2023-06-23 00:01:56
Baltschuller Shechem, the largest investment house in Israel, managed to reduce in recent months the short returns they had accumulated for more than a year in front of their competitors. However, precisely because it seems that the investment house has caught on, and that the stock exchanges in the USA are beating the stock exchange in Israel, it once again finished the last month at the bottom of the table.
● The pension route that yielded a return of 30% since the beginning of the year and the numbers behind the unusual gaps in the training funds
● In May, two training funds surpassed all others by a margin. And who is at the bottom of the yield table?
Altshuler Shaham ended the month of May in last place among the large companies in the general track of continuing education funds (return of 0.4% compared to an average of 0.9%), and almost last among the new pension funds in the track for those aged 50 and under (0.5% compared to an average of 0.8%). In the equity track of the training funds, the investment house presented a return of 0.1% compared to an average of 0.5% in the industry.
Immediately after the publication of the returns for the month of May, Globes learned, the investment house commented on the results and explained the change in the trend for the worse: “The month of May was an exception in the field of technology with an emphasis on chip stocks. As a result of the buzz surrounding the issue of AI (artificial intelligence), investors withdrew funds from sectors defensive and conservative and put them in technology stocks,” explained Baltschuler Shaham. “This created sharp declines in the sectors we are exposed to (energy, banks, pharma – by the way, sectors that have been recovering strongly since the beginning of June, so originally), and on the other hand sharp increases in the sectors we are also in, but probably less than others.”
Another reason cited by the investment house, which led to the shortfall, was on the issue of bonds, that as we wrote in Globes in recent weeks, many investment houses have already begun to extend their MHA (average life span), because the expectation is that the interest rate environment will remain high for a long time. “Corporate + government bonds of Israel in a long MHA worked well and since we are not in this position we did not profit from the increase”, noted Altshuler Shaham.
Baltshuler Shachem, who are still in first place among the large bodies in terms of returns since the beginning of the year in the pension tracks in the three main tracks – up to the age of 50, for those aged 50-60 and those aged 60 and over, explained that their current position is a defensive portfolio that reflects an economic slowdown and recession. “We do not anticipate a drop in interest rates in the coming months, when central banks in Europe and Australia continue to raise interest rates,” they noted. As for the general trajectory of the investment house, it is currently about 42% exposure to tradable shares and 6% alternative investments, with the allocation being 76% abroad and 24% in Israel. Altshuler Shaham’s exposure to foreign exchange is about 23% .
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