After one quarter of operations in Israel, there are 30 money market funds.
After one quarter of activity in Israel, money markets funds have amassed NIS 13 billion in assets, more than a tenth of the total funds industry. Money market funds now exceed mutual funds that invest in foreign markets and in Israeli stocks in terms of assets under management. There are more than 30 money market funds. The increase was despite, or possibly because of the, volatile quarter in the capital market.
The average return on money market funds was 1.2% for the first quarter. Money market funds of Mercantile Discount Bank had the highest quarterly return, at 1.6%, while the Clal Zahav and Migdal Kaspit Nayedet money market funds had the worst returns, at 0.9%.
The main distribution channel for money market funds are bank advisors. Before their launch, there was concern in the capital market that bank advisors might not recommend money market funds because the banks' revenue from deposits is higher, averaging 2%, compared with a distribution fee of 0.125% for money market funds.
Published by Globes [online], Israel business news - www.globes-online.com - on April 6, 2008
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