The performance of the large public companies that benefited from our pension funds in 2022 (photo: Walla! system, without)
Unlike our children, who competed with each other on the eve of Passover, to find the afikoman, hoping that we would open the pocket or at least win them a gift.
There are some Israeli companies that get free access to our pocket and enjoy our money throughout the year.
Thanks to Perpetual Afikoman: Managing our pension funds.
The examination of the large institutional bodies that manage our pension funds reveals that their attention was focused in 2022 mainly on the yielding real estate stocks and sectors such as finance and chemicals, two sectors led by 6 companies: ICL (formerly Israel Chemicals), the banks - Leumi, Mizrahi Tefahot and Poaleim, The Azrieli malls and real estate group, and Canon Holdings, which is controlled by Idan Ofer (60.3%) through the Dutch company Ansonia.
While the other 541 companies listed for trading on the Tel Aviv Stock Exchange are struggling to win the attention of the institutions, data from the Smartball company (which developed systems for analyzing investments of institutional entities) show that the aggregate amount of transactions made by the latter in the 6 companies in the attached table was about 9.2 billion Shekel in 2022.
The bull of Wall Street.
When will he return to running - and together with him we will see continuous increases in the capital markets in the world, including in Tel Aviv? (Photo: ShutterStock)
Who benefits: the buyer or the seller?
But despite the high transaction amount, the data also show that the attention each of the companies received depends on the investment mix of each of the large pension funds, and this was not always positive.
Smartball company data divided the institutional investments in the ICL company, which received the highest transaction amount of them - about NIS 2.1 billion for 2022, and showed that while the Altshuler Shaham investment house, for example, invested about NIS 507.5 million in the stock during 2022, the Phoenix insurance company sold the The company's shares are approximately NIS 555 million.
On the other hand, Bank Leumi's share showed high purchases from the Mor and Altshuler Shaham investment houses in the amount of NIS 372.4 million and NIS 323 million, respectively, alongside sales of NIS 96 million and NIS 98 million from the Amit Fund and the Harel Insurance Company, respectively.
It is evident that the Altshuler Shaham investment house especially believes in the companies under the control of Idan Ofer, with a notable investment of approximately NIS 671 million during 2022 in the stock of Cannon Holdings, which is traded on the Tel Aviv and New York Stock Exchanges worth approximately NIS 6 billion and owns OPC Energy, which is traded in the Tel Aviv Stock Exchange with a value of approximately NIS 6.3 billion and in the Zim Shipping Company.
The Phoenix Insurance Company, in contrast to Altshuler, sold shares of Canon for close to NIS 196 million, and alongside it, the Harel Insurance Company also sold shares of the company for an amount close to NIS 155 million.
Since it is all of our pension funds, the question arises whether the institutional focus on the six stocks described was worthwhile?
To examine this, the buying and selling prices of those shares must be checked, which is not always reported, but a more general examination shows that in the period examined, the viability was on the side of the sellers, more than among the buyers.
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In any case, as there is nothing to gloat about profits in the pension fund, there is no need to mourn losses - it is recommended to examine the performance over the years, since the managed money will only be met at retirement age (Photo: ShutterStock)
How long will the interest rate continue to have an effect?
Thus, for example, the Azrieli Group's share decreased by about 21% during the year 2022, followed immediately by the share of Bank Leumi, which showed a decrease of about 10.5% for the same period, and the ICL share with a 7.68% decrease in the previous year.
The decline characterizes all traded companies and all stock exchanges around the world for that period, in the shadow of interest rate increases and the fear of a recession, alongside investment alternatives that have become more viable in times of rising interest rates such as bonds. The big questions that will affect the navigation of our pension funds this year (2023)
, How long will interest rates continue to affect the global economy after what appears to be a halt to its sharp rise, will the world enter a recession, and if so, what kind of recession? Investment managers don't have magic solutions either. If they gamble correctly, we
will all win a bigger pension fund, but we have to remember Because managing a pension fund is a long-term game, and you should examine the fund you are in against its competitors based on its performance over the years.
In other words: the losses or gains in a process that lasts for many years are on paper: as long as the fluctuations are in a few percentages (that is, without a collapse or a dramatic jump), we will get an answer to the billions question only when we meet the money - usually at retirement age.
And what's more: it's worth remembering that while we'll make a profit or lose, it's likely that those who manage the finances for us, will make a profit in any situation.
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pension
institutional
Pension savings
