29 of the 48 provident funds tracked by "Globes" achieved impressive returns of more than 3% in March 2009, including 12 funds that achieved returns of more than 4%.
42 provident funds reported a return of more than 8% for the first quarter of 2009, including 22 funds that achieved double-digit returns.
There is a caveat, however: it is highly doubtful if these returns are sustainable. Yesterday, the IMF reported that the economic crisis could cause up to $2.7 trillion in global losses in the most likely scenario, and up to $4 trillion in losses in the worst-case scenario. Last October, the IMF estimated the global losses from the crisis at $1.4 trillion.
Despite the provident funds' gains in the first quarter have not recouped their losses in 2008 - they will have to achieve an average return of 22% to do that. Only one provident fund has so far reached this level: the Gemel Clali B Fund of Analyst IMS Investment Management Services Ltd. (TASE:ANLT), which had a negative return of 43% last year.
Among the large provident funds, with more than NIS 1 billion in assets under management, the top performing funds are former funds of Prisma Investment House Ltd.: Tzur Fund, with a return of 12.55% in the first quarter, including 2.23% in March; followed by Katzir Fund in second place, with a return of 11.67% in the first quarter; Keren Or Fund in third place, with a return of 11.35% in the first quarter; and Sion Fund, with a return of 11.32% in the first quarter. On April 6, Prisma transferred the funds to Psagot Investment House Ltd. and closed its provident funds management company.
Published by Globes [online], Israel business news - www.globes-online.com - on April 23, 2009
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