Migdal continues to lead mutual funds growth

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Money continued to pour into Israel’s mutual funds in the first quarter of 2021. In fact, in the twelve months to the end of March, the market has grown by some NIS 30 billion from the low that followed the outbreak of the coronavirus pandemic. The figure is from the reports by the mutual fund management companies.

In March 2020, redemptions from the mutual funds totaled some NIS 40 billion. The lowest point was recorded on March 22, 2020, when the value of the market totaled NIS 255.3 billion. Since then, the mutual funds market has grown by NIS 96 billion, or 38%, to an aggregate value of NIS 351.3 billion. This is thanks to inflows of over NIS 30 billion and to positive returns on the capital market. The market is just 2.2% below the peak recorded on January 23, 2020, when its aggregate value was NIS 359.3 billion.

Inflows in the first quarter of 2021 totaled NIS 9.7 billion, and together with an average return of 3.3% added NIS 11 billion to the value of assets held by mutual fund investors, giving a percentage rise of 6.3% in the quarter

Migdal Capital Markets, of the Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) group, has led the inflow table for some time. The investment house, headed by Sagi Stein, took in the most money in March 2021, in the first quarter, and in the twelve months to the end of March. It was also the leader for the year 2020. The mutual funds management operation is managed by Lior Kashrian.

At the end of 2019, Migdal Capital Markets had a 9% share of the mutual funds market. Today, its share is 12.1%, representing growth of 34%. KSM, headed by Avner Hadad, and Altshuler Shaham Mutual Funds, headed by Shay Yaron, follow Migdal Capital Markets in the inflows table, and each now has a market share 15% higher than at the end of 2019. In KSM’s case, the growth partly stems from the acquisition in 2020 of the Alumot funds, which at the end of 2019 held 0.7% of the total market.

Meitav Dash Mutual Funds, headed by Rafi Niv, is the largest player in the mutual funds market, with a 17.2% market share, 2% more than at the end of 2019.

Psagot Mutual Funds has lost 17% of its market share since the end of 2019, dropping from 14.7% to 12.2%. Psagot is the third largest player in the market. Other firms that lost share in the mutual funds market in the 15 months from the end of 2019 are Analyst, Forest, Yelin Lapidot, More, and IBI, and Harel.

Published by Globes, Israel business news – en.globes.co.il – on April 7, 2021

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