All main investment instruments fell last week, and accordingly the mutual funds industry posted an outflow of some NIS 1.1 billion, almost three times the level of redemptions in the previous week. The traditional funds saw an outflow of NIS 1.3 billion last week, the highest weekly redemption figure since Operation Protective Edge in the summer. The figures are from estimates by Meitav Dash.
General bond funds saw redemptions of NIS 580 million last week, which compares with a small net inflow the previous week.
With government bond prices falling, government bond funds switched to redemptions, of some NIS 300 million, compared with redemptions of just a few million the previous week.
The TelBond 20, 40 and 60 corporate bond indices registered drops last week of up to 1%. The rate of redemptions from corporate bond funds rose by 45% in comparison with the previous week, to some NIS 450 million. For the month to date, redemptions from corporate bond funds total NIS 760 million.
Equity funds registered a net outflow of NIS 30 million last week, making it a net outflow of NIS 210 million so far this month. Overseas equity funds raised about NIS 100 million, versus redemptions totaling about NIS 130 million in Israeli and flexible funds.
Investors injected some NIS 180 million in the "safe haven" of money market funds, although month-to-date these funds have seen redemptions of NIS 290 million. The shekel funds continue to hemorrhage, with a net outflow of NIS 360 million last week, and NIS 610 million since the beginning of the month.
Against the background of a fall in the shekel-dollar exchange rate last week, the rate of inflow to overseas bond funds moderated by some 40%. These funds have raised NIS 1.06 billion so far this month.
Published by Globes [online], Israel business news - www.globes-online.com - on December 15, 2014
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