2023-12-21 04:55:57
**Israeli Businessman Completes Multi-Billion Shekel Fund Sale**
In a major financial move, businessman Rani Zim, owner of Psagot Investment House, has successfully completed the sale of mutual funds totaling NIS 46 billion for a whopping NIS 297 million. The buyers in this massive deal are the investment houses of IBA and the mutual fund company Kesem of Phoenix, marking a significant shift in Israel’s investment and financial landscape.
IBA, under the management of Dave Lubetsky, will pay NIS 147 million for the ETF funds, which manage assets amounting to NIS 24 billion. This will result in most Psagot employees being absorbed into this new activity. On the other hand, Phoenix will pay 150 million shekels for trust funds in the amount of 22 billion shekels, which follow the indices of bonds and shares. As part of the deal, the Rani Zim Group will also receive cash in the amount of NIS 35 million, which is currently in the treasury of the fund management company.
In addition to the financial considerations, Zim has made a commitment to pay back a credit of NIS 120 million taken to finance the Psagot purchase deal. Following the transaction, Psagot will continue solely as a stock exchange company.
As a result of this purchase, the Phoenix Group will now hold the largest market share in the mutual fund market, managing assets amounting to a staggering NIS 69 billion and surpassing Meitav. The CEO of Phoenix, Eyal Ben Simon, and the CEO of the investment house and Kesem Funds, Avner Hadad, have both expressed their confidence in the transaction, stating that it is a significant and synergistic move for the investment house, particularly in difficult economic times for the country.
This sale and purchase of mutual funds marks a major development in Israel’s financial landscape and raises questions about the state of the country’s economy, especially as a recent report has revealed that about 30% of toddlers in Israel live below the poverty line. With changing market dynamics and shifting investment strategies, the impact of this transaction on Israel’s economy remains to be seen.
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