Following the changes brought forward by the Bachar capital market reforms, total funds managed by Israel's leading investment houses increased from NIS 225 billion in 2005 to NIS 263b. in 2006, of which 41 percent were in mutual funds and 23% provident funds, according to a report released Wednesday by Business Data Israel.
"The capital market players completely changed in 2006 as a result of the Bachar reforms and the banks' sale of mutual and provident funds to investment houses, which opened the market to new local and international players," BDI economists explained.
The three leading players in 2006, which were Prisma, the Harel Finance Group and Clal Finance Batucha, managed 40% of the value of the total assets managed by the 20 leading investment houses rated by the BDI report.
Following the acquisition of the Pekan and Malhak mutual funds from Bank Hapoalim, Prisma entered the BDI ranking, taking the top place from Clal Finance Batucha in terms of total assets including provident funds, which amounted to NIS 37b.
The Harel Finance Group jumped from ninth place in 2006 to second place in the ranking in 2007, managing NIS 34b. as a result of the purchase of Leumi Pia from Bank Leumi. In third place was Clal Finance Batucha, managing NIS 31b. in assets following the acquisition of Ilanot Discount investment house in 2006. Psagot Ofek Investment House was ranked in fourth place with NIS 27b. in assets and Excellence Nessuah Investments with NIS 23b. was in fifth place.
Clal Finance Batucha took the first place in the ranking in terms of assets under management - not including provident funds - which amounted to about NIS 31b. BDI economists added that about half of the group's assets were in mutual funds. Psagot Ofek Investment House, which was sold by Bank Leumi to York Capital, came in second place with NIS 26b. under management. In third place, with NIS 20b. in assets, was Prisma.
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