February in provident funds: an average return of about 1.4% – the capital market

The average return for February 2020 in the provident funds was about 1.4% in the savings track up to the age of 50. In the provident funds in the general track, the average return was 0.8%.

The Phoenix-Excellence provident fund leads the monthly return for February, with a return of 4.04% and a cumulative return of 5.35% since the beginning of the year. This figure stands out in a very unusual way both in relation to the fund itself and the other investment houses, all of which achieved less than 1.5% and most of which achieved less than one percent in February, and especially – given the fact that Phoenix’s cumulative return for 2020 was 7.33%. What caused the large increase in the monthly return, which is almost half of the cumulative return that the fund made in 2020? We turned to Phoenix to get an explanation for the exceptional return and we will update you on their answer. In the medium term (neutralizing the Phoenix’s extreme movement) Altshuler is still leading but following the weak returns in recent months – the gap is narrowing.

In second place in February is Clal (Tamar)’s provident fund with a return of 1.43% in February and a very nice cumulative return of 2.93% since the beginning of the year. In third place – surprisingly, Menora Mivtachim has a return of 1.07% in February and has accumulated 2.36% since the beginning of the year.

The leader in previous years, Altshuler Shaham, continues to shuffle to the bottom of the table with the lowest return in February: 0.65%, which is in stark contrast to the impressive return of the fund in the medium term – a cumulative three-year return of about 23%. The low return in recent months erodes the high cumulative return in the medium term and later in the year we will see its effects.

Yellin Lapidot and Analyst – who have also performed at relatively good returns in recent years – continue to shuffle to the bottom of the table, with Analyst with a monthly return of 0.83% and Yellin Lapidot with 0.72%. Analyst’s coffers are still in second place in the medium-term return: 22.76%.

source: Company Reports

In the provident funds in the general track (with relatively small amounts left because the investment houses and insurance companies switched to age-dependent tracks, depending on the Chilean track), Meitav Dash leads with a monthly return of 1.94%, and a cumulative return of 18.69%, an analyst in second place with a monthly return of 0.79% and a cumulative three-year return of 19.66%.

In third and last place, Hellman Aldubi shuffles with a monthly return of 0.66%, accumulating from the beginning of the year of 1.43% and a three-year return of 16.89%.

source: Company reports