Bank Leumi examines future of portfolio management business

Bank could establish its own portfolio management business to replace the portfolio investment division.

April 18, 2006 21:59
1 minute read.
bank leumi 298 88 aj

bank leumi 298 88 aj. (photo credit: Ariel Jerozolimski [file])


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Bank Leumi is reconsidering the continuation of its portfolio management business following the sale of Psagot Ofek to York Capital Management at the end of last year. Currently, Bank Leumi is in the process of examining three options, a bank representative told The Jerusalem Post. Among them was the possibility of the bank establishing its own portfolio management business to replace the portfolio investment division, which is being sold off to York Capital Management. As part of the sale, however, Leumi has acquired an option to buy half of Psagot Ofek's portfolio management business. Making use of the option would be another way for Bank Leumi to continue its portfolio management services, although the bank said it had not yet decided whether it would make use of the option. The third possibility under consideration, according to the bank, is the complete withdrawal from the investment management business. In accordance with the Bachar reforms, which obligate banks to sell their mutual and provident funds interests, Bank Leumi last November sold the business operations of its Psagot Ofek unit to New York-based York Capital Management for NIS 1.35 billion. York Capital was the first foreign investment company to buy an Israeli asset management company after the Knesset passed the Bachar law in July 2005.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection