The calmer markets, following the plunges early this year, are reflected in the mutual funds industry, which raised NIS 1.5 billion in April. As in recent months, the contributions were due to inflows into money market funds, which raised NIS 1.7 billion in April.
Statistically, the mutual funds industry appears to have stabilized, but mutual funds managers can take little solace in the capital raised by money market funds because most of them charge no management fees, with the result that fund managers make no revenue from this business.
Not including money market funds, mutual funds saw NIS 238 million in net withdrawals in April, but the distribution varied widely. Bond mutual funds had a net increase of NIS 253 million, while stock mutual funds saw NIS 72 million in net withdrawals, shekel mutual funds saw NIS 197 million in net withdrawals, and overseas mutual funds saw NIS 222 million in net withdrawals.
Nonetheless, it seems that the fundraising by money market funds is slowing down, given that in the preceding months, money market funds raised double or even triple the amount of money raised in April. The drop in fundraising is partly due to weakening of the marketing blitz that accompanied the market funds' launch in January. Another factor is the rising inflation, which has made money market funds less worthwhile.
Psagot Investment House Ltd. had a 21.7% share of the mutual funds market in April, as it continued to maintain its substantial lead over its competitors. While most mutual fund manages have pretty much marched in place lately, Psagot's assets under management rose by over NIS 1 billion last month. Psagot now has NIS 25.5 billion under management, almost twice the amount of second place Prisma Investment House Ltd. Most of the money Psagot has raised has been by its money market funds, which have raised NIS 4 billion since January.
Prisma's mutual funds lost NIS 158 million under management in April.
The mutual funds of Menorah Mivtachim Holdings Ltd. (TASE: MORA) had a market share of 4% in April, after their assets under management grew by 6%, or NIS 283 million. In contrast to most of the mutual funds industry, Menorah did not raise capital for money market funds, but for its mutual funds, which charge management fees. The situation was similar at DS Securities & Investments Ltd. (TASE:DSIN), whose assets under management increased by NIS 183 million during April.
Altshuler Shaham Ltd. and Analyst IMS Investment Management Services Ltd. (TASE:ANLT) each had a market share of 2.51%. Altshuler Shaham's funds under management fell by NIS 14 million, costing it market share.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2008
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