Mixed Market Performance Affects Israeli Savings Plans in September

Israeli savings and pension funds experienced mixed returns in September, reflecting broader market volatility. The general track, considered conservative, saw an average negative yield of 0.1%. In contrast, the stock track and the S&P 500 track posted average positive returns of 0.2% and 2% respectively.

According to Avi Berkovitz, Deputy Head of Investments at Meitav Gemel and Pensions, the general track's returns fluctuated between a positive 0.2% and a negative 0.4% in September. Conversely, the general track's range was between a negative 0.2% and a positive 0.6%. Berkovitz attributed the negative returns in the general track to declines in global stock markets and Israeli government and corporate bonds. However, a 2.5% depreciation of the Israeli shekel against the US dollar contributed approximately 0.5% to the overall returns.

The S&P 500 track, despite the index itself experiencing a 0.5% decline in September, yielded a positive return due to a 2.5% strengthening of the US dollar against the shekel. The S&P 500 track saw returns ranging from 1.9% to 2.1%.

Market performance in September was varied both domestically and internationally. In Israel, the TA-35 index rose 1.6% and the TA-125 index increased by 0.5%, while the TA-90 index dropped 2.7%. In the US, the Dow Jones fell 4.3%, the S&P 500 decreased by 0.5%, and the Nasdaq saw a 1.9% gain.

Year-to-date, the stock track leads with an 11.6% return, followed by the S&P 500 track with 7.8%, and the general track with 6.8%. This performance contrasts with the Israeli stock market's TA-35 index rise of 15.8% and the US market's S&P 500 increase of 11.8% over the same period.