Bethel Finance: NIS 2.55b withdrawn from provident funds in January

www.bethelfinance.com
NIS 2.55 billion was withdrawn from provident funds in January 2011, 0.85% of their aggregate assets, slightly less than the record NIS 2.72 billion withdrawn in December 2011. Nonetheless, provident funds' aggregate assets totaled NIS 299 billion, recouping most of their losses in 2011.

Market sources attribute this to technical reasons relating to Amendment 5, a directive that allows one-time capital withdrawals for people over 60, under certain circumstances. Withdrawal orders placed in late December were executed in January. As a result, the provident funds net growth rate (change in assets, excluding yield) was minus 1.31% for the preceding 12 months.

Altshuler Shaham Ltd. continued to recruit clients for its provident funds, mainly from other provident funds. Its net accumulation was NIS 258 million in January, including NIS 271 million in transfers. Yelin Lapidot Investment House Ltd. was in second place, with NIS 151 million in transfers and a net accumulation of NIS 178 million. With NIS 6.7 billion in assets under management, it is just NIS 121 million shy of Halman Aldubi Investment House Ltd., and a simple extrapolation suggests that Yelin Lapidot will surpass Halman Aldubi as Israel's tenth largest provident fund manager in March.

Excellence Investments Ltd. (TASE: EXCE) was in third place with net transfers of NIS 67 million, its best month since October 2007, and net accumulation of NIS 30 million. Analyst IMS Investment Management Services Ltd. (TASE:ANLT) was in fourth place with a net accumulation of NIS 5 million, followed by Infinity Investment House Ltd. with a net accumulation of NIS 1 million.

All other provident fund managers had negative accumulation in January, including DS Apex Holdings Ltd. (TASE:DSAP) with NIS 177 million, including NIS 144 million transferred by members to other companies; Psagot Investment House Ltd., with NIS 207 million; Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) with NIS 174 million, Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) with NIS 103 million; Halman Aldubi with NIS 54 million; Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) with NIS 52 million; and Menorah Mivtachim Holdings Ltd. (TASE: MORA) with NIS 38 million.