Altshuler Shaham Leads Investment Returns in August Amidst Sale Talks

Investment house Altshuler Shaham has once again topped the performance charts for pension and severance fund managers in August, achieving strong positive returns. This achievement comes at a notable time as the company is in the process of being sold to the insurance company Wefox.

While previous months saw Altshuler Shaham leading due to lower losses compared to competitors during a market downturn, August's performance was driven by exceptionally strong positive yields. This is attributed to Altshuler Shaham's significant exposure to international markets, which outperformed the Tel Aviv Stock Exchange in August. The S&P 500 rose by 3.3% and the Nasdaq by 5%, while the Tel Aviv 35 and 125 indices saw more modest gains of 1.1% and 0.9% respectively. The Tel Aviv market had previously experienced a substantial rally of 130% over two years.

Across various investment tracks, August's average returns exceeded initial expectations. The general track in severance funds yielded 1.4% (vs. 1.1% expected), the stock track saw 2.4% (vs. 2% expected), and the pension track for those under 50 achieved 1.4% (vs. 1% expected). Despite the strengthening shekel eroding some potential overseas gains, markets finished the month positively.

In the general track of severance funds for August, Altshuler Shaham led with a 1.9% return, followed by Meitav and More at 1.7%. However, looking at year-to-date performance, Clal Insurance leads with 8.4%, More is second with 7.7%, and Phoenix and Migdal are tied for third at 7%. In the stock track, Altshuler Shaham posted a remarkable 3.5% return in August, significantly outpacing competitors like More (2.7%). Year-to-date, Clal leads this track with 13.5%.

For pension funds (under 50s track), Altshuler Shaham also took the lead in August with a 2.2% return, with Meitav at 1.7% and Menora Mivtachim at 1.6%. However, More leads year-to-date in this category with 10.7%, followed by Clal at 9.5%. Over a three-year period, More also shows the highest return in pension funds at 55.1%.