Israeli Managed Investment Portfolios Surge to 493 Billion Shekels in 2025 Amid Stock Market Rally
The local stock market rally in 2025 propelled the total assets managed in investment portfolios to 493 billion shekels, marking an 18.5% increase from 416 billion shekels in 2024. This data comes from the Israel Securities Authority's review of licensed investment advisory and portfolio management firms. Of the total assets, institutional investors hold 236 billion shekels, while private clients account for 257 billion shekels. Institutional portfolios grew by 24% during the year, outpacing the 14% growth in private client portfolios. This disparity is partly due to new institutional entrants and their higher exposure to risk assets. Institutions often outsource to external managers for specialized investment areas and tend to have fewer withdrawals during market upswings, boosting their portfolio growth relative to private clients.
Despite a common perception of decline in the managed portfolios sector, the sharp asset growth contradicts this view. However, consolidation continues, with the largest ten firms now managing about 72% of the sector’s assets. By the end of 2025, approximately 94,000 client portfolios were managed, an increase of around 8,000 from 2024. Most new clients (6,500 out of 7,000) joined large firms managing over a thousand clients each.
The review also raises questions about the level of personalized portfolio management. Forty percent of activity for non-institutional clients is conducted through mutual funds, often managed by entities affiliated with the portfolio management firms. This is especially prevalent in smaller portfolios: 74% of portfolios under half a million shekels rely solely on mutual funds, which can be purchased directly on the capital market without a portfolio manager. Such reliance may limit client choice and tie them to products from a single group. The share of mutual funds in managed portfolios has increased from 36% in 2023 to 40% in 2025. The Authority acknowledges this trend, noting a rise in assets managed via mutual funds in non-institutional client portfolios across all categories. Portfolio managers generated revenues of 355 million shekels in 2025 for related corporations, including those managing the mutual funds included in client portfolios.
