Clal Leads Israeli Provident Funds Despite July Declines Amid Dollar Strength

Israeli provident funds experienced declines in July, with the general track falling by an average of 0.48% and the equity track losing 1.01%. The strengthening of the US dollar by approximately 3.2% against the shekel helped mitigate losses for funds with significant overseas investments. Despite the monthly dollar gain, it remains down about 3.7% since the start of the year. Clal continues to lead year-to-date performance in both tracks, while Harel finished last in July in both categories. Altshuler Shaham, benefiting from its high foreign exposure and the dollar's rise, led the equity track in July with a relatively small loss of 0.28%, marking its second consecutive month outperforming peers in this segment.

In the general track, Yelin Lapidot posted the smallest decline in July at just 0.01%, though it remains near the bottom in year-to-date returns with 4.23%. Clal leads the general track year-to-date with a 6.82% return, followed by Mor and Harel. Over three years, Analyst leads with a cumulative 42.07% return, while Altshuler Shaham ranks lowest at 34.44%. In the equity track, Clal holds the top year-to-date position with an 11.26% return, followed by Mor and Harel, with Altshuler Shaham last at 6.71%. Over three years, Infinity leads with 72.42%, and Altshuler Shaham is again last at 57.42%.

Local stock indices showed mixed results in July, with TA-35 rising 0.7% and TA-90 falling 0.8%. US markets declined, with the Nasdaq dropping 4.2%. Bond markets offered little support, with government bond indices mostly flat or slightly down. The dollar's appreciation cushioned losses for Israeli savers investing abroad, improving shekel-based returns compared to dollar-based indices. The reported returns exclude the last trading day of July, which will be included in August's figures. Overall, the data highlights the impact of currency fluctuations and investment composition on fund performance amid volatile markets.