Stock market veteran Koen Hoffman: 'Stop turning the tax knobs every two years'
Energy supplier EnergyVision will kick off its long-awaited IPO on Friday. This is the first IPO on the Brussels stock exchange since Azelis' listing in 2021. Koen Hoffman, CEO of the Value Square stock boutique and a veteran in bringing Belgian companies to the stock market, is sounding the alarm about the declining stock market culture. “Are there still financially literate people in politics?”
Take a list of the companies that took the stock market in the 90s and there is a good chance that Koen Hoffman (co) supervised the operation as an investment banker at KBC Securities. From 2012 to 2016, he then headed the bank insurer's stock exchange house. Even after his departure, he remained active in investing, as CEO of Ghent asset manager Value Square, with almost 1 billion euros of assets under management.
With that career, it is not surprising that Hoffman is a great defender of the stock culture and of investing in general. On the eve of EnergyVision's IPO, he says he is sad how poor things are going in our country.
“People underestimate how important investing is. We used to have the “Belgian dentist”: the modal, hardworking professional - in both the public and private sectors - who not only saved but also actively invested in stocks, funds and pension savings products. That figure has almost disappeared today. ' In his office in a beautifully renovated building in Sint-Denijs-Westrem, a sleek sideboard displays some memorabilia, including a hand puppet that recalls the IPO of pharmacy maker Fagron and a yellow N-VA campaign leprechaun, who makes the V sign. 'I thought they fit together in a funny way. '
There used to be the “Belgian dentist”: the modal, hardworking professional - in both the public and private sectors - who saved money and also actively invested. That figure has almost disappeared.
“Investing is too often seen as risky or elitist, even though it is an essential tool for building long-term financial security,” says Hoffman. Perhaps the “Belgian dentist” still exists today and he just prefers to invest in ETFs at a low cost, we suggest. ETF stands for Exchange Traded Fund and is an investment fund that is traded on the stock exchange. “I don't think so. I am not saying that such instruments are bad, quite the contrary. I'm already happy when someone saves every month via an ETF. That is already a start. But such an instrument does not go public. It is not a provider of capital for new companies. We still need active investors.”
A tracker does not go public. It is not a provider of capital for new companies. We still need active investors.
“By the way, are those ETFs that cheap?” , Hoffman wonders. “Many people think that an ETF costs 0.2 percent in annual running costs. In reality, I think you're at an average of 0.6 percent. With us, the average customer does not pay the full percent costs. He does receive an explanation and guidance for that. I don't see that with an ETF. '
Pension gap
According to Hoffman, one of the most worrying consequences of the declining Belgian stock market culture is the widening pension gap. “Take two people with the same monthly gross salary, for example a judge and a top executive in the private sector. On paper, they earn the same amount, roughly around 10,000 euros gross per month, but their pensions vary enormously. Civil servants have a high statutory pension that automatically increases with the index, while employees in the private sector have to adjust their standard of living after their careers with what they save or invest. '
Give people stable rules. Stop turning the tax knobs every two years.
'I once calculated that. Over an entire career and retirement period, that difference can reach more than 1 million euros. Surely all mouths should fall open? If the government wants to skim investors again in the form of new investor taxes, it should at least also dare to review civil servant pensions. '
Hoffman believes that the government has a role to play. Not by constantly inventing new burdens, but by rewarding structural investments in the long term. “Give people stable rules. Stop turning the tax knobs every two years. '
American model
'I've been calling for a Belgian equivalent to the American 401K plan for a long time. (with such a plan, employees can contribute part of their pre-tax income to a pension account, which is then invested in funds, ed.). Let people set aside part of their wages in a tax-friendly way, without ruining the accumulated profits in the slightest gust of political wind. Saving and investing reduces the pressure on social security. That's good for citizens and for the state. '
According to Hoffman, there are other incentives to come up with. “Exemptions for insurers and pension funds that commit to long-term participations in Belgian companies or a “market maker” system where stock exchange houses guarantee the financial analysis and smooth trading in shares of smaller listed companies.”
Are there still economists in parliament? There won't be many.
In addition, he insists on education. “We need to make financial literacy mandatory in education - not just investing, but also borrowing, taxes, everything. Without knowledge, investing remains something for the happy few, even though it could just be the biggest democratization of capital. '
Hoffman believes that Belgium should be careful. When the tax burden becomes too great and legal certainty is lacking, capital simply looks for other places. 'I received it from Johan Van Overtveldt yesterday (politician for the N-VA and former Minister of Finance, ed.) a message: “Spain, Italy and Greece are the top countries at the moment.” How is that? Rich people go there because, for example, they get a flat-tax agreement with the government, a ruling that they can discuss. '
“Van Overtveldt was the last Minister of Finance to bring the financial sector to the table,” says Hoffman. “Now we hear nothing from policy makers. Are there any economists still in parliament at all? There won't be many. '
Light points
However, Hoffman also sees bright spots. He refers to EnergyVision's planned IPO. The growth company active in green energy would be the first newcomer to the Brussels stock exchange since Azelis in 2021. 'I am sincerely proud of that. Such an IPO proves that it is still possible: a healthy company that raises money from a wide audience, lets people benefit from the energy transition and mobilizes capital for the future. That's the engine we need. '
For Hoffman, that should not remain an exception. “Give Belgium ten companies like VGP (the developer of logistics parks, ed.). Companies that grow step by step, raise capital on the stock market and become European leaders within the stock market echelons. But that is only possible if we rebuild a solid ecosystem where investors, intermediaries and analysts can play their part. Today, all but KBC Securities, all Belgian market makers have disappeared, and you can count the number of independent stock houses on two hands. In other countries, there are dozens. That is unhealthy. Without those links, the market won't flourish. '
According to Hoffman, the political debate about investing must finally overcome the ideological cramp. “This is not a left-right issue. A healthy stock market culture is a buffer against poverty, a lever for innovation and an opportunity for everyone to build wealth. Anyone who demonizes that is risking our prosperity. '
References
- Source: De Tijd
- Link: https://www.tijd.be/ondernemen/financiele-diensten-verzekeringen/veteraan-koen-hoffman-over-tanende-beurscultuur-zijn-er-nog-wel-financieel-geletterde-mensen-in-de-politiek/10612352.html
- Author: Ellen Vermorgen, Michaël Sephiha
- Date: 26/06/2025
