Altshuler Shaham Loses Billions Amid Ownership Change and Market Shifts

In August 2026, Israel's provident and pension fund industry saw significant shifts in institutional investor standings, marked by leadership changes at the top and continued outflows from underperforming firms. Altshuler Shaham Finance, the provident and pension arm of the Altshuler Shaham investment house, experienced net outflows totaling 2.4 billion shekels in August. This brings the firm's total losses to 23.7 billion shekels since the beginning of the year, attributed to weak returns in recent years, despite some recent improvement. These withdrawals occur as the acquisition of control over Altshuler Shaham Finance by WeSure GlobalTech, an insurance company controlled by Emil Vinnelshtein and Zvi Barak, alongside CEO Yair Levinstein, is finalized. The key question is whether this change in ownership will accelerate or halt the exodus of funds under the new brand.

The trend of fund outflows is not unique to Altshuler Shaham. Yelin Lapidot, another investment house with recent underperformance, recorded negative net transfers of 2.2 billion shekels in August, accumulating over 13 billion shekels in outflows year-to-date. Other firms also saw significant withdrawals, including The Phoenix Insurance Company (194 million shekels), Meitav Dash (148 million shekels), and Analyst (78 million shekels) in August.

On the other side of the ledger, Clal Insurance Company emerged as the leading fundraiser in August, attracting 1.6 billion shekels in net transfers, bringing its year-to-date total to 6.4 billion shekels. Meitav, which had consistently led the market this year with 18.1 billion shekels raised year-to-date, saw a slight slowdown, securing the second spot in August with 1.5 billion shekels. Migdal Insurance Company also showed strong performance, raising 1.1 billion shekels in August and 5.8 billion shekels year-to-date.

A notable entrant into the top fundraisers is Ayalon Insurance Company, a new player in the pension market, which recorded net transfers of 826 million shekels from competitors in August. This development raises regulatory questions, as WeSure GlobalTech, which controls Ayalon, is also acquiring control of Altshuler Shaham Finance. The Capital Markets Authority will need to rule on whether to permit WeSure to simultaneously control two separate provident fund companies, a move that would be unprecedented. Additionally, the commitment of both parties to maintaining separate brands for Altshuler Shaham Finance and Ayalon remains to be seen, especially after Ayalon invested significantly to establish its independent market position.