WeSure Acquires Majority Stake in Altshuler Shaham Pension and Provident Funds

The digital insurance company WeSure, co-owned by Emil Vinnchel and Zvi Barak, along with CEO Yair Levinstein, has acquired a 55% stake in the public company Altshuler Shaham Finances for approximately 1 billion shekels. The deal sees long-time founders Gilad Altshuler and Kalman Shaham selling their holdings in the public provident and pension fund operations. Vinnchel, who previously led a successful turnaround at Ayalon Insurance, aims to stabilize returns and establish WeSure as Israel's sixth-largest insurance and finance group.

Altshuler Shaham has experienced significant fund outflows in recent years, totaling around 142 billion shekels from provident funds and 20.5 billion shekels from pension funds. These outflows are attributed to a series of investment decisions that resulted in weaker returns compared to competitors, including exposure to China and under-exposure to the Israeli market during its growth period, alongside holding long-term bonds.

Following the acquisition, the founders, Altshuler and Shaham, will retain ownership of the private company, which manages mutual funds, portfolio management, and trading activities. The "Altshuler Shaham" brand name is slated to disappear from the pension and provident fund sector within 18 months, to be replaced by a new brand.

Savers' funds are protected by law, as Israeli regulations mandate a strict separation between the management company's assets and the clients' money. This money belongs solely to the account holders and is under the close supervision of the Capital Markets, Insurance, and Savings Authority at the Ministry of Finance. Savers are advised not to rush to transfer their funds but to make decisions based on professional considerations such as long-term returns, management fees, and the suitability of their investment track to their age and needs.

The article provides a practical guide for savers to assess their investments. It recommends using the government's free "Har Kessef" website to locate all accounts and reviewing annual reports to understand management fees (both from deposits and accumulated savings) and returns. Savers are advised to compare returns on "Gmul Net" for provident and study funds, and "Pnesya Net" for pension funds, looking at cumulative returns over three to five years and comparing them to similar tracks at competing firms. The guide also advises checking if management fees are within the accepted market range and exploring options for reduction, such as negotiating with the provider or checking employer-sponsored group agreements. Finally, it stresses the importance of aligning the investment track with age and risk tolerance, suggesting higher equity exposure for younger savers and more conservative options for those nearing retirement.