Israeli Provident Funds Show Mixed September Returns

September proved to be a mixed month for Israeli provident fund savers, with general track funds expected to yield around zero and equity track funds approximately 0.5%. In the general track, where most savings are held, Clal and Migdal led with returns of about 0.18%, followed by Harel at 0.13% and Menora Mivtachim at 0.11%. Altshuler Shacham was at the bottom with a negative return of 0.24%. The performance differences were largely attributed to asset allocation and hedging strategies, with funds holding more local government bonds or small-to-mid-cap stocks experiencing declines, while those with unhedged foreign exposure benefited from the shekel's depreciation. Since the start of 2026, Clal leads the general track with 8.6%, and over the past 12 months, Clal also leads with 13.2%.

In the equity track, Harel led with 0.84%, followed by Analyst at 0.74% and Altshuler Shacham at 0.53%. All ten institutions were expected to finish the month with positive returns. Over the long term, Clal also leads the equity track, with a 14.1% return year-to-date and 21.9% over the last 12 months. Analyst showed a notable divergence, ranking second in equities while posting a negative return in the general track.

Looking at three-year performance, Clal leads the general track with a cumulative return of 43.7%, while Migdal leads the equity track with 76.1%. The article notes that provident fund returns do not directly mirror stock market indices like the Tel Aviv 35 or Nasdaq, due to diversification across various assets including bonds and international holdings, as well as currency fluctuations. Investors considering changing funds are advised to examine management fees, the appropriateness of the fund's track for their savings horizon, and the fund's liquidity terms after six years, or three for specific study purposes.