Summary of 2021 returns in funds and provident funds: Managers have not beaten the indices

by time news

The year 2021 will be remembered as a bull year in the world stock markets: in the US, the 500 S&P index rose by 27%, the Dow Jones rose by 18.7% and the Nasdaq rose by 21.4%.
The German DAX index rose by 16%, the French CAC rose by 29% and the Eurostoxx 50 rose by 21%.
Only in Asia were the increases relatively weak, while in Japan the Nikkei index rose by only 4.9%.

In Israel, the increases were stronger than in the world: The Tel Aviv 35 Index rose by 32%, the Tel Aviv 90 Index rose by 33.1%, the Tel Aviv 125 Index rose by 31.1% and the Over 60 Index rose by 29.7%.

The result is of course also a success for the governing bodies, although despite the fruitful year – they have not been able to beat the indices, even in the equity track.

The big changes this year: NIS 100 billion has passed
If at the beginning of the year there were 13 CFOs in the field of study funds then at the end of the year there are 10 entities. A total of NIS 100 billion belonging to about 2 million savers passed between the fund managers this year. Order made:
Altushler Shaham acquired Psagot, Kept the study funds for himself, sold the brokerage business to Rani Zim’s Value Capital and the pension was sold to Harel.
The Phoenix merged Hellman Aldubi, And the pension has moved to the best lapel.
The insurance company Vishur (weSure) acquired the insurance company Ayalon.
Harel merges Shirbit into it.

The study funds in the equity track in 2021 yielded an average return of 24%.
In the last 3 years, the return on the equity track has been about 65% and 80% on average in the last 5 years. Definitely impressive returns indicating that in the longer term the returns compensate for the risk and the investors benefit from it.
>>> For performance and rating of equity training funds

Who are the leaders?
The best managers in recent years in the general track are:

Meitav Dash, Analyst, Phoenix and Clal with a fairly similar return of about 36.5% for 3 years. Altshuler Shaham is still ranked first in yield for 5 years (but the gap from the following has been completely erased). Within 3 years it is already below average, and is the biggest disappointment in yields in 2021.

The best executives in recent years in the stock track are:
The analyst leads the unquestionable returns at the top, and continues to lead this year as well. Alongside him also leads Yellin Lapidot. Phoenix Excellence are also at the top.
Here, too, Altshuler Shaham is disappointing this year and is at the bottom.

The best managers in recent years in investment provident funds are:
Here, too, an analyst is in first place. In second place is Phoenix Excellence and in third place Harel is surprisingly good – after being the biggest winner in the field in 2021.

The biggest disappointments of the field in recent years:
Those who lock the table in ranges of 3 and 5 years are Menorah Mivtachim at the bottom and above it, Harel and Migdal. Menorah may not be down this year but that’s only because of Altshuler Shaham’s bad returns this year.
This is also true for the stock track track. In the investment provident funds the results are the same, except for Harel which this year transferred the management of the investment provident funds to another internal manager and since then the results indicate a trend of change and it is the first this year and even at the top of the table within 3 years.

The vast majority of funds are on the general track – but the stock gives an excess return in the longer term
The study fund market manages about NIS 340 billion, constitutes more than half of the entire provident fund market and is the fastest growing category in provident funds (including the savings-investment industry in general). The growth in the market is mainly due to the benefits inherent in study funds. The leading investment category in study funds is general funds (approximately 75% of the financial volume). Equity funds make up only about 12-15% of the market.

It is worth noting, despite the falls of the corona, and despite the declines in 2018, the stock track has given in these years (and this is also true in the past) a return of twice the overall track. So it is true that it is impossible to know the future, but if you save for the long term – and do not need the money for the next ten or more years, the stock track will probably compensate for the risk and the declines and falls in the markets to come – just remember not to panic when the declines come and not sell the savings .

So with whom to put the money?
The truth is that it is probably less important, especially what is important is to save, and as much as possible. The conclusion from the fact that in almost every period those who lead are other entities is again this: it is difficult to impossible to know in advance which manager will achieve a better return, so in addition to returns it is equally important to check management fees and lower them as much as possible. The management fee can be known in advance and negotiated.

However, the entities that meanwhile manage to better manage the money in the investment provident funds are Analyst, Yellin Lapidot and Excellence of the Phoenix.


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