War’s Start Sees Pension and Investment Funds Return NIS 24 Billion to Israel

War’s Start Sees Pension and Investment Funds Return NIS 24 Billion to Israel

From late October 2023 to mid-January 2024, there was a significant shift in the investment strategy of Israeli institutional investors such as pension and investment funds, insurance companies, and savings banks. These entities moved a total of NIS 24 billion from foreign investments back into local securities.

The breakdown of this shift includes pension funds, which transferred 9.9 billion shekels, while the remaining 14.4 billion shekels were transferred by other institutional structures. This information is based on reports from Calcalist.

This shift had a noticeable impact on the composition of the investment portfolios. The proportion of Israeli securities, which had been on a downward trend in 2022 and 2023, saw an increase of 1.8% in the past three months for pension structures. For other structures, the increase was slightly higher at 2%.

Analysts attribute this shift to the belief among Israeli entities that the local securities market, which has been declining since the onset of war, offers promising opportunities for future growth. However, not all institutional structures followed this trend. Three entities, namely Yalin Lapidot, Harel, and Menorah Mivtachim, actually decreased the proportion of Israeli portfolios.