Altshuler Shaham Leads Israeli Provident Funds in August Amid Global Market Rebound

Investment house Altshuler Shaham regained the top spot in Israeli provident fund returns for August, benefiting from a strong earnings season in the U.S. and continued momentum in technology stocks that fueled a global market rebound. U.S. indices like the Nasdaq and S&P 500 saw gains of approximately 4% and 3% respectively, while major Tel Aviv Stock Exchange indices experienced slight declines: the TA-35 fell 0.26%, the TA-90 dropped 1.02%, and the TA-125 decreased by 0.37%.

Despite the local market downturn, the ten largest Israeli provident funds analyzed by Walla! Money achieved positive returns in August. On average, the general track yielded 1.34%, and the stock track returned 2.33%. Altshuler Shaham's fund delivered the highest returns, with 1.93% in the general track and 3.49% in the stock track. These figures surpassed the returns of Analyst's fund by about 1.3% in the general track and Harel Insurance's fund by roughly 1.65% in the stock track.

Leah Perminger, Deputy CEO of Pension and Provident Fund Investments at Altshuler Shaham, attributed the strong performance to global market trends, noting significant gains in U.S. energy (up 8.5%) and technology (up 6.1%) sectors. In Israel, insurance and banking sectors saw notable increases of approximately 13.3% and 6.9%, respectively, contrasting with sharp declines in local technology and defense stocks. Perminger emphasized the importance of sector selection and diversification, both internationally and domestically.

Perminger further explained that Altshuler Shaham's success was partly due to its exposure to energy and raw materials abroad, along with strategic stock selections in technology and semiconductors. Domestically, exposure to banks and underweight positions in weaker sectors contributed to the positive outcome. She highlighted the crucial role of a diversified portfolio and active management within each market.

Looking ahead, Perminger expressed caution regarding upcoming uncertainties, including U.S. bond yields, inflation, energy prices, geopolitical events, and the upcoming Israeli elections, all of which are expected to impact both Israeli and global stock markets.