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Market declines: This is the pension fund that yielded the best return Israel today

2022-06-23T05:54:52.652Z


The global crisis in the capital market has affected our savings in the pension fund • How dramatic is the impact? • Are there any benefits to investing in pension funds? • "Israel Today" answers all the answers


Exacerbation of inflation and the expectation of aggressive interest rate rises by central banks around the world, together with China's closing policies, are burdening stock markets in Israel and around the world and causing their indices to show a negative return since the beginning of the year.

About NIS 600 billion of the public is managed in the new pension funds.

How has the crisis in the capital market affected our savings in the pension fund?

In Israel, there are nine entities that manage the pension funds, two of which are relatively new (Moore and Infinity).

The largest pension fund is Menora, where about 30% of the assets are managed, followed by Harel, Migdal and Clal.

The most common investment tracks in recent years are tracks by age, in which the level of exposure to shares decreases by age, as well as a stock track.

As can be seen from the graph, the return of all pension entities has been negative since the beginning of the year.

Harel presented the best return since the beginning of the year, apart from the track for those aged 60 and over, in which Clal led.

Altshuler Shaham presented the lowest return on all routes.

Looking at the last 12 months, all funds in all tracks showed a positive return except for the Altshuler Shaham fund, which in recent years has shown negative returns in a variety of biases for growth stocks and China, and relatively low holdings in Israeli stocks.

Following the liquidation of the positions in China, Balchuler decided to transfer most of the investment to the US, but this decision turned out to be a mistake.

It should be noted that the short-term return of Altshuler Investment House in relation to competitors has caused billions of shekels to be transferred to competing funds.

The Tel Aviv Stock Exchange, Photo: Yehoshua Yosef

"Will lead to mistakes"

We enlisted the help of Eyal Siani, VP of Insurance and Finance Quality and a member of the Finance Committee at the Chamber of Insurance Agents, to put things in order. Siani notes that The loss created by the declines in the markets.

In our analysis of past returns on pension funds over the past 23 years (2021-1999), we found that only two of the 23 years had negative annual returns of 6.47% on average.

Also, in each year following a year in which there was a negative return, there was a high positive return of 18.17% on average. "

Is there a special advantage in investing in pension funds?

"It is important to know that the damage to savings in the new pension funds is less dramatic than in other savings products, since about 27% of the money saved by pension funds is in bonds, which guarantee an annual return of 4.86% linked to the index."

I'm on a stock track.

Is it possible to switch to another investment route?

"Yes. The pension funds have a variety of investment paths with different characteristics and different levels of risk. You can apply for a different investment path, and the funds will be transferred within 3 business days only. This can be done by contacting the management company or through the personal area on the company website It is advisable to consult a professional before making a decision on the subject in order to examine the suitability of the new investment track for personal needs, the desired level of risk and the range of investment.

"Remember: Few people managed to time the market in a way that knew how to move the funds to a 'solid' track at the beginning of market declines, and return to an investment track with high exposure to stocks at the beginning of market rises. Quite a few who tried to do so - lost."

Were we wrong?

Fixed!

If you found an error in the article, we'll be happy for you to share it with us

Source: israelhayom

All news articles on 2022-06-23

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