The provident funds and large general study funds will show a positive nominal (gross) nominal return of 0.7% in March 2022, according to the forecast of Meitav Dash Investment House. According to Meitav Dash, this return also represents the picture in the entire industry, with the yield range of all the funds being expected to range from a return of 0.4% to a return of 1.1%. The equity tracks in the provident funds achieved an average return of 0.9%. This makes March the first month since 2022 that the provident fund and pension fund industry achieves a positive average return.
The reason for the positive returns is price increases that were recorded in March in the stock markets in the country and in corporate bonds in the country, and these acted as a positive factor in the fund returns.
According to Avi Berkovich’s forecast, Deputy Chief Investment Officer at Meitav Dash Provident and Pension, the pension funds’ tracks for young savers, aged 50 and under, achieved an average return of 1.1% while the tracks for 50- to 60-year-olds achieved an average return of 0.9%.
The stock market in Israel recorded adequate price increases: the Tel Aviv 35 Index rose by 2.4%, the Tel Aviv 125 Index rose by 2.1%, the Tel Aviv 90 Index rose by 1.3%, and the Over 60 Index rose by about 2.0% %.
There has been a mixed trend in the global stock markets over the past month. In the US, the main indices achieved adequate price increases with the Dow Jones index rising by 2.3%, the S & P500 index rising by 3.6% and the Nasdaq index rising by 3.4%.
In contrast, in Europe, where the Russia-Ukraine war is taking place, there have been slight declines in exchange rates. The German DAX was down 0.3%, the French CAC remained unchanged and the Eurostoxx 50 was down 0.6%.
The local corporate bond showed a positive trend. The Tel Bond 20 index, the Tel Bond 40 index and the Tel Bond 60 index rose by 0.3%, 0.2% and 0.2%, respectively. The unrated bonds rose by 0.3%. The bond index A general concern remains unchanged.
The government bonds index fell by 0.4%, while index-linked bonds rose by 0.6%, while shekel bonds fell by 1.2%.
The first quarter ended with negative returns
This is the first month of a positive return since the beginning of 2022. In the summary of the first quarter, the general tracks in the provident funds showed a negative return of 1.5% and in the equity tracks a negative return of 3.3%. In the pension funds, the tracks for those aged 50 and under showed a negative return of 0.7% and the track for those aged 50 to 60 ended the quarter with a negative return of 0.4%.
This is because the world stock markets have shown a strong negative trend since the beginning of the year. In the US, there were strong price declines, with the 500 S&P index down 4.9%, the Dow Jones index down 4.6% and the Nasdaq index, the technology stock index, down 9.1%.
There was also a negative and stronger trend in Europe: the German DAX index fell by 9.3%, the French CAC fell by 6.9% and the Eurostoxx 50 fell by 9.2%.
On the other hand, the stock market in Israel recorded a positive trend in most indices: the Tel Aviv 35 Index rose by 2.2%, the Tel Aviv 90 Index rose by 2.3%, the Tel Aviv 125 Index rose by 2.0% and the Over 60 Index fell by Sharp of 4.1%.
Corporate bonds recorded a negative trend: the entire corporate bond index fell by 2.3%. The government bond index has fallen by 4.3% since the beginning of the year.