Psagot Investment House Ltd. has independently entered the pension fund sector for the first time. The investment house, managed by Roy Vermus, has won the tender for the veteran pension fund of the Histadrut Leumit. Psagot will pay NIS 107 million for the fund.
This acquisition will give Psagot a critical mass for setting up its own pension products and related operating systems.
This development has taken place while there are no large new pension funds coming on to the market, and despite Psagot's relatively small partnership with Ayalon Holding Ltd. (TASE:AYAL) in the Magen Zahav fund.
The Histadrut Leumit fund was put up for sale by special manager Yael Enderon who was placed in charge of the fund by its members.
Psagot won the tender after two rounds. In the second round Psagot was up against Israel Phoenix Assurance Ltd. (TASE:PHOE1; PHOE5) with both companies asked to submit bids of at least NIS 99 million.
The Histadrut Leumit Fund has 40,000 members and manages assets worth NIS 6 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2010
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