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Despite the relative stability of Israel's financial markets in August, the public continued to withdraw money from mutuals, according to the monthly review by Tel Aviv-based brokerage Meitav.

In August the general public withdrew NIS 2.5 billion from mutual funds, Meitav reported, reducing the funds' assets under management to NIS 48.6 billion, from NIS 51.1 billion.

From the beginning of the year, the funds' total assets under management have plunged by 23.2%, partly due to negative yield of 2.8% - but mainly due to the withdrawal of NIS 12.8 billion.

A breakdown into the types of mutuals shows that all suffered from redemptions. Mutuals specializing in bonds lost NIS 1.1 billion from redemptions. Despite the shekel's recovery in recent weeks, shekel-denominated mutuals also suffered from withdrawals, NIS 0.6 billion.

Fund specializing in foreign investments dropped by NIS 400 million in August, most of which came from mutuals targeting non-Israeli bonds.

Mutuals specializing in foreign currency suffered NIS 200 million withdrawals, while funds investing in stocks saw redemptions of NIS 118 million.