Psagot is the latest of several fund managers to raise fees.
Gadish Provident Fund, owned by Psagot Investment House Ltd., is raising its management fees, in line with other former bank-owned provident funds. Psagot announced that, beginning in November, Gadish's management fee will rise from an average of 1.1% of assets under management to 1.2%. The move will reportedly boost Psagot's revenue by NIS 60-80 million.
Gadish charged a management fee of 0.77% last year. Psagot closed its acquisition of the provident in March. It is neither the first nor the only provident fund owner to raise management fees. Prisma Investment House Ltd. raised the average fee of the provident funds it acquired from Bank Leumi (TASE: LUMI) from 0.75% to 1.2%; Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) raised its average management fee last year from 0.7% to 0.85%, and made a further hike last month to 1-1.1%; Excellence Investments Ltd. (TASE: EXCE) raised the management fee of the provident funds it bought from Mizrahi Tefahot Bank (TASE:MZTF) from 0.7% to 1.25-1.3%; and Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) raised the management fee of Tamar Provident Fund to 1.25% earlier this year.
Gadish is Israel's largest provident fund, with NIS 20.3 billion in assets under management.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2008
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