The investment in China hurts return of Altshuler Shaham's education fund - Plunged 1.64% in September
Posted on Oct 18, 2021 by Ifi Reporter
The investment in China continues to harm the largest continuing education fund in Israel in an extreme way. Altshuler Shaham's continuing education fund, which manages almost NIS 58 billion, plunged 1.64% in September.
This is the worst monthly return recorded this year in the study funds in the general track, with a gap of almost 1% from the monthly average in the industry, which stood at a negative return of 0.67% in the large funds. Since the beginning of the year, the Altshuler Shaham training fund has achieved a return of just over 6%, compared with an average of more than 9% in the large funds. The fund's negative return, managed by Danny Yardeni, comes against the backdrop of its significant investment in overseas markets. Thus, the S&P 500 index lost 4.8%, breaking a seven-month continuum of gains and the Dow Jones lost 4.3%. A-35 and TA-90 rose by 2.5% in September, reaching a new high, and the TA-SME60 index rose by 5% this month.
But not only US investment has yielded negative returns for the Altshuler Shaham fund. In recent years, the investment house has increased its exposure to the Chinese market, which is estimated at 7% of its assets under management. - 5%. Since the beginning of the year, the index has fallen by more than 13%.
The first negative month
September was the first month of the year in which all the study funds ended in a negative return, except the Excellence Phoenix study fund. The foundation, managed by Hagai Schreiber, ended in a balanced manner.
According to Schreiber, the fund has evaded a negative return following investing primarily in local equities, in areas such as finance, insurance and energy. "Abroad, too, we are investing primarily in energy and finance stocks, which have performed better than other stocks in the markets," Schreiber said.
The Phoenix Fund merged into it this month the Hellman Aldubi Continuing Education Fund, 8 months after the acquisition of Hellman Aldubi by the Phoenix. The fund now manages more than NIS 10 billion. Despite excelling in September, the fund has been in fourth place since the beginning of the year in yield. Its place probably stems from a lack of exposure to the technology sector, at least vis-à-vis the main competitors. Schreiber explains that fund executives prefer to avoid investing in small technology stocks and prefer large, proven companies. "According to market behavior, we see in recent months that the extent of exposure to equities per se is less important. It is more important what to invest in and where.
Investment in the non-negotiable sector moderated the declines
In addition to investing in equities, the Phoenix Excellence fund has also benefited in the past month from flooding the value of its investments in the non-negotiable field - a field that is growing among Israeli institutions. The Phoenix invested in the private cyber company Guardicor, which was sold to the American Akmai for $ 600 million at the end of September.
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