PORTUGAL - Portuguese pension funds are expected to produce a return of 7.4% for 2004, according to estimates from Watson Wyatt.
The firm expects the funds’ will return 0.7% for the month of December after the dissolution of the Portuguese government at the start of the month.
“The political crisis provoked the biggest weekly fall (some 2%) in the domestic stock market over the last six months,” Watson Wyatt noted.
“Nevertheless markets produced positive performances over the month. The oil price receded again, now 11% off its highs, while the Euro reached a historical maximum of 1.36 against the dollar.
“Overall as seen in the previous month, all asset classes posted positive returns, the only exception being international bonds (hurt by the US dollar slide).”
Main positive contributions to the expected 0.7% for December came from equities, which make up about 29% of the total portfolio.
Portuguese funds produced returns over 2004 of 3% in the first quarter, 0.7% in the second and 1.2% in the third quarter.
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