The downward trend in capital markets since the beginning of 2022 continued in full force in February, when both global stock markets and bond markets traded in a negative trend in the past month. In the ranking of Maariv-Walla’s investment houses in collaboration Clarity Capital For February, which presents a clear advantage for investment houses that are more exposed to the local market.
The factors that clouded stock market trading in January – The fear of an inflationary eruption, expectations of rising global interest rates and realizations in technology stocks – continued to dictate the trend in the markets even in February. They were also joined last month by the war in Ukraine: global stock markets reacted to the new geopolitical situation and deepened their declines as the war escalated, following which economic response measures were exacerbated.
At the same time, the bond markets, which are considered a haven in times of crisis, did not provide the expected insurer this time and responded with declines in the expected interest rate hike in the United States (which, in March, reached an additional 6 hikes). Exchange rates in most of the bond indices were recorded in February, for example, index-linked government bonds fell by 3%, with 10-year bonds leading by 7%. The yield to maturity of 10-year shekel government bonds continued To rise and reached about 1.9% at the end of February, compared to about 1.6% at the end of January.
This is similar to the yield to maturity of 10-year US government bonds, which reached about 2% at the end of February, compared with about 1.8% at the end of January. An increase in bond yields to the maturity of these bonds reflects investors’ expectations of a number of interest rate hikes this year.
Ratings of additional investment houses:
Investment House Rating Month 12/2021
Investment House Rating 1/2022
In fact, there were almost no assets that showed increases over the past month, other than investment in gold and commodities like oil and wheat, which responded directly to increases in the war and fears of a shortage. Russia is a major oil supplier, and following the war there has been a significant decline in oil purchases from it, with countries like the US and UK even banning it. Brent oil responded with a 10% increase in February, to $ 99 a barrel. At the same time, Ukraine and Russia are responsible Together for 30% of the world wheat supply, 20% of the corn and barley supply and 80% of the sunflower oil supply.
As in the January ranking, Outstanding investment houses This month are the ones that presented low-medium exposure to stocks and low-medium exposure overseas in general. MorUnder the joint management of Yossi and Eli LevyAnd analyst, managed by Itzik Schneidowski, Continued to reap the rewards of overexposing to the local market and retained 1st and 2nd places in the rankings. An analyst also continues to stand out with his honors across many categories, ranking in one of the top three spots in 8 out of 11 categories.
Climbed to third place this month The PhoenixManaged by Eyal Ben Simon, An increase of one stage compared to 4th place in the previous month. The Phoenix continues to improve for the second month, having also risen to 4th place in the previous month, compared to 7th place in December. This, among other things, is due to its low-medium exposure to stocks and assets abroad.
He who did the opposite way is The best (The new-old name of the investment house, hitherto called Meitav-Dash), which dropped from third place last month to fourth place this month. This is the second month in a row that Meitav has dropped in the rankings, after dropping from 1st to third place in the previous month. Meitav, who this month recruited friend David Schwimmer (Ross Geller from “Friends”) to lead his advertising campaign, did emerge from the top three but remains at the top of the rankings.
In fifth place is another improvement – ruleManaged by Yoram Naveh, Which rose from eighth place in the previous month. It can be estimated that Clal’s improvement was recorded, among other things, against the background of its holding in the shares of Tower, which was sold to Intel last month. The Phoenix also, according to estimates, came out of the sale at a profit.
The table is also closed this month, similar to last month, lamp And Altshuler Shaham, Who screwed up in 9th and 10th places respectively. It is very possible that the good news for them will come in March, which was different from the first two months of the year.
According to Eran Peleg, the chief strategist of Clarity Capital“March was characterized by sharp declines in the global bond channel but the stock markets showed a sharp upward correction. It will be interesting to see if Moore, Analyst and Phoenix will be able to maintain their positions even in the March ranking or whether investment houses with higher overseas exposure will improve their status.
Behind the numbers: How were the investment houses rated?
The new ranking model, led by the Chief Strategist of Clarity Capital, Eran Peleg and Investment Manager Maor Levy, focuses on changes in investment houses’ performance in the medium term. “The unique insights of the model should be relevant to both the investing public and the investment houses themselves,” says Peleg. “What happened seven or ten years ago is not particularly relevant to current decision-making.”
The model examines the changes in the medium-term returns of all the leading investment houses in long-term savings products, such as savings for each child, age-dependent provident funds, investment provident funds and study funds. The reason, according to Peleg, is that in the medium term the impact of the capabilities of the various investment managers can be measured more significantly. In most investment houses, in the long run, the investment management team is unstable. Investment managers take turns and move roles. The model measures the history and changes in the performance of investment houses and of course does not predict future performance.
Peleg explains: “We have selected 11 main categories of long-term investment products (excluding mutual funds and pension funds) in which most investment houses are represented: general education study funds, three categories of shares and bonds, general investment provident fund and equity investment provident fund, savings for each child In a track at low, medium or increased risk and a camel for those aged 60 and over, 50 to 60 and 50 and under. The various tracks examined are stocks, bonds and general tracks.
In order to create a fair basis for comparing products managed by the various investment houses, within each category, investment products were neutralized in which the volume of assets managed is unusually small relative to what is customary in the category and / or whose performance history is short.
“In each category, we examined the returns of the investment houses’ leading investment products in time periods of three years (weight 50%), one year (weight 35%) and six months (weight 15%),” Peleg specifies. “It allows for a balance between long-term performance and changes that occur in the shorter term.”
In addition to the different time frames, the ranking methodology also takes into account the importance of the category itself. The method is to give relatively large weight to the categories in which many public funds are managed by calculating the percentage of the financial volume of the category out of all the assets managed in all categories. For example: the largest category in terms of assets under management is the study funds in the general track and therefore has a high weight in the weighting of the final grade. On the other hand, in the savings category for each child, the volume of assets is low, and it gains lower weight compared to the other categories.
Source: Maariv.co.il – כלכלה בארץ by www.maariv.co.il.
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