
Patrick Grauwels, head of institutional asset management at KBC Asset Management, said it would be a bond product offered in the form of a SICAV with different buckets on the maturity to help funds better match their liabilities.
"The buckets will likely have five year variations, for example 0-5 or 5-10 years," he said. "The one problem is that in each bucket we need critical mass, which is why we are not just offering this to Belgium but the Dutch market as well, which is much larger and we expect the highest interest there."
The fund is currently undergoing approval with the Luxembourg authorities, he added. "It will be a Luxembourg SICAV because of several regulatory reasons be, and also it can be more easily promoted to Dutch customers."
Edwin de Boek, MD at KBC Asset Management, added it would be a UCITS 3 product, and claimed there was nothing like it yet in the Belgian market. "We expect gradual growth [from this product] rather than it boosting business from day one," said de Boek.
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