On Wednesday 21 February 2018, newspapers De Tijd and L'Echo awarded the best performing funds on the Belgian market for the 22nd time. Below you will find the top 3 for each category. The complete list was published in De Tijd on 22 February 2018.
Fund is the popular name for UCI (Undertaking for Collective Investment). A UCI is an undertaking that brings together several investors and invests their deposited money in various investment products, such as stocks, bonds, cash, etc., in order to spread the risk.
Before you proceed with investing, you must read and evaluate the KIID and prospectus. The KIID sets out the objectives, investment policy, risks and benefits, and costs and past performance of the fund.
The 14 individual Awards are given to 14 categories of investment funds. Funds which are taken into account must have existed for at least five years and be registered in Belgium. Funds under Class 23 are not taken into consideration. The funds are compared to the other funds in their category and are evaluated on the basis of four criteria: the main one is the performance consistency over the last five years, which constitutes 40% of the total score. This means that one good year is not enough to win the Award, and a bad year can destroy the chances of winning an Award. It also means that the funds must have good scores every year.
The other three criteria, each accounting for 20% of the total score, are the five-year return, the five-year risk-adjusted return, and the results obtained during market downturns.
Each fund obtains an overall score based on these four criteria, and the one with the highest score in its category wins the Award.
The final scores form also the basis for the Crowns (Couronnes) attributed by L'Echo, which are available on www.lecho.be/fonds . Funds that rank in the top 15% of their category receive three Crowns. The bottom 15% gets no Crown.
Those in between receive one or two Crowns.
The winners are not necessarily the funds that have achieved the best returns, but those who have shown consistency, without taking excessive risk.