The Crystal Funds of 2023

Winners in a difficult climate

The Crystal Funds in La Libre and Le Standaard reward the funds with the best one-year performance between July 2022 and the end of June 2023. A new award was added for this year's edition, on top of the traditional ten Crystal Funds: the Crystal Fund for most innovative fund.

This award comes at a time when managers are not having it under the market. After the Covid-19 crisis, the war in Ukraine, inflation and rising interest rates are all challenges for asset managers. With these challenges, both bond and equity managers must take note. Rising interest rates have changed things considerably after a long period of low or even negative interest rates. Equity markets have also been very volatile. Investors should not have a weak stomach. In addition to pure performance, they must also consider the risks they take. Managers must constantly adapt. Some funds achieved their good performance thanks to the right hedging techniques. But in the world of European equities, it is an index fund that has shown that active management is not always a winner. The award for the most innovative fund showed that the sector is also capable of reinventing itself and offering investment alternatives responsive to changes in society. The range of innovations was quite broad. The nominees and the winner also considered sustainability by at least complying with the SFDR Article 8 rules.

So investors have a wide choice of investments. Sometimes in this universe it is not easy to see the forest for the trees. This palmares offers a certain openness without giving investment advice. These winners are published for informational purposes only.

A short-term methodology

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The Crystal Funds of La Libre and De Standaard are awarded in the fall based on their annual performance through June 30. La Libre and De Standaard make awards based on annual returns between July 1, 2022 and June 30, 2023.

The editors of La Libre and Le Standaard have chosen a simple methodology. Funds are classified within each category based on "pure" performance, without taking into account the fund's volatility and risk. This performance is calculated based on the one-year performance from July 1, 2022 to June 30, 2023, with a weighting factor of 75%. In addition to this performance, the three-year performance swing is weighted at 25%. Only funds offered to the general public (retail) in Belgium without a minimum entry fee can be included in these rankings. For each nominated and awarded fund, this has been confirmed by the issuers and by Symex, which provides the data. This is their responsibility and the editors of the two publications are not liable for it.

The awards ceremony highlights the best funds in ten categories based on their performance. The ten fund categories are as follows: funds invested in Belgian equities, funds invested in global equities, European equities, US equities, small & mid caps, funds invested in corporate bonds and funds invested in government bonds. Then there are the three awards for defensive, neutral and dynamic mixed patrimonial mutual funds. The rankings are compiled by Symex under its own responsibility. They are provided for informational purposes only.

An award for most innovative fund was also given in 2023 by La Libre and the blog MoneyStore.be. The return of the fund is not the basic criterion for this award. The award was given by a jury with very diverse expertise. The selection criteria for this award were divided into several aspects, which related not only ор the innovative nature of the fund, but especially its contribution in social or environmental terms.

The presentation of the Crystal Funds Awards can also be an opportunity to point out that performance should not be the only criterion taken into account when choosing a fund. Past performance does not guarantee future results. We cannot stress this enough! This ranking is therefore published for informational purposes only.

Under no circumstances should these awards and nominations be considered investment advice. It is important to remember that asset management is a long-term endeavor. Investors should not lose sight of their investment horizons and goals. Before investing, it is always advisable to learn more and read the KID, a document specific to each fund that provides investors with information about the fund's risk level, fees, investment universe and performance. These documents complement the award presentation.

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Isabelle de Laminne

The winners speaking: Patrick Millecam (Partner - Senior Portfolio Manager at Value Square)

You are winning for the third year in a row in the Belgian equities category, what is the recipe of your success?

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Value Square is a winner in the "Best Funds in Belgian Equities" category with the Value Square Fund Equity Belgium C (BE6285413074) fund and for the 3rd consecutive year. Here's the question for "The Winners' Word. You win for the third year in a row in the Belgian equity category, what is the recipe of your success?

Value Square Fund Equity Belgium has performed strongly over the past three years. Value Square focuses on companies that have good long-term growth prospects. To do this, it looks at both historical value creation and future growth opportunities. Another important condition is that all stocks must also have strong 'Value' characteristics. In other words, they should preferably quote cheaper than the market average. Moreover, we prefer companies with strong balance sheets and thus little debt. Strong solvency has contributed positively to returns.

Compared to three years ago, the interest rate situation has changed dramatically. Indeed, in the second half of 2020, interest rates on Belgian 10-year government bonds were negative. Today, interest rates are a good bit above 3%. This is a world of difference when companies need to refinance their debt coming due.

Of all Belgian equity funds, we have the lowest percentage of Bel 20 shares. The managers at Value Square also invest in their own funds and therefore also manage their own capital as a result. The stocks that contributed best to returns over the past year (30/6/2022-30/6/2023) were X-Fab, KBC, Solvay, ING, Deme and Barco. We had relatively few real estate stocks in the portfolio; which took big hits due to rising interest rates.

So at Value Square, the focus on Value Investing is paying off.

Disclaimer

This article was written at the initiative of De Standaard and was not sponsored by Value Square; it was reproduced in full.

• EN: The Standard
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• Copyright photos: Jean-Luc Flémal