While Israel is a young country, it has already amassed more than USD 500 billion in long-term savings. Yearly commitments to Private Equity are expected to exceed $5 billion while flows to Mutual and Hedge Funds are growing continuously.
Israeli Institutional Investors have over $500bn in AUM which went up 250% from 2008 to 2018. The increase was attributed to measures that sought to boost pensions.
Israeli fund managers' allocations to Private Equity continues to growth and is now close to 5% of their portfolios, on average.
In addition, Family Offices have been increasing their presence in the Israeli Institutional Investor market in light of the wealth- creation cycle driven (inter-alia) by the booming Real Estate and High-Tech sectors.
Institutional Investors are increasing their exposure to off-shore investments, with approx. 60% of off-shore investments carried out through mutual funds and ETFs.
Allocations to alternative investments are estimated to more than double to $30 billion and $60 billion over the next three and five years respectively.
Top five institutional investors by AUM