Funds Reports
Portugal Golden Income Fund - March 2025 Report
Welcome to the Portugal Golden Income Fund March Report, available for download below.
Hi all,
In March, the PGI Fund experienced a decline of 2.31%, primarily due to corrections in equities and the US dollar. This resulted in a -3.71% performance for the first quarter of 2025, though the fund is still up +2.21% over the last six months.
The turbulence in US leadership has quickly spread to markets and investors throughout March and early April. Nearly all asset classes saw declines in March, and even traditional safe havens like US Treasuries and the US dollar (down 4.27% against the euro) failed to provide protection. Remaining cautious throughout February and March, our exposure to risky assets remained below central allocations. Our US equity allocation averaged around 12.5%, with crypto assets below 8%. Additionally, we maintained higher-than-average cash positions, generally above 10%, along with a 3% position in gold, all intended to protect the portfolio from downside risks. While this strategy offered some protection, the unexpected US dollar correction detracted more than 1% from the PGI's performance. Our gold position was the sole positive contributor, adding a mere 12bp. Despite a -40bp contribution, our Portuguese corporate bond holdings still outperformed the broader European corporate bond market, with a decline of -0.57% compared to the European market's -1.02%.
On a brighter note, PGI is currently performing flat in April. We successfully utilized our dry powder to increase our US equity exposure to 16% in early April. We've also decided to diversify by adding non-US equities, recognizing a less favorable outlook for US equities and, particularly, the US dollar. While we maintain a strong long-term outlook for US equities, we believe greater diversification is necessary in the short term.
In the six months since its launch, PGI's Class A shares have delivered a return of 2.17%. In comparison, the S&P 500 lost 2.7%, the PSI20 gained 1.07%, and the USD fell 2.99% against the euro. Given that volatility appears to be here to stay, we believe we are well-positioned to capitalize on it by gradually increasing risk within the portfolio.
Thank you for your trust
Nuno Serafim
Month Report PGI - March 2025
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Nuno Serafim
Managing Partner
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Nuno is an experienced financial executive with broad experience in the Asset Management industry, being board member of IMGA, where he served as Chief investment Officer, overseeing €3.4B of AuM before he founded 3 Comma Capital, together with Robert and Patrick Hable in 2022.
