PORTUGAL - Portuguese pension funds returned 0.8% in October, boosted by strong performance by the European equities portfolio.
Global consulting firm Watson Wyatt said the month was characterised once again by high oil prices.
“Had markets ignored this effect, then most equity markets would have had a much stronger gain, fuelled by fundamentals and technical factors as well as the increased demand liquidity provided by institutional investors returning to the market,” Watson Wyatt said.
The most positive contributions came from European equities with a return of 2.7% and Portuguese equities, 1.4%, together making up 23% of the total portfolio.
Property returned 0.4%, cash 0.2%, international bonds 0.3% and funds of hedge funds 1.5%.
The only negative result was in the International equities portfolio, which posted a return of negative 0.4%.
Watson Wyatt said the anxiety over outcome of the US elections also took its toll on the markets.
“On the macro front, more and more indicators are pointing towards the reduction in the pace of economic growth, with the Chinese policymakers’ interest rate hike by the end of the month confirming the slowing trend,” the firm added.
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