Israeli Provident Funds Show Mixed September Returns; Top Performers Vary by Track
Translated & summarized from N12 by baba
Israeli provident funds saw mixed returns in September, with the general track near zero and the stock track around 0.5%. Clal and Migdal led the general track, while Harel topped the stock track. Long-term performance shows Clal leading in both tracks over various periods. Savers are advised to consider management fees and choose tracks based on their savings horizon.
The story in 5 lines · by baba
- Provident funds yielded near-zero returns in the general track and 0.5% in the stock track in September.
- Clal and Migdal led the general track in September, while Harel led the stock track.
- Clal leads year-to-date and 12-month returns in both general and stock tracks.
- Three-year returns show Clal leading the general track and More leading the stock track.
- Management fees and savings horizon are key factors when choosing a provident fund track.
September proved to be a mixed month for Israeli provident fund savers, with the general track expected to yield near-zero returns and the stock track around half a percent. In the general track, where most savings are held, companies like Clal and Migdal led with returns of approximately 0.18%, followed by Harel at 0.13% and Menora Mivtachim at 0.11%. Altshuler Shaham was at the bottom with a negative 0.24% return. The narrow gap between the top and bottom performers in this track, about 0.4 percentage points, is significantly smaller than in August and is attributed to differences in asset composition and hedging strategies, with exposure to local government bonds and small-to-mid-cap stocks impacting returns negatively, while unhedged foreign investments benefited from a weakening shekel.
In the stock track, all ten institutions are expected to finish with positive returns. Harel led with 0.84%, followed by Analyst at 0.74% and Altshuler Shaham at 0.53%. Clal, Migdal, and Phoenix each posted around 0.5%, with Yelin Lapidot at the bottom with 0.07%. Analyst showed a notable divergence, ranking second in stocks while experiencing a negative return in the general track.
Looking at longer-term performance, Clal leads the general track year-to-date with 8.6% and over the past 12 months with 13.2%. In the stock track, Clal also leads year-to-date with 14.1% and over the past 12 months with 21.9%. Over a three-year period, Clal leads the general track with a cumulative 43.7% return, while More leads the stock track with 76.1%. The article notes that September's figures are estimates and final yields will be published later in the month.
Experts advise savers to consider management fees, which are not deducted from the reported returns and can significantly impact long-term savings. Switching between tracks within the same fund is possible without tax implications and should be based on savings horizons, not just short-term performance. The liquidity of provident fund money, available for any purpose after six years or for study purposes after three years under certain conditions, is also highlighted.
Mentioned
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Only N12 so far.
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
