Financial assets portfolio increased by 5.3%, to NIS 4.03 trillion

The Bank of Israel today announces developments in the public's financial assets portfolio in the second quarter of 2020. It shows that during the quarter, the balance of the public's financial assets portfolio increased by 5.3%, to NIS 4.03 trillion, after a decrease of 6.3%. In the previous quarter.
During the quarter, the balances of the public holding all the components in the portfolio increased, with the significant increase in the balance of investments abroad being particularly pronounced, as a result of the price increases in the stock markets abroad. There were also increases in the rate of foreign assets and the rate of assets in foreign currency.
The balance of the portfolio managed by institutional investors increased by NIS 108 billion (6.1%) in the quarter and stood at NIS 1.88 trillion. The rate of exposure of institutional entities to foreign assets, as well as the rate of exposure to foreign currency, increased by about 2.4 percentage points. The volume of the portfolio managed through mutual funds in Israel increased by about NIS 20.5 billion (7.6%).
Against the background of a certain recovery in the financial markets during the quarter, the balance of the public's financial assets portfolio rose by NIS 203 billion (5.3%), to a level of NIS 4.03 trillion. The weight of the public's financial assets portfolio in relation to GDP also increased by about 18 percentage points and stood at 288.8% at the end of the quarter.
During the quarter, the balances of the public holding all the components in the portfolio increased. The increase in the balance of investments abroad (16.8%) stood out, along with an increase in the balance of the government bond and makam component (3.3%) and the balance of the cash and deposits component (2.8%).
The balance of government bonds (tradable and non-tradable) and the makam increased by NIS 29 billion (3.3%). Mainly against the background of government bond issues. The balance of holdings in shares in Israel increased by NIS 10 billion (2.1%), mainly as a result of price increases and net investments (an estimate of NIS 1 billion).
The balance of corporate bonds in Israel rose by half a billion shekels (0.1%) and stood at about 327 billion shekels at the end of the quarter, mainly as a result of price increases that were mostly offset by net realizations (an estimate of about 1.4 billion shekels).
The balance of investments abroad increased during the quarter by NIS 99 billion (16.8%) and stood at NIS 591 billion - constituting 15% of the total asset portfolio. NIS 1 billion (24.3%) and stood at NIS 394 billion at the end of the quarter.
The balance of marketable bonds (corporate and government) abroad increased by NIS 22.5 billion (12.9%) and stood at NIS 196 billion at the end of the quarter. The increase was mainly due to net investments of about NIS 15 billion, along with price increases that were slightly offset by the appreciation of the shekel against the dollar. As a result of developments during the quarter, there was an increase in the rate of foreign and foreign assets of 1.8 percentage points (from 12.8% to 14.7%) and of 1.5 percentage points (from 20.3% to 21.8%), respectively.