WeSure Acquires Majority Stake in Altshuler Shaham Pension and Provident Funds

The digital insurance company WeSure, owned by Emil Vinnelshtein 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 veteran founders Gilad Altshuler and Kalman Shaham selling their holdings in the public provident and pension fund operations. Vinnelshtein, who previously led a successful turnaround at Ayalon Insurance, aims to stabilize returns and establish WeSure as the sixth-largest insurance and finance group in Israel.

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, attributed to weak investment returns compared to competitors. These underperformances were linked to factors such as exposure to China, low exposure to the Israeli market during its growth period, and holding long-term bonds.

Following the acquisition, the Altshuler Shaham name will be phased out of the pension and provident fund sector within 18 months, replaced by a new brand. The founders, Altshuler and Shaham, will retain ownership of the private company, which includes mutual funds, portfolio management, and trading activities.

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 overseen by the Capital Markets, Insurance, and Savings Authority. Experts advise against hasty decisions to move savings, emphasizing that such transfers should be based on professional considerations like long-term returns, management fees, and suitability of the investment track to the individual's age and needs, rather than ownership changes.

The article provides a practical guide for savers to assess their investments. It recommends using the government's "Har Kessef" website to locate all accounts and reviewing annual reports to understand management fees (both deposit and accumulation) and returns. Savers are advised to compare their chosen investment track's performance over three to five years against competitors on "Gmul Net" for provident and study funds, and "Pnesya Net" for pension funds. The guide also stresses the importance of choosing an investment track appropriate for one's age and risk tolerance, suggesting higher equity exposure for younger savers and more conservative options for those nearing retirement.