The primary buyer of my assets peaks which Altshuler Shaham was forced to sell as part of the transaction to purchase the investment house last year, he Rani Zim. It acquired through the public company Valeo Capital the activities of Psagot Mutual Funds, Psagot Securities, which deals with investment portfolio management, as well as hedge fund management activity and brokerage activity through a stock exchange member that it owns. The purchase was a leap forward in the business of Zim, the owner of the real estate company that bears his name, in the field of finance.
peaks Shel Zim, which recently returned to its original name (after changing to Valio Capital), reported this week a small profit of NIS 1.1 million in the second quarter of 2022 and only NIS 700,000 in the first half of the year. However, the company states that excluding the reduction of intangible assets (and accounting expenses), the profit in the second quarter was NIS 12 million, and about NIS 23 million in the first half. The management of the mutual funds and the basket certificates yielded to the peaks income of about NIS 54 million and a sectoral profit of about NIS 10.7 million.
Altshuler Shaham does not publish its income from the mutual fund activity because this activity is included under the investment house itself which is not public, but it is certainly possible to compare the raisings and redemptions of the two fund management companies during the last months. While Psagot raised NIS 1.4 billion in 2022, Altshuler Shaham’s trust funds redeemed more than NIS 6.5 billion.
Both companies have lost assets over the past few months, but to a completely different extent. The positive raisings of Psagot reduced the loss of value of the assets due to the negative returns in the capital markets to less than NIS 1 billion, the redemptions and the loss of value of Altshuler Shaham in the mutual funds reached about NIS 8 billion.
In addition to the provident activity, as mentioned, Zim also acquired the activity of the Psagot stock exchange member, which generated in the quarter revenues of approximately NIS 20 million and a segmental profit of approximately NIS 3 million, and the portfolio management activity, which generated quarterly revenues of approximately NIS 5 million, but a quarterly loss of approximately -360 thousand shekels.
Alongside the activity acquired from Altshuler Shaham, Psagot annexed at the end of December, 51% of Applichek, which operates in the credit sector. In the second quarter, the financing activity generated revenues of approximately NIS 14.6 million, while the non-bank credit, which constitutes the bulk of the activity, generated a sectoral profit of approximately NIS 2.2 million.
Psagot of Zim is currently traded at a value of approximately 400 million shekels, without a significant movement in the share price since the purchase of the activity from Altshuler Shaham last year.