Mutual funds continued to grow in February 2009. Preliminary figures obtained by "Globes" state that mutual funds' aggregate assets under management increased by about NIS 2.6 billion so far in February, after increasing by NIS 7 billion in January. Their totals assets under management have reached NIS 107.2 billion.
The figures indicate that the eight largest mutual fund management companies, which account for 80% of the market, have raised nearly NIS 1 billion since the beginning of February, implying that the industry as a whole has raised about NIS 1.2 billion. This means that almost half of the increase in mutual funds' assets under management during the month came from net new investment and rest came from positive returns on investments, especially in government bonds.
As for money market funds, for the only the second time since their launch in Israel, their aggregate assets under management declined in February (the other month was June 2008). The eight largest mutual fund management companies saw an aggregate NIS 1.5 billion in withdrawals from their money market funds. However, the mutual funds of these companies raised an aggregate NIS 2.5 billion, mostly by government bond and short-term note funds.
The figures also indicate that of the eight largest mutual fund management companies, only Migdal Capital Markets Ltd., Harel Finance Ltd., IBI Investment House Ltd. (TASE:IBI), and Excellence Investments Ltd. (TASE: EXCE) were able to raise money for both their mutual and money market funds during February, mostly by their government bond funds. Migdal Capital Markets, Harel Finance, and Excellence still do not charge management fees for their money market funds, contributing to their ability to attract investment.
Mutual funds of Midgal Capital Market have raised the most money so far in February - NIS 823 million, including NIS 343 million by debt and equity mutual funds.
Mutual funds of Excellence have raised NIS 770 million so far in February, including NIS 600 million by money market funds.
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2009
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