Portuguese pension funds return 0.6%
PORTUGAL - Portuguese pension funds reported a 0.6% return in January 2006, a month marked by volatility, according to Watson Wyatt.
The firm said the compounding of SEMP’s average asset allocation as at the end of September 2005 with the corresponding indices’ monthly returns produced an expected average return of +0.6% (month on month).
Watson Wyatt said January had been a good month for pension funds, even despite oil’s 12% increase, triggered by the dispute between Russia and Ukraine over natural gas supplies, the stand-off between Iran and the international community over Iran's nuclear ambitions, the Hamas victory in the Palestinian elections, and the attacks on Nigerian oil refineries.
Main positive contributions came from equities, said the firm. These account for approximately 34% of the total portfolio. The domestic equity market was also found to have performed well, reaching a new four-year high.
Watson Wyatt said the month got off to a strong start when corporate results were released, but that stronger energy stocks and merger and acquisition activity were followed by a weaker end of the month.
Expected returns, non-annualised, for January 2006 were +0.6%.
Actual returns were 1.9% in Q1 for 2005, 2.5% in Q2 for 2005, and 2.9% for Q3 in 2005.
By Lisa Haines
Latest stories
Five stories you may have missed this week
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
RBS reports £100m GMP impact; slashes equity exposure by two thirds
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Good communications are more important than ever
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point
Back to Top
