Competence Center Professional Wealth for Private Banking Dedicated Partner for Leading Professionals Deloitte Finance Forum 2018 17th May 2018
1 Our World Your wealth Degroof Petercam
1. Our World
Historical context of low interest rates (1871-2016) 20 18 16 short-term interest rate long-term interest rate 14 12 10 8 6 4 2 0 Source : Shiller 4
Historical interest rates (Belgium & Germany) since 1957 16 14 Belgium België Germany Duitsland 12 10 8 6 4 2 0-2 Source: Bank Degroof Petercam 5
350 Increase in worldwide political uncertainties 300 250 2 d Golf War Lehman Euro crisis Trump 9/11 200 150 100 50 0 Source : Bank Degroof Petercam, Policy Uncertainty 6
Increase in worldwide political uncertainties 7
Emerging uncertainties affect politics Ageing Digitalisation Globalisation 8
The impact of inflation on our assets Today 100.000 Equivalent in purchasing power 15 years later -26% 2% INFLATION 74.302-31% 2,5% INFLATION 69.046 Inflation destroys wealth 9
Value (logarithmic scale; dec. 1927=100) 3.2 Evolution of (1927-2016 in USD) Long-term bonds Equities Nominal returns annualized for the period 1927-2016 (Including inflation) Cash: 3.4% Long-term bonds: 5.7% Equities: 9.6% 10
2. Your wealth
Build and protect your wealth : different stages of life Assets 40 y. 1 2 50 y. 3 60 y. Age Professional assets Private and professional assets Private assets 1. 2. 3. Activate your savings I need to develop my wealth Optimize your balance sheet How much do I need when I retire Financial planning / estate planning income Less professional income, more time and money to enjoy life
Age of 40 Age of 50 Determine your start-up capital today Prepare your retirement Age of 60 Protect your family & wealth
A wealth strategy is necessary -> First step : an audit drawing up an inventory of your situation -> Second step : determination of your objectives and how to reach them
Collecting information on your personal and family situation and drawing up an inventory of your assets Balance sheet Assets Investments Real estate Art Group insurance Business assets Savings capacity Liabilities Loan(s) Commitments Cash flow Income Salary Pension plan Investment income Real estate income Expenditure Current consumption Household Pastimes Holidays Real estate Private equity Donations
Life stages Dynamic process : Continuous follow-up
1. Activate your savings Support for starting and building your financial wealth
At the age of 40 Thinking about my savings (example) if I invest 200.000 at 40, the capital at 60 will be 407.184 (1) if I add 1.000 /month during the same period, my capital will amount to 756.368 if I add an extra 500 /month during the same period, from the age of 50, my capital will amount to 828.310 (1) investment profile balanced : return 3,56%/year Developing & projecting your financial status
2. Optimize balance sheet First reflection on the future Need for asset structuring according to your short term & long term goals
At the age of 50 Thinking about my future is my savings strategy on-line with my expectations? am I doing what is necessary to have a confortable?? And asking myself new questions what happens when my partner passes away? are there any optimizations possible? A follow-up of your family & financial status
3. Financial comfort for the future Mapping the results of your professional carreer Your vision of your future
At 60 years Financial structuring / estate planning Review my fortune Structuring additional income Protect my partner Transfer to my children 1 Family be prepared & Peace of mind 2 Wealth
Expertise in planning Estate and Financial planning answers and solutions? unorganized What if tomorrow I would not longer be able to make decisions on my own? Who are my heirs? What are the tax consequences of an succession? Expertise Financial planning Estate planning
3. Degroof Petercam
140 years Experience and solid results 7.7 billion euro Size balance sheet ca 1,350 Professionals 9 countries International presence ca 52.3 billion euro Assets under Management 17.1 % Capital ratio (CET1) * 31 December 2016
Strong market share Over 50 billion euro of AUM Assets under management* (in billion euro - 31.12.2016) 60.0 52.3 50.0 40.0 30.0 35.1 AUM at 52.3 billion euro and up both through market effect and net inflow from third party fund distribution 20.0 10.0 0.0 Private investor 9.1 Insitutional investors 5.9 Third-party holders of UCI 2.2 Third-party management Total AUM Reflection of strong performance and high level of expertise * net figures, no double counting
Empowering clients to realize their ambitions Client focus is our DNA Any client who has the ambition to move ahead, today and tomorrow: + Private investors and families Corporates Family business owners Institutional investors Financial service companies And others
Strong values Degroof Petercam empowers clients to achieve their ambitions, today and tomorrow
Our services Asset Management Investment Banking Private Banking Institutional Asset Management Corporate Finance Financial Markets Credits Assets under management (2015): 36 billion Assets in open custody (2015): 70 billion Management of 9 billion institutional portfolios Management of 30 billion investment funds (2015) Leading position in M&A advisory and capital markets in Belgium and France More than 110 assignments in 2015 with 4.7 billion transaction volume in capital market advisory In-house team of 13 sell-side equity research analysts Broker on 21 markets LMBO/LMBI facilities Structured club deals in partnership with sector specialists 29
Private Banking Expertise for specific needs Our expertise Macroeconomics Investment strategy Investment instruments Estate planning Wealth management and family office services Real estate Credits Private equity International Estate Planning Services Art advisory service A broad range of expertise and services for our clients wealth Management types Discretionary management Investment advice Social commitment Philanthropy Impact investi ng Socially responsible investment Family Business Owners Support for family business owners Ownership structure Governance Executive service: Professional wealth
Degroof Petercam The right partner It s not the size of our company that makes us great, but our values and the proximity of our experts. Excellence We favor pragmatic and efficient answers to specific client issues over standard solutions. The right scale Clientcentric Family Business Owners, SME s and Midcaps are offered a local alternative for universal actors and benefit from multidisciplinary services
We invest in you Competence Center : a committed team of experts One contact Managers Competence Center Private Banker Expertise and experience in risk management Local network Knokke Antwerpen Experts Kortrijk Gent Brussels Leuven Hasselt Liège Local and international law & taxation Compliance issues Management of stockoptions Charleroi Wavre Namur Personalised service
AWARDS & RECOGNITION * Best average score within a representative peer group of international asset managers for our equity and fixed income expertise over 5 years 33 March 2018
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Sandra Francken Head of Leuven Office Professional Wealth s.francken@degroofpetercam.com Bertrand Marot Head of Professional Wealth & International b.marot@degroofpetercam.com Thank you