The 2023 Crystal Funds

Winners in a tough climate

The Crystal Funds in La Libre and Le Standaard reward the funds with the best performance in one year between July 2022 and the end of June 2023. This year's edition added a new award, on top of the traditional ten Crystal Funds: the Crystal Fund for Most Innovative Fund.

These awards are presented at a time when administrators are out of business. After the Covid-19 crisis, the war in Ukraine, inflation and rising interest rates are all challenges for asset managers. Both bond and stock managers must take these challenges into account. Rising interest rates have significantly changed the situation after a long period of low or even negative interest rates. The stock markets were also highly volatile. Investors should not have a weak stomach. In addition to pure performance, they must also take into account the risks they take. Administrators must constantly adapt. Some funds have achieved their good performance thanks to the right hedging techniques. But in the world of European stocks, it's an index fund that has shown that active management isn't always a winner. The award for the most innovative fund showed that the sector is also able to reinvent itself and offer investment alternatives to respond to changes in society. The range of innovations was quite broad. The nominees and the winner also took sustainability into account by complying with at least the SFDR rules in article 8.

Investors therefore have a wide choice of investments. Sometimes, in this universe, it is not easy to still see the trees through the forest. This record offers a certain openness without providing investment advice. These winners are published for informational purposes only.

A short-term methodology

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The La Libre and De Standaard Crystal Funds will be awarded in the autumn based on their annual performance until June 30. La Libre and De Standaard present awards based on an annual return between July 1, 2022 and June 30, 2023.

The editors of La Libre and Le Standaard have opted for a simple methodology. Within each category, the funds are classified on the basis of “pure” performance, without taking into account the fund's volatility and risk. This performance is calculated on the basis of the one-year performance from July 1, 2022 to June 30, 2023, with a weighting factor of 75%. In addition to this performance, the performance fluctuation over three years is weighted at 25%. Only funds that are 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 responsible for this.

The awards ceremony spotlights the best funds in ten categories based on their performance. The ten fund categories are as follows: funds invested in Belgian stocks, funds invested in global stocks, European stocks, US stocks, 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 investment funds. The rankings were drawn up by Symex under its own responsibility. They are given for informational purposes only.

In 2023, an award for the most innovative fund was also presented by La Libre and the MoneyStore.be blog. The fund's return is not the basic criterion for this award. The award was presented by a jury with a wide range of expertise. The selection criteria for this award were divided into various aspects, not only related to the innovative nature of the fund, but also, in particular, to its social or environmental contribution.

The presentation of the Crystal Funds Awards can also be an opportunity to point out that performance should not be the only criterion that is taken into account when selecting a fund. Past performance is no guarantee for the future. We can't emphasize this enough! This ranking is therefore published for informational purposes only.

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

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Isabelle de Laminne

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

You're winning in the Belgian stocks category for the third year in a row, what's the recipe for your success?

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Value Square is the winner in the “Best Funds in Belgian Stocks” category with the Value Square Fund Equity Belgium C (BE6285413074) and for the 3rd consecutive year. Here's the question for “The Word of the Winners”: You're winning in the Belgian stocks category for the third year in a row, what's the recipe for your success?

Over the past three years, Value Square Fund Equity Belgium has performed strongly. Value Square focuses on companies that have good long-term growth prospects. To do this, people look at both historical value creation, but also at future growth opportunities. Another important condition is that all stocks must also have strong “Value” characteristics. In other words, they should prefer to quote cheaper than the market average. In addition, we prefer companies with a strong balance sheet and therefore low levels of debt. A strong solvency has contributed positively to the return.

Compared to three years ago, the interest rate situation has changed drastically. Indeed, in the second half of 2020, the interest rate on Belgian 10-year government bonds was negative. Today, the interest rate is well above 3%. This is a world of difference when companies have to refinance their debts that are due.

Of all Belgian equity funds, we have the lowest percentage of Bel 20 stocks. The managers at Value Square also invest in their own funds and thus also manage their own capital. The stocks that contributed best to the return last year (30/6/2022/30/6/2023) are X-Fab, KBC, Solvay, ING, Deme and Barco. We had relatively few real estate stocks in our portfolio; which were severely hit by rising interest rates.

At Value Square, the focus on Value Investing is therefore paying off.

Disclaimer

This article was written at the initiative of De Standaard and was not sponsored by Value Square, it was taken over in its entirety.

• NL: The Standard
• Video and photos
• Copyright photos: Jean-Luc Flémal