Equity funds post strongest week this year

Equity and flexible mutual funds raised a net NIS 240 million last week.

Last week was characterized by a rally in stock and bond indices on the Tel Aviv Stock Exchange (TASE). Consequently, equity and debt mutual funds kept their pace of raising capital from the previous week. General and equity mutual funds raised a net NIS 950 million last week, 90% of the total net amount raised by debt and equity mutual funds, according to Meitav DS Holdings Ltd. (TASE:MTDS).

General mutual funds, especially mixed-equity exposed funds, 10/90 funds, etc. raised a net NIS 650 million last week and a net NIS 1.8 billion since the beginning of October.

The Tel Aviv 25 and Tel Aviv 100 indices both rose by 0.3% last week, and the Tel Aviv 75 Index rose by 0.7%. Following the Tel Aviv 25 Index's 11% gain in September, investors have been raising their exposure to stocks in their investment portfolios. This is reflected by the rate of capital raised by equity mutual funds. Last week was the strongest week so far this year: Israeli equity mutual funds raised a net NIS 240 million and have raised a net NIS 490 million since the beginning of October.

Investors are leaving safe havens - unlinked debt mutual funds raised a net NIS 110 million last week, 30% less than the week before. These funds have raised a net NIS 460 million so far in October. Money market funds saw a net NIS 330 million last week, although they have raised a net NIS 40 million since the beginning of the month.

Corporate bond prices have been rising: the Tel Aviv 20, 40, and 60 indices rose by up 0.2% last week, and the General Bond Index rose by 0.3%. Consequently, debt mutual funds raised a net NIS 100 million last week, 60% more than in the preceding week, and have raised a net NIS 230 million since the beginning of October. Half the funds were raised through tracking funds.

Government bond mutual funds saw a net NIS 90 million in withdrawals both last week and since the beginning of October.

Mutual funds currently have NIS 222 billion in assets under management, including NIS 158.7 billion under management by debt and equity mutual funds (excluding money market funds).

Published by Globes [online], Israel business news - www.globes-online.com - on October 20, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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