The traditional mutual fund industry was hit hard in 2022. The interest rate hikes and market declines (details – at the end of the article) took their toll and the public cashed out tens of billions from the traditional funds and transferred them to the financial funds (the yield there increased due to the increase in interest rates and the advantage that there is only a tax on real profit. That is This is a certain protection against inflation). In December, the public transferred another NIS 4 billion from the traditional funds, alongside an outflow of NIS 1.25 billion from the passive funds (mimetic funds and basket funds) and the financial funds raised NIS 6.85 billion. Since the beginning of the year, the traditional funds have redeemed NIS 26.8 billion, on the other hand – the financial funds have raised NIS 32.7 billion, and the passive industry has raised NIS 4.5 billion.
The industry as a whole lost 9% of its assets, and now manages NIS 363 billion
At the beginning of the year the industry as a whole managed NIS 398 billion, now it manages NIS 363 billion – a 9% decrease. Admittedly, the funds actually register positive fundraisings, and this is thanks to the financial funds that raised 32.7 billion shekels this year. The declines in the stock market are responsible for the overall decline in assets.
This year’s recruiters:
Thus, Analyst manages to register a total fundraising of NIS 8.6 billion, Harel with a fundraising of 3.8 billion, Mor with a fundraising of 3.76 billion, Psagot with a fundraising of 2.45 billion, Meitav with a fundraising of 2.08 billion, Forest with a fundraising of 1.7 billion.
This year’s awards:
On the other hand, the person who lost the most money this year is of course Altshuler with redemptions of NIS 8.67 billion, followed by Ayalon (Hosting) with a decrease of NIS 1.26 billion, Yelin Lapidot (which deals almost exclusively in the management of traditional funds and therefore has no ‘offsetting’ through fundraising in the other areas ) redeemed NIS 1.23 billion.
The loss of funds in the traditional industry:
In the traditional industry, this is a loss of 21%, with the industry now managing NIS 161.6 billion (including hosting) compared to NIS 204 billion.
Almost all financial managers lost money in the traditional industry: Altshuler led with redemptions of NIS 8.6 billion, which is 35% of the assets he had at the beginning of the year and together with the declines in the markets he lost 43% of his assets. Meitav redeemed 15% of its assets (NIS 3.8 billion) and together with the declines lost 22%, Psagot redeemed 18% of its assets (NIS 3.08 billion) and together with the declines lost 26%. Kesem redeemed 21% of its assets (NIS 2.9 billion) and together with the declines lost 28%. Migdal redeemed 11% of its assets (NIS 1.72 billion) and together with the declines lost 19%. Harel redeemed 12% of its assets (NIS 1.58 billion) and together with the declines lost 20%.
On the other hand, Forst Hubil raised funds of 1.7 billion shekels, and two smaller ones – Ilim with funds of 102 million and Mir Fishman with funds of 90 million. 
The difference between the managers is great – thanks to the financial funds:
It’s just that if the money left the traditional industry, that doesn’t mean it was lost, but was deposited in the financial funds that raised NIS 32.7 billion this year.
Analyst raised NIS 9.2 billion, followed by Harel with NIS 7.3 billion, the third is Meitav with NIS 5.1 billion, Psagot with 4.8 billion, Mor with 3.58 billion, Maglad with 1.1 billion. Altshuler raised only NIS 786 million.
The passive industry:
What did the markets in Israel and the world do in 2022?
The year 2022 will be remembered as a difficult year for Wall Street (in Israel the declines were less sharp) when the Nasdaq lost a third of its value (33.5%), the S&P500 fell by 19.7%, and the Dow Jones showed stability with a fall of 8.9%. In Europe The declines were more moderate with the German Dax down 12.4%, the French Cac down 9.8% and the British Potsey closing up slightly by 0.7%. Asian indexes also fell less than in the US, with the Japanese Nikkei down 9.4%, the Sang and Shanghai fell 14.5% each.
And in Israel – TA 35 decreased by 9.2%, TA 125 decreased by 11.8% and TA 90 decreased by 18%. The real estate index fell by 31%, while on the other hand the oil and gas index is the only one with an increase. when it jumped by 35%.
Does this mean that the money goes out and does not return to the traditional mutual funds? Not necessarily. This is a relatively short-term investment instrument, so during periods of decline in the markets, the public exits and returns when the markets rise (this is true not only in this area, but here it stands out). In any case, Ayalon believes that the interest rate increases in the economy are close to being exhausted and estimate that the markets will rise in 2023. If this happens, they hope, the money will begin to flow back into traditional industry (for the full interview – click here)