Israeli Provident Funds See Flat Returns in September Amid Market Volatility
Translated & summarized from Calcalist by baba
Israeli provident funds saw minimal returns of 0.1% in September due to mixed stock market performance and rising bond yields. While August was strong, September's flat results halted momentum, though year-to-date returns remain positive at around 6.84%. Clal leads year-to-date and in three-year performance, while Meitav manages the largest assets. The funds' performance reflects varying exposure to Israeli and US markets.
The story in 6 lines · by baba
- Provident funds in Israel averaged a meager 0.1% return in September.
- September's flat returns followed a strong August, halting market momentum.
- Year-to-date returns for provident funds average approximately 6.84%.
- Clal leads year-to-date and three-year performance among provident funds.
- Meitav manages the largest assets among Israeli provident funds.
- Performance varied based on exposure to Israeli versus US markets.
Provident funds in Israel experienced nearly flat returns in September, mirroring a period of market stagnation. The 11 largest funds in the general track achieved an average return of only 0.1% for the month, with the difference between the top and bottom performers being less than 0.5%. This minimal return is attributed to mixed performance in both Israeli and international stock markets. In Israel, the TA-35 index rose 1.58% and the TA-125 gained 0.47%, while the TA-90 fell 2.73%. In the US, the S&P 500 declined 0.45% and the Dow Jones dropped 4.29%, though the Nasdaq 100 increased by 3.23%. Additionally, rising bond yields, which translate to falling bond values in the funds' portfolios, likely contributed to the low returns.
Gallery Clal and Migdal led the rankings with 0.17% returns each, followed by Menora Mivtachim at 0.1%. These three companies, with greater exposure to the Israeli market, were less affected by the Wall Street downturn. Conversely, Altshuler Shaham finished last with a 0.31% decrease, and Yelin Lapidot fell 0.24%, both investment houses with significant exposure to the US market.
The September results stand in contrast to a much more positive August, when the top ten funds averaged a 1.35% return. While September halted the upward momentum, the year-to-date performance remains positive, with funds averaging approximately 6.84% returns as of the end of September. Clal has led the year-to-date performance with an 8.6% return, followed by More (7.59%), Migdal (7.13%), and Menora Mivtachim (7.1%). Yelin Lapidot is at the bottom with 5.35%, followed by Analyst (6.03%) and Altshuler Shaham (6.12%).
Over the long term, Clal continues to show strong performance, delivering 46.55% over the past three years, the highest in the industry, compared to an average of about 42.32%. Phoenix and Analyst follow with 44.8% each, and Meitav with 44.63%. Harel is at the bottom with 38.62%, and Altshuler Shaham with 39.13%. In terms of asset size, Meitav is the largest fund with 36.4 billion shekels, followed by More (27.75 billion), Altshuler Shaham (25.8 billion), Clal (24.7 billion), and Phoenix (24.6 billion shekels).
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