The Tel Aviv Stock Exchange (TASE) fluctuated sharply during June and ended the month with a sharp drop. The effect on mutual funds was not long in coming, and they lost NIS 1.8 billion in aggregate assets under management, due to net withdrawals and negative returns, after an increase in the two preceding months. Mutual funds had NIS 116 billion in aggregate assets under management at the end of June.
The rise in inflation, which continued in June, is also affecting mutual funds, as investors pull their money out and transfer it to index-linked shekel bonds. Some money market funds saw their first withdrawals since their launch in Israel in January, although net aggregate assets under management for money market funds increased by NIS 90 million during June, according to Israel Securities Authority data, to NIS 17.9 billion. Net aggregate assets under management of shekel mutual funds fell to NIS 970 million at the end of June, net aggregate assets under management of corporate bonds mutual funds fell to NIS 1.1 billion, domestic equity mutual funds fell by NIS 690 million and foreign equity mutual funds fell by NIS 433 million.
In contrast, the net aggregate assets under management of mutual funds that invest in index-linked bonds rose by NIS 1.6 billion, making these mutual funds almost the only ones to see an increase in assets.
Mutual funds of Menorah Mivtachim Holdings Ltd. (TASE: MORA) and DS Securities & Investments Ltd. (TASE:DSIN) had the greatest increase in assets managed in June, bucking the market trend.
The aggregate assets under management of Menorah Mivtachim's mutual funds grew by NIS 312 million during June, including NIS 298 million in net deposits. The assets of Menorah Mivtachim's mutual funds have increased by 22.4% since January to over NIS 5 billion.
The aggregate assets under management of DS Securities' mutual funds grew by NIS 263 million during June, including NIS 198 million in net deposits. The assets of DS Securities' mutual funds have increased by 55% since January to over NIS 3 billion.
Mutual funds owned by Excellence Investments Ltd. (TASE: EXCE), Altshular Shaham Investment House Ltd., and Analyst IMS Investment Management Services Ltd. (TASE:ANLT) had a poor month. Excellence's mutual funds saw a NIS 138 million drop in assets under management, Altshuler's funds lost NIS 123 million, and Analyst's funds lost NIS 227 million. Psagot Investment House Ltd.'s mutual funds saw a NIS 50 million drop in assets under management.
Published by Globes [online], Israel business news - www.globes-online.com - on July 6, 2008
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