The National Bank of Belgium (NBB) has released its latest data showing a significant rise in the value of outstanding units in Belgian non-monetary undertakings for collective investment (UCIs) during the first quarter of 2023. The total value of outstanding UCI units surged by €13.3 billion compared to the end of 2022.
The increase in value was primarily driven by growth in transactions, amounting to €5.1 billion, with Belgian households contributing €2.8 billion to this figure. Additionally, positive valuation effects played a vital role in the surge, accounting for €8.2 billion of the overall increase, mainly due to fluctuations in the stock market.
The rise in transactions was particularly notable in equity UCIs, which saw an increase of €2.1 billion, followed closely by bond UCIs with a rise of €2.0 billion. However, despite this impressive growth, the total value of UCI units at the end of the first quarter of 2023 (€215.4 billion) remains slightly lower compared to the same period in 2022 (€222.9 billion).
Furthermore, the NBB data revealed a detailed breakdown of the change in the financial liabilities of non-monetary undertakings for collective investment under Belgian law:
- UCI units: €20.0 billion as of March 31, 2023 (compared to €19.5 billion at the end of 2022)
- Bond UCIs: €74.6 billion as of March 31, 2023 (compared to €75.8 billion at the end of 2022)
- Equity UCIs: €23.4 billion as of March 31, 2023 (compared to €24.3 billion at the end of 2022)
- Index-linked UCIs with guaranteed capital: €3.0 billion as of March 31, 2023 (compared to €3.1 billion at the end of 2022)
- Pension savings UCIs: €94.5 billion as of March 31, 2023 (compared to €100.2 billion at the end of 2022)
- Total UCI units: €215.4 billion as of March 31, 2023 (compared to €222.9 billion at the end of 2022)
Additionally, the data also indicated that Belgian households, the primary holders of UCI units, experienced a positive growth in their holdings. As of March 31, 2023, they held units valued at €123.3 billion, constituting 57% of all units, and showing an increase of €7 billion from the end of 2022.
The majority of the net investment by Belgian households went to equity UCIs, with an increase of €1.7 billion, while positive valuation effects added €4.2 billion to their holdings. Belgian households primarily held units in mixed UCIs (€70.1 billion), followed by equity UCIs (€24.2 billion), and pension savings UCIs (€22.8 billion).
The NBB’s report reflects the ongoing dynamism in the Belgian non-monetary undertakings for collective investment sector, which continues to attract investments and experience value fluctuations driven by market movements.