Equity provident funds achieved a return of 5.3% in July

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The provident funds and large general study funds will show an average nominal (gross) return of 2.2% in July 2020, according to data compiled by Avi Berkowitz, Deputy Chief Investment Officer of Meitav Dash Provident and Pension. 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 1.8% to a return of 2.6%.

The price increases in the stock markets abroad and in Israel and the price increases in corporate bonds in Israel acted as a positive factor in the box office yields this month. The S&P rose 5.1%, the Nasdaq rose 4.8%.

In Europe the German DAX rose by 4.2%, the French CAC rose by only 0.5% and the Eurostoxx 50 rose by 2.0%. In Japan: The Nikkei has risen a minimal 0.5%. The global index of emerging markets rose by a sharp 9.2%. All of these in currency terms of those countries.

The stock market in Israel also saw significant price increases, the Tel Aviv 35 Index rose by 2.8%, the Tel Aviv 125 Index rose by 4.2%, the Tel Aviv 90 Index rose sharply by 7.6% and the Over 60 Index rose, too. At a sharp rate of about 6.4%.

The local corporate bond showed a strong positive trend. The Tel Bond 20 index rose by 2.3%, the Tel Bond 40 index rose by 1.6% and the Tel Bond 60 index rose by 1.9%. The unrated bonds rose by 3.6%. General corporate bonds rose by 2.5%. Government bonds showed a negative trend of 0.3%, with CPI-linked bonds falling by 0.7% while shekel-denominated bonds remained unchanged.

The equity provident funds achieved a return of about 5.3% in a yield range of 3.5% to a return of 6.5%. A return of approximately 0.6% for the index provident funds in the range of 0.3% to a return of 0.9%. A return of 0.5% for shekel provident funds in the range of 0.2% to a return of 0.8%.

Comprehensive pension funds for children up to 50 achieved a return of about 2.7% in a yield range of 2.2% to a return of 3.5%. Comprehensive pension funds for those aged 50-60 achieved a yield of about 2.5% in a yield range of 2.0% to a yield of 3.0%. Comprehensive pension funds for those aged 60+ achieved a return of about 1.8% in a yield range of 1.5% to a return of 2.0%.

Since the beginning of the year, the general provident funds have reduced their negative return to 3.3%. Equity provident funds recorded a negative return of approximately 7.7%. In the yield range of minus 5.0% to minus 13.0%.

A negative return of 1.6% was also recorded for the index provident funds. The yield range was from minus 1.0% to minus 2.5%. A positive return of 1.5% for the shekel provident funds. Yield range: 2.0% -1.0%.

Comprehensive pension funds for up to 50 year olds have been achieved from the beginning of the year A negative return of about 3.0%. Yields range from minus 2.0% to minus 5.0%. Comprehensive pension funds for those aged 50-60 achieved a negative return of about 2.3%. Yields minus 1.0% to minus 4.5%. Comprehensive pension funds for those aged 60+ achieved a negative return of about 0.9%. Yields plus 2.0% to minus 2.0%.

Most of the world stock markets have shown a downward trend since the beginning of the year. In the U.S., a mixed trend, with the S&P index down 0.9%, the Dow Jones industrial average down 7.0%, and the Nasdaq up 17.5%. In Europe, there was a strong negative trend, with high variance between the various stock markets: the German DAX index decreased by 3.2%, the French CAC decreased by 17.1% and the Eurostoxx 50 decreased by 11.9%. In Japan: The Nikkei was down 5.3%. The global index of emerging markets fell by 2.5%. All of these in currency terms of those countries.

The stock market in Israel recorded a much stronger negative trend than the other markets: the Tel Aviv 35 Index decreased by 18.0%, the Tel Aviv 90 Index decreased by 8.4%, the Tel Aviv 125 Index decreased by 14.6% and the Over 60 Index decreased by 9.5 %.

There was also a negative trend in corporate bonds, despite and after the positive trend in July: the Tel Bond 20 index, the Tel Bond 40 index and the Tel Bond 60 index fell by 4.4%, 2.8% and 3.7%, respectively. Non-rated corporate bonds (and have no index) have fallen by 7%. The entire corporate bond index fell by 4%. The government bond index rose, however, by 1.2%.

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