Israeli Pension Funds See Near-Zero Returns in September, S&P 500 Track Soars

Preliminary data from investment house Meitav reveals that Israeli provident funds, study funds, and pension funds experienced virtually no returns in September. The primary exception was a specific S&P 500 track, which yielded a remarkable 2% return for the month. This strong performance is attributed to a combination of the strengthening US dollar and positive trends on Wall Street, drawing attention from investors globally.

The general track, holding the majority of public funds, saw a negative return of 0.1% in September. The equity track, which has been popular in recent years, posted a modest positive return of 0.2%. Pension funds, on average, achieved positive returns ranging from 0.2% to 0.4%.

Globally, September saw declines in most stock markets and drops in Israeli government and corporate bonds, contributing to the negative returns in the general tracks. However, the depreciation of the Israeli shekel against the dollar by 2.5% added approximately 0.5% to overall returns.

Domestically, the Tel Aviv stock market showed mixed performance: the TA-35 index rose 1.6%, the TA-125 gained 0.5%, the TA-90 fell 2.7%, and the TA-60 remained unchanged. In the US, the Dow Jones dropped 4.3%, the S&P 500 decreased by 0.5%, while the Nasdaq climbed 1.9%. European markets experienced downturns, with the German DAX down 4.0%, the French CAC down 4.4%, and the Eurostoxx 50 down 2.4%. Japan's Nikkei rose 0.7%, and the global emerging markets index fell 1%.