Israeli Regulator Demands Operational Fixes at Rapidly Growing Infinity Pension Fund
Infinity Pension Fund, established in early 2022 and operating since April that year, has quickly become one of Israel's leading pension funds due to strong investment returns and rapid asset growth. The fund, managed by Infinity Investment House owned by businessman Amir Eyal, benefits from a default enrollment model allowing employees to join without employer tender, fueling its expansion. It has attracted about one billion shekels in assets from new clients and transfers from competitors, reaching nearly two billion shekels by May 2025.
Despite its success, the rapid growth has caused operational challenges, including delays in processing contributions and member account registrations. These issues have drawn the attention of the Capital Market, Insurance and Savings Authority, which conducted several inspections over the past year. The regulator found significant operational deficiencies and sent formal demands to Infinity to correct them. Auditor George Panos has been appointed to conduct follow-up audits in the coming months to ensure compliance.
Infinity requested special approval to explore alternative operational methods due to current system overloads, but this request was reportedly denied. The regulator acknowledged the problems as uncommon but solvable and emphasized close supervision of Infinity’s corrective measures. Industry sources noted that pension fund operations are complex and costly, and rapid growth can strain service capabilities, as seen previously with other large funds.
Infinity’s operating company, Melam Team, reported a 30 million shekel loss in February following failed negotiations with a major Israeli bank over operational cooperation. The fund’s high returns, 59.4% over three years for members under 50, second only to Mor, stem largely from a focus on the Israeli stock market, which surged significantly in recent years.
Infinity currently manages about 9.5 billion shekels across pension, provident, and savings funds. The company recently appointed Ortal Leizer as VP of agents and agencies, signaling plans to expand insurance agent distribution. Amir Eyal stated that ongoing audits are positive and that the main challenge remains addressing operational bottlenecks while maintaining member rights and returns.
The Capital Market Authority noted that such inspections are routine and declined to comment on internal proceedings. Infinity’s rapid rise follows a 2022 regulatory tender aimed at increasing competition in a pension market previously dominated by five large insurers. Today, investment houses like Infinity control nearly 12% of the pension sector with 146 billion shekels in assets, more than doubling their market share in three years.
