Quarterly Benchmarks on Asset Management – 3rd quarter 2021

3rd Quarter 2021

The value of assets under individual¹ and collective portfolio management in Portugal amounted to 69,285.9 million euros during the third quarter of 2021 - a decrease of 10,732.9 million than during the previous quarter and 6,437.7 million less than in the same period of 2020.

• Individual Asset Management

Assets under individual management decreased 24.3% apropos June, standing at 36, 774.3 million euros, and was down by 24% over the same period of the previous year.

Listed securities and investment units accounted for 89.1% of the investment. The domestic shares segment decreased 70.1% apropos the previous quarter and 66.5% apropos the third quarter of 2020, totaling 154.4 million euros. Portfolios of shares issued by non-resident entities amounted to 992.4 million euros at end September - 0.8% less than in June and 14.8% more than in the same period of last year.

Investment in domestic public debt decreased 36.6% apropos the end of the second quarter down to 7,186.9 million euros, while the amount invested in foreign public decreased 32.8% compared to the previous three months and fell 33.9% during the same period. Investment in bonds issued by domestic entities decreased by 40.3% in the quarter, down to 137.7 million euros, and those issued by non-resident entities decreased 30.7% down to 5,829.6 million euros.

Portugal kept as the main investment destination (20.3% of the total), with a quarterly drop of 38.1%, followed by Germany, decreasing by 35.1% in the quarter and Spain, dropping by 21.9%

Caixa Gestão de Ativos led this market segment during the quarter, with 26.0%, corresponding to 9,567.7 million euros of assets under management, followed by Santander Asset Management (15.9%) with 5,850.5 million and Banco Comercial Português (13.7%) with 5,054.0 million.

• Collective portfolio management

The value managed by collective investment undertakings in transferable securities (UCITS), alternative investment funds (AIFs), real estate investment funds (REIFs), special real estate investment funds (SREIFs), real estate asset management funds (REAMFs) and credit securitisation funds (CSFs) amounted to 32,511.7 million euros in the third quarter (3.4% more than in the previous three months and 18.8% more than in the same period of 2020).

Investment in securities assets, which includes UCITS and AIFs, amounted to 18,382.9 million euros at the end of September, representing an increase of 6.8% compared to June and a 38.9% in relation to the same period of last year.

The value of UCITS portfolios was up by 6.9% over the previous three months registering 18,055.8 million euros. The AIFs rose 2.7% up to 327.0 million euros.

In UCITS, the value under management of equity funds increased by 8.26 and bond funds, 2.0%. Savings-retirement funds (SRFs) increased 8.0%. These categories of funds are among the highest in the overall portfolio value. The value of money market funds decreased by 9.3% on a quarterly basis and the value under management of flexible funds rose by 7.9%.

The main destinations for investment in foreign securities were the United States of America (16.8% of the total amount invested), Germany (15.2%) and Luxembourg (12.4%). Portugal registered 3.9%, with 20.8% of the value of the investments was made in shares, 20.5% in public debt and 44.9% in private debt.

Caixa Gestão de Ativos was the management entity with the largest market share in this segment (33.8%), followed by IM Gestão de Activos (21.7%) and BPI Gestão de Ativos (17.5%).

In real estate investment, made through REIFs and SREIFs, the amount under management registered 10,361.3 million euros, decreasing by 0.03% apropos the previous quarter. In real estate asset management funds (REAMFs), the amount under management decreased by 1% compared to June, down by 413.4 million euros.

Square Asset Management had the highest market share in the quarter (11.8%), followed by Interfundos (11.7%) and Caixa Gestão de Ativos (9.1%).

Securitisation funds (SFs) generated 3,354.0 million euros at the end of September - 2.7% less than at the end of the previous quarter and 9.8% less than in the same period of 2020. Mortgage loans that accounted for 99.3% of the total investment weighting, continued to be the main asset in the portfolio and dropped 2.7% compared to the previous quarter and 9.9% apropos the same period of the previous year, down to 3,331.5 million euros.

• Marketing of foreign UCITS

The value under management of foreign UCITS traded by entities registered at the CMVM amounted to 7,562.8 million euros in the third quarter, an 23.8% increase than in the previous three months and 70.6% more than in the same period of last year.

Abanca Portugal had the highest market share (21.1%), followed by BEST (14.8%) and Banco Comercial Português (12.4%).

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^[1] Individual asset management is the set of values that belong to a holder considered individually. It is also referred to as asset management or portfolio management on behalf of a third-party.