Portuguese pension funds achieved an average return of two per cent in January, thanks to positive returns on bonds and equities, Mercer said.

Last month market performance was marked by a feeling of greater optimism about economic recovery in major economies, particularly in the resolution of the sovereign debt crisis. However, some tension was felt in the oil markets, due to the situation in the Middle East.

Mercer partner Rui Guerra said: "A number of factors contributed to the positive result of the first month of the year, including the sense of greater optimism in the face of signs of recovery in some major economies and the positive performance of the bond investments, particularly in Italy and Spain. With regards to equity, the North American markets and markets in the Pacific had higher returns than Europe."

The yield of private debt obligations with AA credit quality and maturity of more than 10 years, which is the benchmark discount rate for pension funds, was 4.2 per cent at the end of the month, compared to 4.6 per cent at the end of December.

Share Story: