The yields in the camel and training in 2019: Who are the bodies that starred at the top, and who is the only channel to lose?

A huge aggregate of about NIS 1.32 trillion of public money was managed in 2019 by provident funds, continuing education funds, new comprehensive pension funds and pension savings policies. Training funds continued to accelerate growth, and the camel market enjoyed a revival after years of dehydration

At the end of 2019, provident funds, training funds, comprehensive new pension funds and pension savings investments, invested in the capital market, managed an aggregate amount of NIS 1.32 trillion. This is a huge amount, which should provide the "real" social security cushion for the Israeli public - especially for retirement, and beyond the low allowances paid by the National Insurance Institute.

These amounts are included in what is known as the "accumulating pension", under which the public secretes monthly savings money earned for it, and which receives a variety of tax benefits. The name in question betrays the most important feature of this savings - the accrual - and is aimed at the saver depositing money from time to time, in the future receiving a monthly allowance or lump sum, which will be deducted from the amount he accrues. The same amount that will accumulate is a schema of the deposits and the return achieved for them over the years, and therefore the returns achieved by management bodies are of immense importance to the saver.

In this respect, 2019 ended with unusually high rate hikes in a number of capital market indices in Israel and around the world, so at the end of the year it became clear that 2019 was a direct continuation for most of the preceding years, and also a mirror image for 2018, which ended in price falls. This is a positive contribution to the social accumulation of the public by long-term savings bodies.

The returns promise nothing for the future

However, the good positive industry return represents the industry average, with in 2019 there were several companies that went well beyond the average, in many avenues and continuing education, of which there are some notable winners who dominate the top rankings: investment houses Altshuler Shaham (who also won most ratings in the new pension market) ), Both analyst and Yellin Lapidot, who share the lead in a long line of different fund types and age groups. Alongside this are also outstanding funds and funds of Excellence-Phoenix and Clal Insurance.

However, the past return indicates the quality of investment management of the various executive bodies in the past, and it does not guarantee anything about the future. Looking at this, what matters is the allocation of each body and body (that is, the allocation of resources to the various channels and investment areas), and what will develop in the capital markets down the road.

Either way, in early 2020, provident funds, training funds, comprehensive new pension funds, and insurance companies for the general public hold NIS 101.5 billion in cash, cash equivalents and deposits (about 9.7% of the total portfolio), while holding in equities and mutual funds amounts to about NIS 361.4 billion (about 27.4% of the portfolio). At the same time, approximately 24.4% of the aforementioned aggregate portfolio, approximately NIS 321.6 billion, is invested in debt of business corporations - through negotiable and non-negotiable bonds and through private loans (similar to bank credit).

The hegemony has shifted from summits to alchohol Shaham

As of the end of 2019, the camel market and the education market totaled NIS 533 billion, having experienced a real upturn in recent years. This is due to the accelerated growth in the training fund, thanks to the provident market for rewards in recent years, after years of dehydration, and also to the addition of two new types of monthly provident funds that grow monthly: investment provident funds, similar to individual savings policies sold by insurance companies, And the provident funds for saving every child and girl who enjoy a regular state payment.

Not only that, in recent years the camel market and training have undergone huge structural changes, in which market hegemony has moved from one body (peaks) to another (Altshuler Shaham), with other bodies at the expense of others (such as Yellin Lapidot) or threatening to retrench against good results recently recorded and activities Others (like Moore). This is the culmination of a structural change, which began in the middle of the last decade. Until then, the banking and training market has been controlled by the banking system, and since its control, hands have been distributed among insurance groups and investment houses, with the latter taking a growing share.

The growth and changes in this market happen because of two main things: proper activity with the distributors (especially the insurance agents) and good returns over time. In fact, the consistent success of the provident fund and training fund returns reached the Tel Aviv Stock Exchange last year, with investors demonstrating on several occasions the importance of investment management's reputation for the value of the companies operating in the field, in light of expectations of good returns in the future.

What do we mean? In 2019, Altshuler Shaham provident and pension shares were issued to the public when the company did not stop - and its investors give it a value that so far has only been accepted by the large insurance groups. Alongside it are also the shares of Moore House Investments, which entered last year into the provident fund and training fund management field, after very successful years in mutual fund management, as well as Atrau shares - which holds half of the Yelin Lapidot investment house, which is also successful.

Opening a positive year for investment house shares

Let's start with the latter: Yellin Lapidot has been one of the market leaders consistently, with excellence in returns, and this is reflected in the past year in the Atrau stock, which has jumped 146% over the past 12 months. Also the Altshuler Shaham Provident and Pension share, which did open the current year with a relatively solid right foot (with "only" an 18% increase from early 2020), but also completed a 95% jump since it began trading in July 2019. Its current value reflects Altshuler Shaham Provident and Pension has an impressive market value of NIS 2.4 billion.

And so we reach those who are not yet a significant player in the camel and training, but can occupy themselves a share, if he restored what Altshuler Shaham and Willin Lapidot did: the investment house Moore, who acquired a small camel activity, joined him with a reputable investment manager, and now for the first time returns Shlomo. For now, Moore's funds are still small, managing tens of millions of shekels per track, but yields recorded in 2019 were excellent, surpassing 20% ​​in training and camel - the highest in the market (among other things because of the benefits of cotton).

Against this backdrop, so far this year is bright for Moore's stock, which has soared by about 45% in three weeks and has risen as one of the ten best performing stocks to date on the current year. With the recent surge, Moore completes a jump of 145% since it began trading at the end of July 2017. The current share price reflects Moore's value of about NIS 580 million. Incidentally, analyst shares have risen 27% over the past 12 months.

And in conclusion, only one avenue in 2009 showed a negative return despite the sharp increases in the markets: Shariah tracks in savings for every child (Shariah - the Muslim law system). These are tracks that are subject to the rules of the Muslim religion, and they run negligible amounts, suffering 0.5% -0.8% year-on-year increases in the double-digit rate in the entire market.

Drink after school: All restaurants and bars are equal to students in Jerusalem

In collaboration with the Hebrew University