A positive start to the provident funds

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Meitav Dash estimates that the provident funds and the large general education funds will show a nominal (gross) average positive return of 0.8% in January 2021. This expected return also represents the picture in the industry as a whole, with the yield range of all funds expected to range from a return of 0.6% to a return of 1.0%.

In January, the stock markets in Israel and corporate bonds in Israel welcomed investors and acted as a positive factor in fund returns.

The stock market in Israel recorded much stronger price increases than in most developed markets: the Tel Aviv 35 Index rose by 5.0%, the Tel Aviv 125 Index rose by 3.6% and the Over 60 Index rose by a sharp rate of about 10.6%. In contrast, the Tel Aviv 90 Index decreased by 0.4%.
World stock markets have shown a mixed trend.
In the US A mixed trend when the Dow fell 2.0%, the S&P fell 1.1% and the Nasdaq rose 1.4%.
in Europe Price declines were recorded: the German DAX was down 2.1%, the French CAC was down 2.7% and the Eurostoxx 50 was down 2.0%.
in Japan The Nikkei was up 0.8%.
The global index of emerging markets rose by 3.0%.
All these in currency terms of those countries.

In bonds The local concern A positive trend was recorded. The Tel Bond 20 Index and the Tel Bond 60 Index rose by 0.5% each, the Tel Bond 40 Index rose by 0.6%. The non-rated bonds rose by 2.1%. The General Corporate Bonds Index rose by 0.7%.
The government bonds index rose by 0.2%, while index-linked bonds rose by 0.6%, while shekel bonds fell by 0.2%.

Yield impact assessment in January

Yields of major investment channels in%

Positive contribution

Negative contribution

S&P 500

1.1% –

DOW JONES

2.0% –

NASDAQ

1.4%

NIKKEI

0.8%

DAX

2.1% –

Tel Aviv Index 35

5.0%

Tel Aviv 125 Index

3.6%

General Index of Government Bonds

0.2%

General corporate index

0.7%

Change in the shekel against the dollar (devaluation)

2.4%

Change in the shekel against the euro (devaluation)

1.1%

Short-term loans

0.0%

Dawn

0.2% –

Gillon

0.1%

Yields of provident funds by years

sleep

Yield in January

Annual return

2020

0.4%

4.8%

2019

2.8%

12.2%

2018

1.4%

1.1% –

2017

0.5%

7.3%

2016

1.4% –

3.3%

2015

0.8%

2.0%

2014

0.3% –

5.7%

2013

1.2%

9.5%

2012

2.7%

9.8%

2011

0.5%

3.5% –

.Source