Provident funds and solid training funds ended February, amid the war in Ukraine, with average negative returns of 0.7%. This emerges from the investments of the investment house Meitav Dash Provident and Pension. This expected return also represents the picture in the industry as a whole.
The yield range of all the funds should range from a negative return of 0.3% in the solid funds and a negative return of 1.2% in the equity funds. The rises in recent days have saved investors another erosion of more than 1% in yields.
Recall that in January, negative returns of 1.8% were recorded, so that in the first two months of 2022, yields fell by a cumulative rate of 2.5%. Also, in 2021 as a whole, yields on provident funds rose by more than 14%.
In February, price declines were recorded in all major investment channels: in the world stock markets, in corporate and government bonds in Israel, and these acted as a negative factor in the fund’s returns. The Dow Jones Industrial Average was down 3.5%, the S&P was down 3.1% and the Nasdaq was down 3.4%.
There was a mixed trend in the stock market in Israel: the Tel Aviv 35 Index rose by 2.9%, the Tel Aviv 125 Index rose by 1.3%, the Tel Aviv 90 Index fell by 2.1%, and the Over 60 Index fell by 4.7%. The corporate H. has recorded a negative trend. Government bonds fell by 2.1% – double the decline in corporate bonds.