How much money did the public spend from mutual funds in Israel in February? 5.4 billion shekels, of which 1 billion were spent by the institutions, and another 4.4 billion shekels were spent by the private investors, according to an analysis by Zvi Stepak, founder and owner of the Meitav Investment House, who examined the changes from the beginning of February to the 22nd of the month.
According to the data, the public redeemed 1 billion shekels from equity mutual funds that specialize in Israel (about 600 million from the active industry and another 400 million from the passive industry), and another 3.4 billion shekels from government or corporate bond funds (corporate). At the same time, the institutions spent another 550 million NIS from Israeli equity funds and another NIS 450 million from bond funds.
And where did the money go? 60% of the private investors’ money that came out of the funds in Israel went abroad
According to the analysis, the public transferred NIS 700 million to invest in equity funds abroad and another NIS 700 million to bond funds abroad (foreign exchange) and in total 31% of the private investors’ money went abroad. At the same time – another NIS 1.2 billion moved to the dollar financial funds, and this alongside the entry of NIS 2.4 billion into the shekel financial funds, which have been enjoying good fundraising for six months and in total have accumulated more than NIS 30 billion so far in the last year, although at best it is noted that “in recent days there has been a noticeable slowdown” in the money entering the funds the shekels
The institutional investors diverted a more significant part of their money abroad, with NIS 350 million going to equity funds abroad and another NIS 120 million to overseas bond funds (or 47% of all the money that the institutional investors moved abroad). At best it is noted that institutional investors , as a rule, rarely operate in the field of bond funds abroad and “their holdings in it are very low except for corporate bonds”. At best, there are a few reservations about the data of the institutional bodies because most of their activity is not done through Israeli hedge funds but directly – in the purchase and sale of stocks and bonds in Israel and abroad and through hedge funds that exist abroad.
According to Zvi Stepak, founder and CEO of Meitav Investment House: reducing the amount that the public invests in Israeli bonds by NIS 3.4 billion in one month is a “huge amount”.
He adds that “it is not clear at this stage what amount Israeli companies and Israelis as individuals have transferred abroad. In this matter, various amounts are thrown into the air. What is clear is what is the mindset of the private investors and the institutional investors by examining the movements of funds in the mutual fund industry which provides us with daily data in this regard. There is nothing like the mutual fund industry, whose data is transparent and daily, to reflect the mindset of the investing public and its conduct in the capital markets. The trends are clear: selling shares in Israel, buying shares abroad, selling Israeli bonds, buying bonds abroad, And flock to foreign exchange – dollar financial funds”
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