Provident funds and study funds in the general investment track close the first quarter of 2021 on the right foot, with record returns of 3.7%. This is the best quarter achieved since the start of the Corona crisis. In March, the funds yielded nominal yields of 1.8%, while according to the Meitav Dash Provident and Pension Investment House, the yield range of all the funds will range in March from 1.3% to 2.2%.
Yields last month are explained by price increases in the stock markets in Israel and around the world, including corporate and government bonds. In the US, the Dow Jones industrial average rose 6.6%, the S&P index rose 4.2% and the Nasdaq index rose only 0.4%. Against the background of price increases, there has also been a shift in investors’ money from technological growth stocks to value stocks. Simultaneously with the increases, the stock market recorded a significant increase in the volume of capital raised in both shares and bonds.
The Tel Aviv 35 Index rose by 3.9%, the Tel Aviv 90 Index rose by 4.6%, and the Tel Aviv 125 Index rose by 3.7%. In corporate bonds, the Tel Bond 20 Index rose by 1.1%, the Tel Bond Index 40 It rose by 0.9% and the Tel Bond 60 index rose by 1.0%. The data also show that the government bonds index rose by 0.5%, the index-linked bonds rose by 1.1%, and the shekel bonds by only 0.2%, against the background The surprising rise in the consumer price index in February, the shekel depreciates against the dollar by 1%.