Psagot Investment House Ltd. became Israel's largest investment house when it bought Gadish Global Financial Services and fund management company Gmulot Ltd. in March, according to the Dun's 100 report by Dun & Bradstreet Israel. It took the top spot away from Prisma Investment House Ltd. "The shake-up of the capital markets following the Bachar reforms is not over and the market is still changing," D&B Israel CEO Reuven Kovent said Wednesday. "Investment houses are growing via mergers and acquisitions, and the leading investment houses of today are not necessarily the top houses of tomorrow." "Competition among the players in the market will continue to accelerate in 2008," he said. "We are already witnessing signs of mutual fund management fees coming down, and it looks like this is just the beginning of lower management fees in the fund industry." In March, Psagot Investment House Ltd., a subsidiary of York Capital Management LLC, completed its takeover of Gadish Global Financial Services Ltd, the country's largest fund with NIS 19.8 billion under management, and bought fund management company Gmulot Ltd. from Bank Hapoalim. Following the acquisition, Psagot jumped from third place in the ranking conducted by D&B Israel at the end of 2007 to No. 1 at the end of the first quarter this year. Its volume of assets under management increased from NIS 40.6b. at the end of 2007 to NIS 75.7b. today. Following the changes introduced by the Bachar capital market reforms, which forced the banks to sell mutual and provident funds, total funds managed by Israel's 17 leading investment houses increased to NIS 328.8b. at the end of 2007. Those same investment houses employed a total of 3,100 workers in 2007. Until the end of 2007, Prisma Investment House Ltd. was the No. 1 investment house, managing NIS 50b., including NIS 30.6b. in provident funds and NIS 15.7b. in mutual funds. Excellence Nessuah Investment House was ranked No. 2 with NIS 42b. under management. Clal Finance Batucha Investment Management Ltd. was ranked No. 4 with NIS 34.4b. under management at the end of 2007. Dash Apex was No. 5 with NIS 28b. under management.