Mutual funds are benefiting from the bull market on the Tel Aviv Stock Exchange (TASE). Preliminary figures indicate that mutual funds raised more than NIS 3.3 billion in April. Events of recent months, including April in particular, underscore the tight link between mutual funds and the situation on the capital market: record levels on the TASE and the mediocre yield offered on deposits benefits mutual fund managers.
Encouraged by an advertising blitz by various investment houses recommending switching money from deposits to mutual funds, funds raised hundreds of millions of shekels on a daily basis, with stock-based funds the biggest beneficiary.
Psagot Ofek Investment House Ltd. raised NIS 1.25 billion in April, a third of the total amount raised by all mutual funds. Its mutual funds now manage NIS 19 billion in assets. Migdal Capital Markets Ltd. is in second place; it raised NIS 600 million in April, mostly for its 90/10 and 80/20 funds, the largest in the sector.
It seems that the heavy withdrawals suffered by Prisma Capital Markets Ltd. in the past year are over; its funds raised NIS 500 million in April. Excellence Investments Ltd. (TASE: EXCE) raised NIS 300 million for its mutual funds, DS Securities & Investments Ltd. (TASE:DSIN) raised NIS 200 million, and Ilanot Batucha Ltd. raised NIS 80 million.
Published by Globes [online], Israel business news - www.globes.co.il - on May 1, 2007
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