Provident funds yielded 18.6% in three years; What did your coffers do? Pension

Provident funds in the age-up to 50 track generated an average return of 7% in 2020. This is what the data show BizPortal. This is a return that mainly illustrates the rapid recovery of the capital market from the effects of the Corona virus and the importance of relying on long-term savings, with a monthly provision.

Mor Is the company with the best return on track with a return of 17.8%. Moore’s achievement and return are impressive by all accounts, although we have criticized them in the past as relying on private placements that yield high returns when the capital managed is relatively small. Moore argues that this is investment management based on analysis and analysis that allows for an excess return.

In second place on the track is Excellence With a return of 7.3%, Meitav Dash is in third place with a return of 6.7%.

Altshuler Shaham wins in the medium-long term
In the longer term of three years leads Altshuler Shaham With a return of 21.2%, in second place Analyst With a yield of 21%. Within a period of five years Altshuler Shaham Rose 43.3% andAnalyst Rose 40.1% and are the leaders.

Provident funds for members up to 50

The insurance commissioner is right
The average return in 2020 of provident funds is higher than that of pension funds, mainly due to small funds like Moore’s that manage to turn their smallness into an advantage for savers. These figures give a seal to the regulator’s desire to allow additional investment houses in the market to manage pension funds. Encouragement of new players is done as part of the reform of the authority known as “Pension 2025”. The reform includes the use of a uniform management system of all players in the industry and the removal of technological barriers to entry within it. According to the plan, this is the main plan that will be promoted in the coming years and will cause changes in the provident and pension together.

Track 50-60
Provident fund of Mor Also leads the 50 to 60 age track with an annual return of 14.2%. In second place is The best lapel With a yield of 5.8% andrule With a return of 5.5% is in third place. Within a span of three years the fund’s leader Altshuler Shaham With an increase of 19.6%, in second place Analyst With a return of 18.3% over a five-year period rose Altshuler Shaham 39.4% uAnalyst Rose 34.1%.

Provident funds for 50 to 60 year olds

Decrease in management fees
In recent years, there has been a consistent decline in provident fund management fees. In the report of the Commissioner of the Capital Market Authority for 2019, according to which the management fee in the provident funds decreased to 0.27% of the deposits. This is an average rate of less than half of that charged by the management companies in 2015 (a rate of 0.79%). The management fee from the accrual also decreased by more than 10% and decreased to 0.57%.

The most important thing that savers need to understand is that the management fee is personal (this is also the case with executive insurance and pension funds) and there is room for bargaining between the member and the executives. From this, there are gaps between the rates of management fees paid by colleagues among the large employers who receive benefits and the savers personally. GodThe Superintendent of Insurance mentioned Migdal, Clal, Phoenix and Menora as such as companies where differences in management fees can be found between members.

One way or another, competition is even expected to intensify in the coming years in the provident industry. This is when the Finance Committee will discuss the possibility of transferring members of provident funds from one company to another, even if they are debtors as a result of taking over their savings account. Granting a loan to members in the provident fund industry is one of the best loans for consumers in the economy. This is due to the clear interest of the management company to provide the loan to keep the member with it (as long as you have a loan, you will not be able to leave the fund). The possibility of moving from fund to fund, when your debt to the fund will pass with you, will probably increase the competition, but will at the same time hurt the loan terms given by the companies. This is due to the decrease in the loan’s ability to retain the member.

* Psagot’s data has not been received in the system so far. As of November, the Psagot fund returned 3.55% in 12 months. For three years it yielded 13.38%. The fund for ages 50 to 60 yielded a return of 3.07% over 12 months and 13.70% over three years.