Altshuler Shaham Mutual Funds See Net Outflows After Months of Inflows

Altshuler Shaham's mutual funds experienced net outflows of nearly NIS 200 million in September, marking the first time since June 2025 that more money was withdrawn than invested. This reverses a trend from the first half of the year, when the investment house was a leading fundraiser in the industry. In September, both traditional and money market funds saw outflows, totaling approximately NIS 230 million, while index-tracking funds attracted NIS 32 million. The firm's mutual fund operations now manage nearly NIS 28 billion.

Traditional funds have seen consistent outflows throughout the first nine months of the year, accumulating to NIS 772 million in net withdrawals by the end of September. A more significant shift occurred in money market funds, which had been a key growth engine for Altshuler Shaham. The company aggressively marketed these funds, offering exceptionally low management fees of 0.06% to capture market share. This strategy led to substantial inflows, including NIS 2.3 billion in January alone and a total of NIS 8.6 billion net by the end of August. However, September saw these funds move to a net outflow of NIS 104 million for the first time this year.

The September outflows coincide with a major restructuring within the Altshuler Shaham group. The company is set to split, with its pension and provident fund activities being sold, while the investment house and its other operations, including mutual funds, will remain under the management of Gilad Altshuler and Kalman Shaham. This separation follows a period of significant withdrawals from Altshuler Shaham's pension and provident fund operations in recent years, prompting the firm to hold an emergency webinar for insurance agents to explain the deal and mitigate further customer departures due to uncertainty.

While the September mutual fund data doesn't definitively link the outflows to the restructuring, the shift in money market funds from strong inflows to outflows is notable. This segment had been the primary driver of the firm's fundraising success earlier in the year, making its reversal a significant development.