The Belgian fund sector saw a rise of +3.0% during the third quarter of 2024, mainly due to capital gains recorded in the underlying assets, supplemented by slight net subscriptions. At the end of September 2024, the net assets of publicly distributed funds in Belgium amounted to 301.4 billion EUR.

Funds investing in non-fixed income securities recorded capital gains in their underlying assets during the third quarter but saw slight net redemptions.

Funds investing in fixed income securities experienced both capital gains in their underlying assets and net subscriptions during the third quarter.

First nine months

At the end of 2023, the net assets of publicly distributed funds in Belgium amounted to 271.9 billion EUR. The Belgian fund sector experienced an increase in net assets during the first nine months of 2024, mainly due to capital gains recorded by the underlying assets, and to a lesser extent, supplemented by net subscriptions. As a result, the net assets of publicly distributed funds in Belgium were 10.8%, or 29.5 billion EUR, higher at the end of September 2024 compared to the end of 2023.

Forecast for the fourth quarter of 2024

Preliminary indications for the fourth quarter of 2024 suggest continued growth in the net assets of the Belgian fund sector.

The Belgian fund market is defined as "the net assets of funds publicly distributed in Belgium under Belgian and foreign law." BEAMA reports on all share classes of public funds that may be commercialised in Belgium.

Research by BEAMA shows that the net assets of publicly commercialised funds in Belgium increased by 8.9 billion EUR, or +3.0%, during the third quarter of 2024. As a result, the publicly commercialised funds in Belgium represented 301.4 billion EUR at the end of September 2024.

The increase in the Belgian fund market during the period July – September 2024 is mainly explained by capital gains recorded in the underlying assets during this period, supplemented by slight net subscriptions.

The continued demand for funds indicates that Belgian investors still have confidence in funds and are aware of the opportunity costs associated with various forms of saving and investing.

The evolution of the Belgian fund market in the first nine months of 2024, which mainly consists of internationally diversified investment portfolios, cannot be seen in isolation from the global economic context and geopolitical tensions.

Inflation in the European Union further decreased to 2.2% in the first nine months of 2024, in stark contrast to the peak recorded in 2022. This is mainly due to the decline in energy prices (with deflationary prices at times). ECB projections for inflation in the eurozone are 2.0% by mid-2025, with further declines expected in 2026 and 2027 to 1.9%.

Financial markets experienced a bumpy ride in the third quarter of 2024, partly due to ongoing geopolitical tensions. The interest rate intervention by the Japanese central bank in August 2024, aimed at supporting the YEN, briefly caused a global stock market decline. Fortunately, the impact was limited. In September, interest rate cuts by both the ECB and the FED gave the markets a new boost.

Funds were also influenced by market movements due to the upcoming US presidential elections.

Bond prices benefited from falling interest rates, allowing mixed funds to take advantage.

There was also increased demand for money market funds, often seen as a safe haven in uncertain times. This effect is also noticeable in the Belgian fund market, given the significant net subscriptions in money market funds.

Financial markets and investors anticipated the planned interest rate cuts by central banks worldwide, resulting in increased demand for fixed income securities. This effect is also noticeable in the Belgian fund market, given the net subscriptions during the third quarter in funds primarily investing in fixed income securities.

Evolution of the Belgian fund market over the last decade

The strong growth of the Belgian fund market in the first nine months of 2024 is due to the recovering stock and bond markets. As a result, all asset classes were able to achieve positive results during the period January – September 2024.

The Belgian fund sector increased by 29.5 billion EUR, or +10.8%, during the first nine months of 2024. This increase is 90 to 95% attributable to capital gains recorded by the underlying assets, and the remaining part to net subscriptions in funds primarily investing in fixed income securities. This increase is also confirmed by the statistical data of the NBB.

Preliminary indications available to BEAMA for the fourth quarter of 2024 suggest continued growth in the net assets of the Belgian fund sector.

