Overseas funds market worth €42Bn
The European Fund and Asset Management Association (EFAMA), the association which covers local investment fund and asset management associations in various European countries, has released statistics on the investment funds market in Portugal.
Investments in domestic UCITS (Undertakings for the Collective Investment in Transferable Securities) achieved a record of €18.9Bn, but the aggregate of UCITS and domestic alternatives, including real estate, stood at €30Bn.
According to the EFAMA Fact Book, total ownership in Portugal of investment funds stood at €75Bn for 2021 (0.4%) market share, local funds totalled €32Bn (43%), and overseas funds €42Bn (57% market share).
Moreover, the estimate that EFAMA has published on assets under management in overseas investment funds in Portugal is also important. This reached €42Bn which contracts to the €32Bn that EFAMA reported at the end of 2020 – an impressive increase of 31%.
However, EFAMA states, according to Funds People, that market behaviour in 2022 will likely have a significant impact on these figures (the War on Ukraine and energy crisis) but that doesn’t mean that the foreign funds market in Portugal has not been buoyant overall.
Nevertheless out of 271 investment funds, only 13 managed to get positive returns in the first half of this year, while more than 50% suffered negative returns of up to 10%. Portuguese shares, on the other hand, have done well.