Harel Insurance Leads Long-Term Investment Fund Inflows with Strong Returns and Lower Fees

Harel Insurance is experiencing its best period ever in attracting customer funds from competitors in the provident fund sector, including advanced training funds, investment provident funds, and savings for children. In the first half of 2026, Harel successfully transferred an impressive 6.3 billion shekels from rivals, with nearly 1.5 billion shekels coming in June alone. This amount is notable compared to most firms that struggle to raise such sums annually. However, Harel remains second to Meitav Investment House, which has attracted nearly 15 billion shekels from competitors since the start of the year.

This turnaround follows two years during which Harel lost over 12 billion shekels to competitors. Market experts attribute the recent inflows primarily to Harel's leading investment returns in the investment provident fund category. According to Maor Eliasi, CEO of Orient Insurance Agency, positive fund inflows are not due to marketing campaigns but rather consistent high rankings over 36 to 60 months. Harel's non-tradable asset holdings have also provided portfolio stability amid market volatility.

Harel leads with a 47.1% return over three years in the general track and 92% in the equity track, outperforming competitors by over 10%. However, its year-to-date returns are modest, around 4.3% to 6%, trailing some rivals. The company credits a strategic overhaul about two years ago, including upgrading its financial team and transferring investment management of provident funds to Harel Finance Investment House. Key figures behind this success are Michael Benvolgi, CEO of Harel Finance, and Ronen Kaploto, Chief Investment Officer.

Harel has also significantly reduced management fees, now averaging 0.55% to 0.56% annually, among the lowest in Israel's investment management sector. Despite paying relatively high commissions to insurance agents, the company maintains strong service and competitive fees, which industry insiders say help attract funds. Financial planner Oren Barsky notes that pension and long-term savings management remains separate from Harel Finance's investment house.

Meanwhile, Meitav Investment House continues its rapid growth, having become Israel's largest provident fund manager late last year. Since December, Meitav has averaged 2.3 billion shekels monthly in net inflows from competitors, totaling nearly 15 billion shekels this year, supported by solid and improving returns.

The article highlights the importance of consistent long-term performance, fee competitiveness, and strategic management changes in driving fund inflows in Israel's provident fund market.