After the sharp recovery in the performance of the training and pension funds in July, which led the investment house Altshuler Shaham At the top of the returns table in July, came the month of August with a disappointing turnaround in terms of its performance. That month, fear returned to the markets and especially the interest rate hikes by the central banks. The steps taken by the American governor Jerome Powell in the USA, and also the Governor of the Bank of Israel Prof. Amir Yaron Last month, they led to a significant erosion in the performance of the solid channels, which together with the return of fears to the stock market, caused negative performance in long-term savings.
In August’s summary, the pension funds in their flagship route, “up to the age of 50”, achieved an average negative return of 0.63%, while since the beginning of the year the members’ funds in the funds in the route in question have eroded by 3.64%. The training funds recorded an average decrease of 1.1% last month in the general route (the common route among those saving in the training funds). Since the beginning of the year, the money of savers in this route has decreased by 5.5%.
At the top of the yield table among the pension funds in the track up to the age of 50, the flagship track of the pension funds, is the phoenix which closed the month with a return that is actually a balance compared to the previous month, with only a slight decrease (0.01%). After her is a company Clal Insurance which registered a negative return of 0.31%, and in third place is the insurance company Ayalon (which belongs toThe best) with a negative return of 0.51%.
The bottom of the table in the field of pensions is closed by the investment house Altshuler Shaham, which recorded a decrease of 1.49% in the route up to the age of 50 in the pension funds in August. Altshuler Shaham is also at the top of the negative performance since the beginning of 2022, after showing a decrease of 7.93%.
After him at the bottom is a company Harel With a negative return of 0.93%, with the insurance company one place above it tower with a negative yield of 0.59% and above it Menorah Mivatim with 0.57%.
Starring since the beginning of the year Clal Insurance in the pension field. The negative yield it presented (2.31%) was moderate in this channel compared to its competitors, followed by the top – Phoenix which presented a decrease of 2.39% and Menorah Mivathim with a decrease of 2.46%. At the bottom of the table among pension savings from the beginning of 2022, after Altshuler Shaham, is Ayalon Meitav which recorded a negative return of 4.45% since the beginning of the year, and above it in third place (the worst) is Migdal with 3.22%.
Negative yield despite a 3.4% increase in Tel Aviv 35
The negative returns in pension savings were recorded even though the leading share index of shares on the Tel Aviv Stock Exchange, Tel Aviv 35, rose by 3.4% in August. It seems that the declines in the solid channels were one of the factors that damaged long-term savings. The reason in Israel was a sharp and surprising increase in interest rates by a bank Israel (on August 22). Governor Yaron raised it in August by 0.75% to a level of 2%. At the upper limit of the forecasts, and a hawkish decision designed to deal with inflation and on the other hand with a similar rate hike path as taken by the Federal Bank in the USA.
This step led to weak performance in the solid sectors, when index Purpose of Tel Bond 20 basket , which includes the twenty bonds with the largest value on the stock exchange, recorded a negative return of 1.5% in August. The government bond indices also recorded negative returns. The Israeli government’s linked bonds (Tel Gov-Tzmodut) fell in the same month by 1.9% and the non-linked bond index fell by 1.9%.
Unprofitable funds: a 5.5% decrease since the beginning of the year
The negative trends that eroded the pension hit the training funds more acutely. Altshuler Shachem recorded the most negative return in the general route (common among those saving in training funds) in August – 1.58%, followed by Harel Company – 1.34%, Vilin Lapidot with 1.29%. At the top of the table, still with negative returns, is Analyst with 0.53%, followed by Excellence of the Phoenix with 0.65%, and in third place Moore with a decrease of 0.89%.
Since the beginning of the year, Altshuler Shaham recorded a decrease of 8.62% in the general course, the sharpest. After her at the bottom Yelin Lapidot with 6.21%, and in third place best with 5.71%. The best performance on this track was achieved by analyst With a decrease of 4.37% in the first eight months of the year, Mor with a decrease of 4.4%, followed by Clal Insurance (4.49%).
The training funds in the equity route resulted in an average decrease of 10.9% for savers from the beginning of 2022. At the top of this channel is Clal Insurance with a decrease of only 9.16%, followed by Harel (9.75%) and Excellence of the Phoenix (9.83%). At the bottom again – Altshuler Shaham with a decrease of 15.2%, and in the second worst place analyst (12.43%) Willin Lapidot with 11.17%.