Altshuler Shaham and Yelin Lapidot Bleed Assets Amidst Market Shifts

The Israeli pension and provident fund market saw significant shifts in August 2026, with major players like Altshuler Shaham and Yelin Lapidot experiencing substantial outflows of funds, while Clal Insurance emerged as a top recruiter. Altshuler Shaham's pension and provident fund arm lost 2.4 billion shekels in net transfers to competitors during August, bringing its year-to-date losses to 23.7 billion shekels, attributed to weak past returns despite recent improvements. This comes as the company's controlling stake is set to be transferred to WeSure GlobalTech, led by Emil Vinshel and Zvi Barak, along with CEO Yair Levinstein. The key question is whether this ownership change will stem the tide of fund departures.

Yelin Lapidot also faced significant withdrawals, losing 2.2 billion shekels in August and over 13 billion shekels year-to-date, also linked to recent underperformance. Other firms like The Phoenix, Meitav Dash, and Analyst also recorded net outflows in August, though on a smaller scale.

Conversely, Clal Insurance led the market in August, attracting 1.6 billion shekels in net transfers, boosting its year-to-date inflows to 6.4 billion shekels. Meitav, a consistent leader, secured the second spot with 1.5 billion shekels in August, while Migdal Insurance added 1.1 billion shekels. Newcomer Ayalon Insurance also made a notable entrance, recording 826 million shekels in net transfers.

The potential acquisition of Altshuler Shaham by WeSure raises regulatory questions, as WeSure also controls Ayalon. Regulators will need to decide if WeSure can simultaneously control two separate provident fund companies, and whether the brands will remain independent or eventually merge, especially after Ayalon's recent investments to establish its market presence.