Pension funds in February: a return of 1.1% – the capital market

February in pension funds continues January’s gains: Pension funds in the 50-year-olds and below track yielded an average return of 1.1%, in what appears to be a continuation of a strong opening for 2021, as well as a direct continuation of the positive trend that characterized pension funds in 2020. 6.4%.

Clal continues to lead with a return of 1.6% in February and a cumulative return of 3.06% since the beginning of the year – the company is also leading in the study tables in recent months. In second place, Menora’s pension fund with a return of 1.28% in February, followed by Meitav Dash in third place with 1.16%.

At the bottom of the table, Harel’s pension fund, which yielded a return of 0.76% in February. Etchuler Shaham, while leading in yields in the medium term for three years, shuffled its performance in February, then yielded savers a return of 0.84%.

In recent years, the pension savings market has been divided into two main channels: pension funds and executive insurance. While competition for peers has intensified, the question of where it is best to be in terms of each saver remains without an absolute answer. That is, the answer to the question “where to save” depends on the customer’s personal characteristics and future demographic developments.

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 returns over time are important.

In this respect, as noted, over a period of three years the Altshuler Shaham fund leads with a return of almost 27%. After that, the Phoenix pension and Meitav Dash with a return of 24% and 23.2% respectively.

In the current situation in the Israeli economy, there is a slight priority in favor of investing in a pension fund. The savings industry in Israel is currently experiencing a decrease in competition, with a number of 9 different players in the pension funds, we will soon move to 7 with the merger of Hellman Aldubi into the Phoenix and those of Psagot into the Altshuler Shaham funds.

These mergers will also reduce the number of default pension funds. However, another tender for additional participants in the default arrangement that began during the former minister’s term as a window is planned to come out later.