Within the group of funds primarily investing in non-fixed income securities (such as equity funds), only upward trends were recorded during the third quarter of 2024. These increases are attributable to capital gains recorded by the underlying assets.

Detailed evolution of commercialised fund assets over the last decade

The assets in Belgium of equity funds increased by 0.9 billion EUR, or +0.9%, during the period July – September 2024. This increase is entirely attributable to capital gains recorded in the underlying assets. At the end of September 2024, the assets of equity funds amounted to 100.0 billion EUR.

The category of mixed funds (including pension savings funds) saw an increase of 4.7 billion EUR, or +3.5%, during the third quarter of 2024. This increase is 60% attributable to capital gains recorded by the underlying assets and 40% to net subscriptions amounting to 1.8 billion EUR. As a result, the commercialised assets of mixed funds amounted to 138.9 billion EUR at the end of September 2024.

Mixed funds have been increasingly successful in recent years and have been the largest asset class since 2015. Due to their active asset allocation, mixed funds are very suitable for implementing a risk diversification policy within the framework of MiFID II: they are excellent for aligning the product with the client's risk profile.

Within the category of mixed funds, pension savings funds saw an increase during the third quarter of 2024 amounting to 0.6 billion EUR, or +2.5%. Pension savings funds represented a net asset amount of 26.4 billion EUR at the end of September 2024. During the third quarter of 2024, pension savings funds recorded net subscriptions amounting to 3 million EUR.

Funds with capital protection saw an increase during the third quarter of 2024 and represented assets of 2.7 billion EUR at the end of September 2024.

Over the first nine months of 2024, the net assets of funds primarily investing in non-fixed income assets increased by +11.3%, or 24.6 billion EUR.

Within the group of funds primarily investing in fixed income securities, the assets of publicly commercialised bond funds in Belgium increased by 1.8 billion EUR, or +3.5%, during the third quarter of 2024, bringing them to an amount of 52.2 billion EUR at the end of September 2024. This increase is largely attributable to net subscriptions.

The net assets of monetary or money market funds saw a noticeable increase of 1.4 billion EUR, or +25.9%, during the period July – September 2024, bringing them to an amount of 7.0 billion EUR at the end of September 2024.

Over the first nine months of 2024, the net assets of funds primarily investing in fixed income assets increased by +9.0%, or 4.9 billion EUR.

More than 4/5 of the assets distributed in Belgium are classified as SFDR Article 8 or SFDR Article 9 funds according to asset managers. This allows investors interested in a certain degree of sustainability to choose from 1,235 different funds.

Public funds under Belgian law represented a total managed net asset of 225.6 billion EUR at the end of September 2024. At the same time, pension savings funds accounted for nearly 12% of public funds under Belgian law.

The calculation of the average return of pension savings funds on an annual basis as of 30 September 2024 yields the following results:

BEAMA has developed a dashboard for pension savings funds, which is attached to this press release. This dashboard provides a visual summary of key figures on the third pillar pension savings funds and their evolution on a quarterly basis.

Since the implementation of the Royal Decrees published in the Belgian Official Gazette on 18 December 2007, investment vehicles can be developed tailored to institutional investors in the form of "Institutional ICB with a variable number of participation rights." These institutional funds are non-public funds that must be registered with the FPS Finance.

These institutional funds should not be confused with public funds with non-retail share classes, which are registered with the FSMA.

At the end of September 2024, the 107 institutional compartments under Belgian law represented 27.4 billion EUR in net assets. These funds appeal to many institutional investors, partly because they provide depth to the institutional markets in terms of financial assets and pension formation.

More information can be obtained through the representation for BEAMA, namely:

• Mr. Marc Van de Gucht, Director-General BEAMA

(02 507 68 72 – marc.van.de.gucht@febelfin.be)

• At the BEAMA services (info@beama.be)

Or through the general press contacts of Febelfin, namely:

• Febelfin Press Office

(02 507 68 31 – press@febelfin.be)

These and other statistics concerning the ICB sector are available on the BEAMA website (https://www.beama.be/) under the 'Statistics' section.