Figures for the UCITs sector 2nd quarter 2020

During the second quarter of 2020, the Belgian fund sector saw a growth of 9.4%, primarily due to capital gains recorded by the underlying assets, supplemented by net subscriptions. The capital gains generated by the underlying assets during the second quarter were in stark contrast to the losses recorded one quarter earlier due to the impact of the Covid-19 pandemic on the global economy and financial markets.

As of the end of June 2020, the net assets of publicly distributed funds in Belgium amounted to 209.0 billion EUR. During the second quarter, more than 60% of the decline that occurred during the first quarter of 2020 due to the impact of the Covid-19 pandemic had already been recovered.

The net assets of funds primarily investing in fixed-income securities increased by 4.5% during the second quarter of 2020. The net assets of funds primarily investing in non-fixed income securities, such as mixed funds and equity funds, rose by 10.9% during this period.

Within the category of mixed funds, pension savings funds experienced an increase of 1.3 billion EUR during the April to June 2020 period. Mixed funds saw the largest absolute increase in their net assets during the second quarter, driven both by capital gains recorded by the underlying assets and net subscriptions. Equity funds saw the largest relative increase during this period, also due to capital gains recorded by the underlying assets and net subscriptions.

Preliminary indications for the third quarter of 2020 point to a continued recovery in the net assets of the Belgian fund sector.

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

Research by BEAMA shows that the net assets of publicly marketed funds in Belgium increased by 17.9 billion EUR, or 9.4%, during the second quarter of 2020. As a result, publicly marketed funds in Belgium represented 209.0 billion EUR at the end of June 2020.

The increase in the Belgian fund market during the April to June 2020 period is mainly attributed to positive market developments that occurred during this period in response to the recovery of financial markets. This recovery was a response to the decline that occurred during the first quarter of 2020 due to the Covid-19 pandemic. The positive market developments during the second quarter led to a recovery in the underlying assets of the funds, resulting in more than 60% of the losses incurred during the January to March 2020 period being recovered.

Preliminary indications available to BEAMA for the third quarter of 2020 suggest a continued recovery in the net assets of the Belgian fund sector.

Within the group of funds primarily investing in fixed-income securities, the assets of publicly marketed bond funds in Belgium increased by 2.5 billion EUR, or 6.8%, during the second quarter of 2020, bringing them to a total of 39.3 billion EUR at the end of June 2020. This amount was higher than the situation at the end of 2019 (pre-Covid-19).

The increase is primarily explained by 2/3 being due to net subscriptions and 1/3 by capital gains recorded by the underlying assets.

The net assets of monetary or money market funds decreased by 0.5 billion EUR, or 5.6%, during the April to June 2020 period.

This decrease was primarily due to a technical adjustment in the portfolios of mixed umbrella funds. Given the positive market movements during the second quarter of 2020, asset managers of umbrella funds partially replaced their underlying stable monetary funds with bond funds and more volatile equity funds to take advantage of the recovery in financial markets. In other words, due to the initial recovery from the Covid-19 pandemic, the technique of capital protection was partly set aside by mixed umbrella funds.

Within the group of funds primarily investing in non-fixed-income securities (such as equity funds), except for capital-protected funds, only upward trends were recorded during the second quarter of 2020. These increases are attributed to 5/6 being due to capital gains recorded by the underlying assets and 1/6 to net subscriptions.

Assets in Belgium of equity funds increased by 7.4 billion EUR, or 15.1%, during the April to June 2020 period. This increase is primarily attributed to 3/4 being due to capital gains recorded by the underlying assets and 1/4 to net subscriptions. As of the end of June 2020, the assets of equity funds amounted to 56.2 billion EUR. Equity funds are currently 9.6 billion EUR below their level at the end of 2019 (pre-Covid-19).

The category of mixed funds (including pension savings funds) saw an increase of 8.8 billion EUR, or 9.5%, during the second quarter of 2020. This increase is primarily attributed to 90% being due to capital gains recorded by the underlying assets. This brings the marketed assets of mixed funds to 101.6 billion EUR as of the end of June 2020, which is 4.0 billion EUR below their level at the end of 2019.

Mixed funds have seen increasing success in recent years, and since 2015, they have become the largest asset class. Due to their active asset allocation, mixed funds are well-suited for risk diversification policies within the framework of MiFID II, making them an excellent choice for aligning products with client risk profiles.

Within the category of mixed funds, pension savings funds experienced an increase of 1.3 billion EUR, or 6.8%, during the second quarter of 2020. As of the end of June 2020, pension savings funds represented net assets of 20.2 billion EUR. This places pension savings funds 1.2 billion EUR below their "all-time high" in marketed assets at the end of 2019.

During the second quarter of 2020, pension savings funds recorded net subscriptions totaling 151 million EUR.

During the second quarter of 2020, funds with capital protection experienced a decrease of 0.3 billion EUR and represented assets of 3.9 billion EUR at the end of June 2020. This movement is attributed to net redemptions.

Publicly Distributed Funds under Belgian Law

De openbare fondsen naar Belgisch recht waren eind juni 2020 goed voor een totaal beheerd netto actief van 148,8 miljard EUR. Op datzelfde ogenblik vertegenwoordigden de pensioenspaarfondsen hierin 20,2 miljard EUR, ofwel bijna 1/7de van de openbare fondsen naar Belgisch recht.

De berekening van de gemiddelde return van de pensioenspaarfondsen op jaarbasis per 30 juni 2020 levert volgend resultaat op:

BEAMA has developed a dashboard on pension savings funds, which is attached to this press release. Thanks to this dashboard, key figures on third-pillar pension savings funds and their evolution are visually presented in a concise manner on a quarterly basis.

Non-Publicly Distributed Institutional Funds under Belgian Law

Since the implementing royal decrees were published in the Belgian Official Gazette on December 18, 2007, investment vehicles tailored to institutional investors can be developed in the form of "Institutional ICBs with a variable number of units." These institutional funds are non-public funds that must be registered with the Federal Public Service Finance.

These institutional funds should not be confused with publicly distributed funds with non-retail share classes that are registered with the FSMA.

As of the end of June 2020, the 128 institutional compartments under Belgian law represented 15.9 billion EUR in net assets. These funds are attractive to many institutional investors because they provide depth to the institutional markets in terms of financial assets and pension provision.