Portugal GV Fund Comparison?

[tkrunning (Thomas K. Running)]

I’ll quote my own post from another thread:

@tkrunning

If the definition of an open fund is one invested in listed equities and that can be redeemed at any point, then I’d add for example Portugal Liquid Opportunities to that list as well.

Another question crossed my mind recently: What would happen if any of these funds (in particularly those tracking PSI-20) would invest in a company related to real estate? Would you technically be in breach of your GV terms?

While it looks like none of the companies that currently make up the PSI-20 index are directly related to real estate (at least if we assume construction companies are excluded from the definition), what if one that is related to RE would enter the PSI-20 index due to overtaking some of the current constituents’ market cap?

Also, as far as I am aware, AIMA primarily considers the management regulations supplied by the fund manager when determining if the fund is eligible. I assume some of these open funds (especially those that are not specifically tailored to GV-investors) fail to officially exclude real estate companies in their management regulations. However, I also don’t know whether that is necessary or not.

Curious to hear if anyone has received legal opinions on this since the law changed?

I know Oxy Capital filters out any RE companies for the Portuguese part of their Portugal Liquid Opportunities fund. I assume Optimize does the same. Have anyone received comments from IMGA and BPI regarding how they would handle this?

It’s true that redemptions in Portugal Liquid Opportunities can take up to six months officially, although the manager claims to generally process them in less than a month. This fund also maximizes the non-Portuguese exposure you can get, meaning you only have around €300K exposed to the Portuguese market.

Regarding the potential issue I see for the fund tracking the PSI-20 index (BPI, IMGA, not sure about Sixty Degrees), that may just mostly be theoretical, but I think it’s a risk worth highlighting nonetheless.