PORTUGAL – Portuguese pension funds have returned an average 0.8% in October with Euro equities bringing the highest return, according to pension fund consultants Watson Wyatt.

Euro equities tops the list of positive returns this months with +2.8%. The second best performer is Portuguese equities with a 1.4% increase. Euro and Portuguese equities, make up more than 23% of the average pension fund’s allocation.

According to Watson Wyatt European equities lost 1.8% in the third quarter of the year and have so far returned 4.9%, while Portuguese equities have returned 11.7% in the first months of the year.

“Once again the vagaries of oil price led the market direction. Had markets ignored this effect, most equity markets would have had a much stronger gain” Watson Wyatt commented.

Overall all asset classes have had positive returns in October, with Euro public debt fixed rate bonds returning 0.9% and other euro bonds, both fixed and floating rate, have respectively returned 0.8% and 0.2%.

Funds of hedge funds have scored a 0.5% increase and a cumulative 3.1% since January, while properties have returned +0.4% in October and 5.5% in the first ten months.

The only negative figure is non Euro equities “mainly due to US Dollar weakness, almost a 3% fall vis-à-vis the Euro” Watson Wyatt has suggested.

Watson Wyatt also said Portuguese pension funds are expected to close the year with a 7.5% return compared with eight percent last year.

Lat Month Watson Wyatt said pension funds had a 0.9% as investors had retuned from their holidays “as willing buyers.