While Israel is a young country, it has already amassed more than USD 440 billion in long-term savings and yearly commitments to Private Equity and investments in Mutual Funds exceed USD 1 billion.
Israeli Institutional Investors have over $440bn in AUM. In the five years to 2016, insurance and pension fund managers’ assets bolstered their assets by 50% to USD 441 billion, according to the Bank of Israel. The increase was attributed to measures that sought to boost pensions.
In addition, Family Offices (FOs) 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.
In 2016, institutional investors had USD 11 billion in PE funds, up 162% compared to five years earlier, according to data analysis firm Praedicta. Foreign funds accounted for two-thirds of the investments. Allocations to alternative investments are estimated to more than double to USD 30 billion and USD 60 billion over the next three and five years respectively.
Top five institutional investors by AUM