Small Israeli investment house Infinity has grown rapidly in its provident and education-fund business, with assets under management surpassing 7 billion shekels. That is up 240% in just two and a half years, after drawing nearly 2 billion shekels from rivals. For the company, led by CPA Amir Eyal, the growth has been driven mainly by strong performance rather than distribution.
Infinity posted the industry’s best returns in key tracks. In the general education-fund track, it delivered 52% over the past three years, compared with an industry average of 46.6%, and it also ranked first over five years. In the equity track, it returned 108% over five years, versus an 82% industry average. Despite that, it remains the smallest provident-fund manager in the industry, with just over 0.5% of total assets in a market now worth more than 1 trillion shekels.
Eyal and Infinity said their decision, made more than two years ago at the start of the war, to keep money in Israel paid off. Eyal then argued that Israel was entering its “golden age” economically. Over the past two years, Tel Aviv Stock Exchange indices gained more than 100%, while Infinity kept a higher Israel exposure than many competitors, 55% versus 40% for some and as little as 20% to 30% for others, and had less foreign-currency exposure, limiting damage from the shekel’s strength against the dollar.
Infinity CEO Lior Wax said the firm relies on liquid markets, fast trading, AI-based analysis, macro research abroad and micro analysis of Israeli companies. He said the portfolio is now about 50% Israel and 50% U.S., with a short position on Europe, which he described as having serious problems. Wax also said the firm is shifting away from some technology exposure after sharp gains in chips, while still seeing AI as a long-term leader through areas such as energy and cooling for data centers.
The company’s rapid growth has also exposed operational strain. It is last in the industry’s service ranking, and rivals argue it has a ceiling because it does little business through insurance agents, who control much of the market. Wax rejected the criticism, saying Infinity is growing without agents because of its returns and refusing to pay eight to ten years of upfront distribution commissions. He also said the firm’s pension fund is safe because it has three reinsurers and an actuarial surplus, which he said could mean negative fees for savers in the coming years.
