Meitav Investment House: Mutual funds lost an average of 2.7% in August.
Mutual funds lost almost NIS 4 billion in assets managed during August 2007, a month managers would probably prefer to forget. A survey by Meitav Investment House Ltd. found that mutual funds fell by an average of 2.7% in August, the industry’s worst month in years. In August, only 3% of mutual funds achieved a positive return - mostly of only 1-2%. Most of the funds returning positive results specialized in the shekel.
For the sake of comparison, the last poor month in June 2006, mutual funds fell by an average of 1.7%.
Interestingly, only 52% of mutual funds achieved a positive return in January-August; while the proportion was 98% in January-June. In other words, half of mutual funds saw their accumulated returns for the first half of the year more than wiped out in the past two months.
Published by Globes [online], Israel business news - www.globes.co.il - on September 3, 2007
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