March 2017 was a good month for investment managers at Israeli financial institutions, and also for those with long-term savings plans. A "Globes" survey of returns in the first quarter of the year shows that the provident and advanced training funds, savings policies of the insurance companies (known as executive insurance), and the new pension funds (established on or after January 1, 1995) had a gross nominal return of 0.4-0.5%.
The long-term savings instruments finished the first quarter of 2017 with an average return of 1.3-1.7%, bringing their cumulative return over the past 12 months to 5.3% for general provident funds and 7% for participating policies. All the leading groups in the market had positive returns.
As of March 31, 2017, the new pension funds managed an aggregate NIS 260 billion in assets. If life insurance savings invested in the capital market by the insurance companies, among them participating policies, are included, the volume of aggregate managed assets totals NIS 270 billion. Figures from the pension and insurance systems operated by the Israel Capital Market Authority show that these two savings markets had average yields of 6.93% and 6.18% over the past 12 months.
The participating policies sold in 1992-2003 manage NIS 154 billion in assets. This portfolio, which is not available to new savers, recorded an average cumulative return of 7.03%.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 8, 2017
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