Altshuler Shaham Leads Study Funds in August Amid Ownership Change

Study funds in Israel's general track achieved positive returns in August, with the ten largest institutions posting an average return of 1.35%. Altshuler Shaham topped the list with a 1.93% return, followed by Meitav with 1.69% and More with 1.65%. Harel and Analyst were at the bottom, with 0.98% and 0.63% respectively.

Altshuler Shaham's strong August performance is notable given its recent weaker years. Year-to-date, it holds a 6.45% return, below the average of 6.84%. Over the past three years, Altshuler Shaham's return of 34.11% is the lowest among the top ten, compared to an average of 40.51%. Meanwhile, Clal continues to lead year-to-date with 8.41%, and More is second with 7.68%. Clal also leads over three years with 44.7%, ahead of The Phoenix (43.04%) and Analyst (43.03%).

The August results for Altshuler Shaham come during significant drama surrounding the company, as Gilad Altshuler and Kalman Shaham agreed to sell controlling interest to Winsure and CEO Yair Levinstein for approximately 1.8 billion shekels. The Altshuler Shaham brand is expected to disappear from the pension and provident fund sector after the deal closes. This August success follows changes in investment management and reduced involvement from Gilad Altshuler, potentially signaling a turnaround after years of underperformance and significant withdrawals.

Guy Mani, Chief Investment Officer at Meitav, attributed August's gains primarily to overseas markets, particularly a recovery in the technology sector. He noted that the Israeli market was weaker, impacted by declines in the TA-35 index and sectors like real estate and renewable energy. Mani warned of increasingly challenging market conditions, citing rising bond yields, especially long-term ones, with US 10-year Treasury yields exceeding 5%. He also pointed to rising commodity prices, particularly oil above $100, increasing inflation fears and the possibility of further interest rate hikes.

In response to these conditions, Meitav is adopting a more cautious approach, favoring the banking sector and diversified technology companies in the stock market. Mani advised against timing the market based on current risks, emphasizing a long-term investment perspective. He suggested that opportunities are emerging in higher-yielding debt markets.