The Belgian fund sector experienced a rise of +2.7% during the fourth quarter of 2024, predominantly attributed to gains recorded in the underlying assets, supplemented by net subscriptions. At the end of December 2024, the net assets of publicly distributed funds in Belgium amounted to 309.6 billion EUR.

Funds investing in both non-fixed income securities and fixed income securities experienced gains in their underlying assets as well as net subscriptions during the fourth quarter.

Full year

At the end of 2023, the net assets of publicly distributed funds in Belgium amounted to 271.9 billion EUR. The Belgian fund sector saw an increase in net assets each quarter of 2024, predominantly due to gains recorded by the underlying assets, and to a lesser extent supplemented by net subscriptions.

For the entire year 2024, the net assets of publicly distributed funds in Belgium were 13.9%, or 37.7 billion EUR, higher at the end of December 2024 than at the end of 2023, with 86% of this increase due to gains recorded by the underlying assets.

Forecast for the First Quarter of 2025

Preliminary indications for the first quarter of 2025 point to a slight decline in the net assets of the Belgian fund sector.

The Belgian funds market (according to the list of public collective investment institutions on the FSMA website) is defined as 'the net assets of funds distributed publicly in Belgium under Belgian and foreign law'. BEAMA reports on all share classes of public funds that may be commercialized in Belgium.

Research by BEAMA shows that the net assets of publicly commercialized funds in Belgium increased by 8.2 billion EUR, or +2.7%, during the fourth quarter of 2024. As a result, the publicly commercialized funds in Belgium represented 309.6 billion EUR at the end of December 2024.

The increase in the Belgian funds market during the period October – December 2024 is explained by gains recorded in the underlying assets during this period for nearly 2/3rd and the remaining part by net subscriptions.

The ongoing 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 funds market in 2024, which mainly consists of internationally diversified investment portfolios, cannot be seen separately from the global economic context and geopolitical tensions.

The fourth quarter of 2024 was characterized by a combination of dynamic economic developments (mainly in the AI technology sector), central bank policies, and significant geopolitical events that impacted global financial markets. Overall, the markets closed the year positively.

The main drivers and geopolitical influences were:

• The US presidential elections with the election of Donald Trump;

• Central bank policies with interest rate cuts;

• The economic resilience of various regions, particularly in America;

• Geopolitical tensions, including the conflict in Ukraine and the Gaza Strip.

In short, the fourth quarter of 2024 was a period in which US stocks, particularly large technology companies, dominated global markets, while international markets and bonds showed a more mixed picture, influenced by US monetary policy and geopolitical developments.

Inflation in the European Union was 2.4% at the end of 2024, in stark contrast to the peak recorded in 2022. ECB projections for inflation in the eurozone for 2025 are 2.1%, with a possible further decline in 2027.

Bond prices benefited from falling interest rates, which also favored mixed funds.

There was also significant demand for money market funds, often seen as a safe haven in uncertain times. This effect is also noticeable in the Belgian funds 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 funds market, given the net subscriptions during the fourth quarter in funds that mainly invest in fixed income securities.

The strong growth of the Belgian funds market in 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 – December 2024, driven by gains in the underlying assets.

Thus, the Belgian fund sector increased by 37.7 billion EUR, or +13.9%, during 2024. This increase is 86% attributable to gains recorded by the underlying assets and the remaining part by net subscriptions.

Preliminary indications available to BEAMA for the first quarter of 2025 point to a slight decline in the net assets of the Belgian fund sector. Some economic factors are moving in the opposite direction during this period. For example, US stocks are performing less well than European stocks, and European interest rates are falling while they remain stable in America, possibly leading to an overweight of US securities in various portfolios.

Funds predominantly investing in non-fixed income securities

Within the group of funds that predominantly invest in non-fixed income securities (such as equity funds), only upward trends were recorded during the fourth quarter of 2024. These increases are 70% attributable to gains recorded by the underlying assets and 30% to net subscriptions.

The assets in Belgium of equity funds increased by 4.2 billion EUR, or +4.2%, in the period October – December 2024. This increase is 90% attributable to gains recorded in the underlying assets. At the end of December 2024, the assets of equity funds amounted to 104.3 billion EUR.

The category of mixed funds (including pension savings funds) saw an increase of 2.5 billion EUR, or +1.8%, during the fourth quarter of 2024. This increase is 70% attributable to net subscriptions and 30% to gains recorded by the underlying assets. As a result, the commercialized assets of mixed funds amounted to 141.5 billion EUR at the end of December 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 excellently suited to align the product with the client's risk profile.

Within the category of mixed funds, pension savings funds saw a slight decline during the fourth quarter of 2024 amounting to 0.2 billion EUR, or -0.9%. Pension savings funds represented 26.2 billion EUR in net assets at the end of December 2024. During the fourth quarter of 2024, pension savings funds recorded net subscriptions amounting to 47 million EUR.

Funds with capital protection saw an increase during the fourth quarter of 2024 and represented 2.9 billion EUR in assets at the end of December 2024.

Over the entire year 2024, the net assets of funds that predominantly invest in non-fixed income assets increased by +14.5%, or 31.5 billion EUR.

Funds predominantly investing in fixed income securities

Within the group of funds that predominantly invest in fixed income securities, the assets of publicly commercialized bond funds in Belgium increased by 0.6 billion EUR, or +1.1%, during the fourth quarter of 2024, bringing them to 52.8 billion EUR at the end of December 2024. This increase is 2/3 attributable to gains recorded in the underlying assets and the remaining part to net subscriptions.

The net assets of monetary or money market funds saw an increase of 0.8 billion EUR, or +11.1%, during the period October – December 2024, bringing them to 7.8 billion EUR at the end of December 2024, driven by significant net subscriptions.

Over the entire year 2024, the net assets of funds that predominantly invest in fixed income assets increased by +11.5%, or 6.2 billion EUR.

Sustainable Funds (according to the SFDR classification)

In short, more than 4/5 of the assets distributed in Belgium are classified by asset managers as an SFDR Article 8 or an SFDR Article 9 fund. This allows investors interested in a certain degree of sustainability to choose from 1,246 different funds.

Publicly distributed funds under Belgian law

Public funds under Belgian law represented a total managed net asset of 230.9 billion EUR at the end of December 2024. At the same time, pension savings funds represented nearly 11.4% of public funds under Belgian law.

The calculation of the average return of pension savings funds on an annual basis as of December 31, 2024, yields the following results:

• Over 1 year: +5.1%

• Over 3 years: -1.1%

• Over 10 years: +3.6%

• Over 25 years: +3.7%

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

Non-publicly distributed institutional funds under Belgian law

Since the implementation decrees published in the Belgian Official Gazette on December 18, 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 Ministry of 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 December 2024, the 106 institutional compartments under Belgian law represented 27.3 billion EUR in net assets. These funds appeal to many institutional investors, partly because they add 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 services of BEAMA (info@beama.be)

Or through the general press contacts of Febelfin, namely:

• Febelfin Press Service (02 507 68 31 – press@febelfin.be)

These and other statistics concerning the ICB sector are available on the BEAMA website (only in Dutch/French) under the 'Statistieken/Statistiques' section.