Altshuler Leads August Gains in Israeli Study Funds, Long-Term Performance Varies

In August, Altshuler Shaham emerged as the top performer among Israeli study funds (קרנות השתלמות) in both the general and equity tracks, driven by significant exposure to international markets and technology stocks. The general track saw Altshuler Shaham achieve a 1.9% return, surpassing competitors like Meitav (1.7%) and More (1.6%). This August success is attributed to a high allocation to overseas markets, particularly U.S. tech shares, which experienced a strong month. However, the strengthening shekel against the dollar partially offset these gains for Israeli investors.

When examining longer performance periods, the landscape shifts considerably. Over the year-to-date and 12-month horizons, Clal leads the general track, with returns of 8.4% and 15.3% respectively. In the equity track, Clal also leads year-to-date with 13.5% and boasts a 26% return over the past 12 months. Altshuler Shaham's August performance, while strong for the month, places it lower in these longer-term rankings.

Looking at a three-year cumulative return, Clal again demonstrates robust performance in the general track with 43.6%, followed by Phoenix (42.7%) and Analyst (42.5%). In the equity track over three years, More leads with 75.7%, followed closely by Clal at 74.4%. Altshuler Shaham lags significantly in this three-year equity comparison, ranking last with 62.4%.

The article emphasizes that monthly performance can be misleading, often reflecting portfolio structure and market exposure rather than consistent management quality. Factors like currency fluctuations and sector-specific rallies can create short-term leaders. Investors are advised to consider management fees and long-term performance across various periods, rather than chasing the top monthly performer. The choice of fund and track should align with an individual's investment horizon and risk tolerance.