The public's financial assets portfolio in the third quarter of 2012
§ In the third quarter of 2012 the value of the public's financial assets portfolio increased by about 2.3 percent in real terms, and reached NIS 2.6 trillion at the end of September.
§ The domestic shares portfolio increased by about NIS 44 billion, due primarily to the increase in share prices on the Tel Aviv Stock Exchange (TASE); while the domestic tradable bond portfolio increased by about NIS 9 billion, due primarily to net issues.
§ The value of the public’s assets portfolio abroad increased by about NIS 14 billion, primarily in the foreign shares component: the combination of increased investment flow from Israeli residents and an increase in share prices on foreign stock markets.
§ As a result of the above developments, the share of tradable assets in the portfolio increased by one percentage point in the third quarter while the share of deposits in Israel and abroad declined.
§ There was a net increase in the section of the portfolio managed through mutual funds, primarily through net new investments in government bond funds, money market funds and foreign funds.
1. The total assets portfolio
In the third quarter of 2012 the value of the public's financial assets portfolio increased by about 2.3 percent in real terms, and reached NIS 2.6 trillion at the end of September.
The increase was due primarily to an increase of about NIS 44 billion (12.3 percent) in the value of the Israel shares portfolio and about NIS 11 billion (6.4 percent) in the value of the foreign shares portfolio. The increases in the shares component primarily reflected the price increases in stock markets in Israel and globally, but also reflected the strengthening flow of net investments into foreign shares.
Since the beginning of 2012, there has been an increase of about 1 percentage point in the share of tradable assets in the portfolio, and of about 0.5 percentage point in the share of risk assets and foreign currency assets. At the same time, there was a decline in the share of deposits in Israel and abroad.
2. The securities portfolio, by main components
3. Mutual funds
The value of the portfolio managed by Israeli mutual funds was NIS 160 billion in September 2012, about 6 percent of the public's total asset portfolio, and about 12 percent of the tradable assets portfolio in Israel. (Mutual fund assets are included in the portfolio analysis in the previous sections.) In the third quarter of 2012, mutual fund assets increased by about NIS 9 billion (6 percent)—the combination of a NIS 6 billion surplus of new investments over redemptions, and price increases in the markets.
A breakdown of mutual funds by specialization shows that net investments were concentrated in government bonds, money market funds, and foreign bonds (about NIS 7.5 billion), with a notable continuing growth trend in recent months. Since the beginning of 2012, net investments in the mutual funds totaled about NIS 13.4 billion, most of which were in government bonds (NIS 8.7 billion), money market funds (NIS 3 billion) and unindexed bonds (NIS 2.2 billion).