Best month for equity funds in 9 years

Equity funds have raised a net NIS 880 million so far in October 2013, the best month since January 2004.

Equity funds have raised a net NIS 880 million so far in October 2013, the best month since January 2004, after raising a net NIS 300 million last week, says Meitav DS Holdings Ltd. (TASE:MTDS). A net NIS 30 million has been withdrawn from government debt funds so far this month.

The rally on stock markets around the world, including the Tel Aviv Stock Exchange (TASE) is prodding investors to boost their investments in stocks, assuming greater risk. Very low interest rates and low yields on government and corporate bonds leave investors with few choices for achieving high returns.

The Tel Aviv 25 Index rose 13% from 1,156 points on August 1 to a high of 1,308 points last Wednesday, before falling back. Government and corporate debt indices rose last week, but stock indices fell slightly. Net capital raised by equity and debt funds rose 15%, for a total of NIS 1.14 billion, of which NIS 1 billion, 85% of the total, was raised by general and equity funds.

General funds, especially mixed funds and 10/90 funds, raised a net NIS 700 last week, and a net NIS 2.5 billion since the beginning of October. Shekel equity funds raised a net NIS 120 million last week, slightly more than in the preceding week. Conversely, a net NIS 390 million was withdrawn from money market funds last week, and a net NIS 350 million has been withdrawn since the beginning of October.

Corporate debt funds raised a net NIS 70 million last week, 30% less than in the preceding week, and have raised a net NIS 300 million since the beginning of October, half of which was raised by tracking funds.

Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2013

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

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