Altshuler Urges Insurance Agents to Retain Funds Amid Ownership Change

Gilad Altshuler, the outgoing owner of Altshuler Shaham Pension and Provident Funds, urged insurance agents and clients not to withdraw funds following the company's acquisition by Wishor. Speaking at a company webinar, Altshuler advised patience, stating that "it would be a mistake to take the money out" and that "nothing has changed right now." He emphasized the continuity of the investment management team, led by Leah Perminger, and the company's long-term strategic vision, which he believes will continue to yield strong returns.

Altshuler drew parallels to past market fluctuations, citing the trend of moving funds to S&P 500 index-tracking products three years ago, which later underperformed Israeli indices, leading to subsequent fund movements. He stressed the importance of taking a breath and acting with patience in financial decisions.

CEO Yair Levinstein, who will continue in his role and increase his stake to 25%, assured attendees that the ownership change would have "zero impact" on clients. He highlighted the significant growth potential in Israel's long-term savings market, valued at NIS 2.5 trillion, and expressed confidence that the partnership with Wishor would enable the company to capture this opportunity.

Levinstein also dismissed rumors of discord between himself and Altshuler, describing their 20-year partnership as one of mutual respect and stating that their decision to part ways was mutual and amicable. Altshuler attributed the separation to the cancellation of a planned merger of Altshuler Shaham's private activities into the public company due to regulatory complexities.

Despite assurances, some agents expressed skepticism, feeling the webinar conveyed a sense of pressure. They noted that while fund withdrawals predated the deal, client loyalty to Altshuler might diminish. However, they acknowledged that strong future returns could reverse this trend and lead to new inflows.