The year 2022 was the weakest year in the annuity industry for investment, when the volume of assets in it increased by only 3%, compared to a growth of 70% between 2021 and 2022. The sharp slowdown in growth occurs against the background of the negative returns generated by the industry in the past year due to the sharp declines in the markets. On average, the provident funds for investment in the general track decreased by 9%, this compared to the training funds in the same track which decreased by only 7.9% on average. The difference lies in the fact that the investment provident funds invest more in the tradable market, while the training funds also invest in non-tradable assets.
However, in the past year the volume of deposits by savers to the provident funds for investment also decreased and amounted to NIS 5.7 billion – half of the deposits made the year before (NIS 11.3 billion). This is against the background of the negative returns and the increase in interest rates that made the deposit products more attractive.
The provident fund for investment that presented the best return in 2022 in the general route was the provident fund of the Moore Investment House with a negative return of 7.2%. Moore’s fund is also the one that generated the highest return in the last three years — 17.8%. Mor is the fastest growing player in the camel industry, and during the past year he transferred funds to the amount of NIS 21.5 billion – a historical record in the industry. Accordingly, the amount of assets in Mor’s provident fund for investment grew to NIS 3.1 billion, second only to Altshuler Shaham’s provident fund (NIS 5.8 billion), which Mor ousted from the summit as the largest fundraiser. In second place is the provident fund of Clal Insurance with a negative return of 8.2%. In third place is Migdal Insurance’s fund with a negative yield of 8.3%. The pot that produced the highest negative return is that of Altshuler Shaham (12%).
The route of shares in the investment provident funds yielded, as expected, deeper negative returns. In this route, the average negative return was 15.5%. This is against the background of a 19.4% drop in the Tel Aviv-125 index in 2022 and a 19.4% drop in the American S&P 500 index. In the stock track, the outstanding fund is that of Menorah-Mvathim, which only fell by 8.2%. Also in this track, Altshuler Shaham’s fund yielded the The highest negative return – 19.1%. In a three-year period in the share track, Mor leads (30.8%) and in last place is Altshuler Shaham with a negative return of 0.6%.