Retail Funds in Portugal: An Overview

When discussing retail funds in the context of Portugal, we refer to the local concept of organismos de investimento colectivo em valores mobiliários, or undertakings for collective investment in securities. These are designed with the intention of pooling capital obtained from the public, adhering to the principles of risk sharing and safeguarding the participants’ interests. The risk associated with the investment is collectively shared by the investors.

Open-ended Retail Funds

Portugal houses a significant number of open-ended retail funds. A majority of these have been established within financial service groups in the country, serving as tools to pool clients’ savings. Almost all of the nation’s prominent financial service groups have at least one investment fund management company under their umbrella.

While the number of foreign investment funds aimed at Portuguese investors is on the rise, the market remains relatively small compared to the volume invested in funds by Portuguese financial service groups. This could likely be attributed to the broader client base of these groups compared to entities marketing foreign investment funds. It’s noteworthy that the top five management companies, in terms of assets managed, are affiliated with the five largest financial groups operating in Portugal.

Closed-ended Retail Funds

Compared to open-ended retail funds, the closed-ended retail funds market is more niche. Most retail investors seem to gravitate towards investments that offer easy redemption. However, there has been a noticeable shift from traditional funds (like open-ended funds investing in standard assets) to special investment undertakings (SIUs). SIUs can be either open-ended or closed-ended and feature diverse types of assets, benefitting from a more flexible regulatory framework.

Prismaat: Your Trusted Partner for Investment in Portugal

Looking for guidance and expertise in navigating the retail funds landscape in Portugal? Prismaat stands as your strategic partner. With a vast portfolio of investment opportunities and a deep understanding of the market, we ensure that your investments are both sound and promising. Our collaboration with seasoned legal teams guarantees a smooth and compliant process. Trust Prismaat to guide you in unlocking the robust potential of the Portuguese funds market.