The Financial Services and Markets Authority (FSMA) today is publishing a quarterly overview of Belgian public open-ended investment funds, commonly referred to as collective investment schemes. The overview, which applies to the third quarter of 2021, indicates a significant increase in mixed funds and pension savings funds in particular, as well as growing interest on the part of investors in sustainable funds.
Importance of data
In the process of carrying out its supervisory tasks, the Financial Services and Markets Authority (FSMA) collects a great volume of data. The latter enable it to conduct ongoing risk analyses and monitor the sectors subject to its supervision, as well as to detect certain trends and respond to them quickly. As of today, the FSMA is sharing with the public a number of data relating to the Belgian open-ended investment fund sector offered to the public, i.e., ‘Belgian public collective investment schemes”. Belgian public collective investment schemes, which are subject to the FSMA’s supervision, are very widespread among individual Belgian investors. Such an overview will henceforth on be published every quarter.
More than 195 billion euros invested in Belgian public open-ended investment funds
The total net assets held by Belgian public open-ended investment funds reached a record in 2021, amounting to more than 199 billion euros. This represents an increase of nearly 27% over the past year. This unprecedented growth is due to the positive return on assets held in the portfolio, as well as by a high volume of subscriptions. Whilst Belgians are traditionally inclined to put their savings in savings accounts, the total value of which amounts to more than 293 billion euros, Belgian public open-ended investment funds are not far behind and have seen net inflows of more than 17 billion euros during the past year.
Growth in mixed funds and in pension savings funds
The presentation of the data in the overview distinguishes funds by their investment policy. The analysis shows that mixed funds – ones that invest in both shares and bonds – , pension savings funds and share funds have seen significant increase, both in the third quarter of 2021 and over the past 12 months.
Mixed funds and pension savings funds are popular with individual investors. Net inflows into these types of funds are thus an important indicator of individual investors’ interest in collective investment schemes. Over the past year, mixed funds and pension savings funds have seen net inflows of 6.16 billion euros and 394 million euros respectively.
Investors opt for sustainable funds
A striking aspect of this overview is the important proportion of funds that are described as sustainable. These types of funds saw net inflows of more than 5 billion euros in the third quarter of 2021, attesting to the interest investors have shown in sustainable financial products.
The quarterly overview of Belgian public open-ended investment funds is available on the FSMA’s website.