December marks a dream year for the study funds with an average annual return of 14.41% for the whole of 2021, and an average monthly return of 1.83% for the concluding month of the year.
On an annual basis, this is almost three times higher than the average return in 2020, which stood at 5.3%, and even higher than the previous peak year of pre-Corona study funds in 2019, when the average return was 12.3%.
Leading the table of study returns for the last month of the year is the Phoenix Insurance Company, with a return of 2.21% in the concluding month of the year. Yehuda Indig, Director of Pension and Provident Investment at Phoenix: “December was characterized by volatility, but ended with price increases, which stood out in the domestic market compared to the rest of the world.
The main factor that contributed to the Phoenix results is exposure to the performance of the local capital market, and as part of this, relatively high exposure to competitors in the communications and real estate sector.
The TA 125 index, for example, rose by 5.2%, and the TA 35 index stood out, with an increase of 6.12%. The sectors that led the stock market rises were real estate, which rose by 9.17%; oil and gas, which rose by 8.69%; and banks, which rose by 6.26%.
The source of the increases experienced by the domestic market was, among other things, the publication of the possibility that Israel would be included in the MSCI index for Europe, along with the intended bond reform. This is due to the expectation that both will lead to the entry of large sums of money into the local market.
The major US indices, on the other hand, were weaker. The NASDAQ index ended up 1.14%, as of December, and the S & P500 rose 4.36%. The trend that stood out in the United States was the reduction of the balance sheet by the central bank, which led to a rise in government bond yields, a rise in the real interest rate and a fall in inflation expectations.
The U.S. sectors of health, infrastructure, and real estate, which are relatively defensive, rose by about 9 percent, and relatively low exposure to U.S. technology stocks relative to competitors also contributed to performance in Phoenix.
Like Israel, Europe, which is more exposed to value stocks, stood out, with the German DAX up 5.2% and the French CAC up 6.43%. However, the Chinese stock market continued to perform poorly relative to global stock indices, as we also saw during the year. “
The Phoenix return in December led the insurance company to a cumulative return of 45.84% for a period of five years – 0.04% less than the leader of the undisputed training table for this period: Altshuler Shaham Investment House.
The latter ended December in last place with a yield of 1.48%, but continues to lead the yield table for five years, with a yield of 45.88%.
Also approaching the Phoenix and Altshuler in the long-term return is the investment house analyst, with a return of 44.71% for a period of five years, which sealed the entire 2021 with a return of 15.65% and led the table of full-year study returns.
Noam Rokach, VP of Investments at Analyst Investment House: “2021 was a year of emerging from the recession and moving to rapid global growth of about 6%, and this is evident in industry, services and private consumption. “This was reflected in the stock channel due to the economic recovery and the zero interest rate environment. Thus, the S & P500 rose by 26.9%, the Nasdaq by 21.1%, and in the domestic market the TA 125 rose by 31.1%.
“In the domestic bond market, the government bond index rose by 2.3%, but government-linked bonds peaked at 7.4% due to rising inflation expectations, while shekel bonds fell by 1%. Corporate bonds rose by 7.4% last year and benefited from the improvement in the economic environment and the fact that some of them were index-linked.
“What helped the analyst in 2021 as a whole was overall exposure to top-tier equities stocks, overweight in the U.S. market and lacking in Europe and Asia, overweight in the real estate and banking sectors – which more than doubled the overall index due to the economic recovery and alongside energy companies From the crisis.
Noam Rokach, VP of Investment Analyst (Photo: Yachz)“2021 is a record year for returns on public savings, and in fact it is the best year since 2009. Such returns can be achieved, for the most part, in the years following the exit from major crises.
“It is estimated that the year 2022 will be characterized by global growth, although more moderate than that of 2021, and interest rate hikes in the United States, and perhaps even a minor one in Israel. “Stock prices and the narrow monetary policy will challenge the markets this year, and in any case, returns should not be expected as they were last year.”
Indig adds: “Inflation is expected to moderate from its current level in the second half of 2022, mainly due to the supply chain and raw material prices, and we will see a monetary contraction by central banks, particularly in the US. .
Continuing education funds December 2021 (Photo: without credit)A study fund is a medium-term savings product. For many self-employed people this is a way to earn not only adequate returns on the fund (if the fund earns of course, and as the data shows, over the years it earns excellently), but also a substantial tax benefit. The fact that the provision for funds is recognized in tax even when they become liquid has made them one of the attractive products offered by investment houses.
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