Altshuler Shaham Financials Sale Sparks Saver Concerns, Experts Urge Calm

The sale of controlling interest in Altshuler Shaham Financials, which manages approximately NIS 145 billion for two million savers, has raised questions about the security of pension and provident fund investments. However, financial experts assure that savers have no immediate cause for concern regarding the transaction itself. The sale involves the management company, not the actual pension and provident funds, and the money of the savers is not transferred to the new owners. Key investment personnel, including Chief Investment Officer Leah Perminger, are expected to remain, ensuring continuity in investment strategy. Yair Levinstein will also stay with the company and is set to increase his stake to around 25%.

While the immediate impact on savers' portfolios is expected to be minimal, the article highlights that the company's performance, particularly its investment returns, has been a more significant issue in recent years. Altshuler Shaham experienced substantial outflows from its provident and pension funds, partly due to relatively weaker returns compared to competitors. Historically, the company's investment policy, with a higher exposure to international markets and lower exposure to Israel, impacted its relative performance when the Tel Aviv Stock Exchange performed strongly. Recently, a shift towards higher exposure to the US and the dollar has helped improve its standing.

Experts emphasize that long-term savings depend on a combination of returns, risk levels, management fees, and investment track selection, rather than the identity of the controlling shareholders. They caution against switching funds solely based on short-term performance rankings, as investment styles can fluctuate. While large pension and provident fund managers invest in similar asset classes, differences in approach and timing can lead to performance variations. The article advises savers to focus on long-term trends, risk assessment, suitability of their chosen track to their age and needs, and management fees.

The deal, which is subject to regulatory approvals, involves WiShure acquiring 45% of Altshuler Shaham Financials. The article suggests that potential future changes could involve knowledge sharing between Altshuler Shaham and WiShure's other holdings, like Ayalon Insurance, which has historically favored higher exposure to the Israeli market. Any such shifts in investment policy would require careful evaluation by savers. The primary concern for savers should remain the management fees, as these directly impact savings, and any increase would be a valid reason to explore alternatives.