Meitav Dash is the big winner of the pension industry in 2020. The investment houses’ pension funds are at the top of the two main tracks in the Chilean model. In general, after a particularly volatile year, the pension funds closed with an average return of 6.4% in the track of members aged up to 50. This is an annual return similar to the average annual return generated by the pension funds in the previous decade, which stood at 6.6%. Funds for ages 50 to 60 yielded 5.6%.
Our pension should be examined mainly in the medium to long term and not in the short term. Although the last year provides an indication of the direction of investment and the trend in returns, it is important, but in general long-term returns are important. We will start with yields for a period of one year and move on to a period of 5 years.
The track for ages up to 50 at the best lapel yielded a return of 7.9% in 2020. In second place is Altshuler Shaham With a yield of 7.6%. In third place rule With a yield of 7.1%. The weakest is Hellman Aldubi with a return of 4.7% (this fund will soon be merged into Phoenix after the acquisition of the investment house by the latter). In the long run in the age up to 50 track, Altshuler Shaham leads with a return of 25.1% in 3 years. It is followed by Meitav and the Phoenix with a fairly similar return of about 21.9%. BA five-year term leads Altshuler Shaham with a return of 50.3%. In second place included with a return of 41.4% and the Phoenix with 40.4%. Best fourth lapel with 39%.
According to Guy Manny, Chief Investment Officer Meitav Dash, the pension returns came from the right choice of sectors. “In fact, we focused mainly on the technology and renewable energy sector with the outbreak of the crisis. In fact, from the very beginning of the corona we foresaw that the virus would benefit technology companies and therefore increased holdings. During the declines we aggressively acquired the companies mentioned while selling government bonds.” Also our non-negotiable portfolio that has given us a current return in the last two years. His rates are growing at the expense of the bond channel of employee companies and government bonds. “Regarding the continuation of the road, he states that he “Relatively optimistic, both for Israel and for the world. It will always take longer to recover because of the rate of vaccines but it will end 2021 in growth. This follows the policies of central banks and governments. Over the next year the shares will yield an excess return. I think the market will give a positive return, unless a black swan suddenly appears or the vaccines turn out to be ineffective. ”
Age track 50 to 60
In the 50 to 60 age group, Meitav Dash leads with a return of 7.9%, in second place is Altshuler Shaham with 6.5% and in third place is Clal with 6.2%. Over a period of three years, Altshuler Shaham leads with a return of 21.3%, next to it is Meitav Dash with 21% and in third place with 19.3%. Over a period of five years, Altshuler Shaham leads with 44.8%.
Pension funds in 2020 in the track up to age 50
It should be emphasized that Psagot did not transmit the December data to the BizPortal system (despite the requests), but in the last 12 months the yield of Psagot in the route up to 50 is 3.88%. In three years the yield is 17.19% and in five years – 29.57%. The return for the track for ages 50 to 60 is 2.6% for the last 12 months, for three years 13.2% and for five years – 22.75%. Yields are expected to be better thanks to December which was good in the markets, but on the face of it and relative to the other entities, Peaks is not starring.
Competition in the pension industry has increased
Competition in the pension industry has picked up speed in recent years with the adoption of default funds. These funds that are managed in the investment houses (Meitav Dash, Altshuler Shaham, Hellman Aldubi, Psagot) receive the automatic joining of new members, as long as the employer has not conducted a tender. In 2020, more than NIS 2 billion was transferred from the old pension funds in the insurance companies to the default funds. Meanwhile, they manage more than NIS 24 billion. In the age track up to 50.
In early 2016, pension funds moved to a different model of savings. The main idea behind this model is to adjust the degree of risk to the age of the saver. When the investor’s age is younger, the higher the risk investment channels, and the higher the investor’s age, the lower the risk channels for the investment channels. All of these, in addition to a rate of about 30% are designated bonds that are provided by the state at a fixed yield.
Pension funds in 2020 in the age range 50 to 60
It should be noted that the designated bonds are criticized and opposed by the Ministry of Finance, due to their high cost (fixed yield of 4.86% when de facto interest rates in the economy are nil). In recent years the Ministry of Finance and the Capital Market Authority have agreed in principle to change this method. Of guaranteeing a minimum return for retirees and possibly even a pension supplement for those earning a minimum wage.According to the Treasury, the two methods mentioned are cheaper than the supply of designated bonds.
Comments on the article(16):
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9.
Unprofessional article
Miro
18/01/2021 08:17
2
1The 2025 retirees in the menorah are not 50 to 60 but over 60
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8.
Peaks among the worst … escape! (LT)
I left
18/01/2021 08:17
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7.
Impressive results for investment houses
a B C D
18/01/2021 07:12
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0In one of those difficult years, an impressive success
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What difficult years
A
18/01/2021 10:07
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1Have you seen how many stock exchanges went up in 2020 to make 6 percent a year that stock exchanges went up by 20-30 percent this is misery and not a big achievement
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You talk like a pension fund holds 100% shares
Foundation
18/01/2021 12:53
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0And forgets that 30% is a designated government bond and also the balance in a significant part of it is invested in solid channels. So yes this is a great return
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6.
In the best year in the history of the stock market?
Jacob
17/01/2021 22:18
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5.
Well done for the best lapel
Nathan
17/01/2021 21:30
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0The best flaps are excellent
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4.
Are there pensions in the imitation track like mutual funds? (LT)
jewel
17/01/2021 21:12
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Yes (LT)
Learn
18/01/2021 13:49
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3.
Meitav Dash and Altshuler Shaham are good at retirement (LT)
Michael
17/01/2021 21:12
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Default funds
I passed
18/01/2021 00:59
1
0So in addition to charging the lowest commissions also provide the highest returns
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2.
Are you sure about the data?
Roi Sadan – Finance
17/01/2021 21:01
3
0How did you get the 5 year data from the pension funds in Altshuler? In the Capital Market Division – the “Pension Net” website, there is no way to reach 5-year data in the funds presented.
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1.
Where are the peaks ?!
One of the people
17/01/2021 20:04
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4Let me guess, you guys are “bourgeois” with them so you won’t even mention the name. BizPortal, this time breaking a record of childishness. As a site that claims to bring reality as it is, I think you are a bit disconnected from ….. reality
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Peaks? You’ve lived in the past
Moshe Moshe
18/01/2021 10:13
1
0Peaks is a zombie looking for who will buy it. My heart goes out to the workers there. They have no rosy future and according to the results of the investment house maybe this is the right time to change professions
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They are probably not really at the top
a question
17/01/2021 22:45
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0Peaks according to the data listed in the article would have reached the bottom of the table.
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Read again, they are not in the table because they did not provide the data, in the article
Investor
17/01/2021 21:25
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0The article says what their returns are
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