The new comprehensive pension funds achieved an average positive return of 3.35% on investments in January 2009, after a particularly bad 2008, in which they all had negative returns. With this return, the new pensions recovered in one month about of a quarter of their nominal losses last year.
The positive returns and steady deposits into the new comprehensive pension funds boosted their aggregate assets under management to NIS 50 billion, a level last seen in August 2008. This figure does not include two pension funds, which did not disclose figures: the Yuvalim Pension Fund of DS Apex Holdings Ltd. (TASE:DSAP), and a pension fund of Halman Aldubi Investment House Ltd.
Among the large pension funds, which have more than NIS 1 billion in assets under management, the worst performing fund in 2008 was the best performing fund in January 2009, and the top two funds in 2008 fell to the bottom of the rankings for January. The same thing happened among the small pension funds, which have less than NIS 1 billion in assets under management.
It should be pointed out, however, that for pension funds and long-term savings instruments, with investor horizons of decades, and one month's or one year's results have little overall bearing on investment management. This fact is especially pertinent during times of crisis and sharp fluctuations.
Phoenix Pension Fund of Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) was the best performing large pension in January, with a gross nominal return of 4% on investments (free investments weighted for the return on the designated bond component of the portfolio). The fund's return on its free investments was 5.46%.
However, Phoenix Pension Fund's cumulative return on investments for the preceding 12 months, since February 2008, is far less positive: it is minus 15.1%.
Meitavit Atudut Pension Funds Management Company Ltd of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) is in second place, with a return on assets of 3.84% in January. Harel Pension Fund of Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) is in third place, with a return on assets of 3.82% in January.
Israel's largest pension company, New Mivtachim Pension Fund Ltd. of Menorah Mivtachim Holdings Ltd. (TASE: MORA) is in fourth place, with a return on assets of 5.15%.
Among the small and mid-sized pension funds, the Magen Zahav Pension Fund of Ayalon Holding Ltd. (TASE: AYAL) stood out in January, with a return on assets of 3.23%. The Meitav Pension Fund had a return on investments of 8.7% in January, a performance that is especially alluring, after it was among the worst performing small pension fund in 2008, with a return of minus 19.5%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 23, 2009
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