Portuguese investment funds assets suffer €500,000 losses in 3 months

Assets under management by Portuguese investment funds have seen a half-a-million- euro value wipe off in just three months with €223.6 million lost in October alone.

This is according to the monthly bulletin from the Portuguese Association of Investment Funds (Associação Portuguesa de Fundos de Investimento, Pensões e Patrimónios (APFIPP)).

Business daily Negócios reports that assets under management fell 1.2% in October on September (down 1%) and August (down 0.5%). From August to October funds lost €502.6 million.

The consecutive falls mean that total assets under management in Portuguese funds now stand at €17.826,5 million (October) close to the value registered at the start of the year (€17.130,9 million) or under €8Bn.

Moreover, investors also took around €80 million out from these financial products in October alone.

Nevertheless, looking at 2023 as a whole, the year was positive on 2022, up 4.1%, although if losses continue in November and December, Portuguese funds could post a net loss.

As was the case with the value of assets under management, demand for Portuguese funds also slowed in October. The volume of subscriptions was €334 million but the volume of redemptions was €416 million leaving a negative balance.

To October €303.6 million was invested in national funds, (to September it was €388.7 million). The value of subscriptions for the year to October did increase by €2.66Bn to €2.99Bn, but redemptions and or losses also increased from €2.27Bn to €2.69Bn.

In October, of the 24 asset classes recognised by the APFIPP, 16 suffered redemptions that were higher than subscriptions.

However, some funds did well, including Montepio Gestão de Ativos (+€28.6 million), Santander Asset Management (€+13 million). IM Gestão de Ativos (€+10.5)

The funds that didn’t perform so well include Caixa Gestão de Ativos (€-85.2), BPI gestão de ativos (€-43.1) and GNB Fundos Mobiliários (€-6.5 million).