The stars of the mutual fund market lose altitude: "Investors are not afraid the market will run away"
The mutual fund industry raised 7.6 billion shekels in October, but traditional funds recorded unusual redemptions of 3.2 billion shekels amid political uncertainty and declines in Tel Aviv. Money market funds raised 3.7 billion shekels as investors prefer to "sit on the fence."
Israel's mutual fund industry posted a positive October with net inflows of about 7.6 billion shekels, bringing total assets under management to approximately 859 billion shekels – a 13.5% increase since the start of the year. However, beneath the surface, significant gaps emerged: foreign equity funds raised 7.9 billion shekels, while their domestic counterparts recorded unusual redemptions of 3.2 billion shekels. Traditional active funds, which were the stars of the market last year with inflows of 28.5 billion shekels, saw redemptions of 1.4 billion shekels in October – the first time in a year and a half. Investment managers explain that investors are "sitting on the fence" amid declines in Tel Aviv, political uncertainty after the elections, inflationary pressures, and the U.S. elections. Money market funds continue to benefit from this status, raising 3.7 billion shekels in the month and 38 billion since the start of the year. The assessment is that the trend will continue in the coming weeks until the political and economic picture becomes clearer.