Infinity currently has provident fund assets of less than NIS 1 billion under management, and will now manage NIS 20 billion more.
After a long tender run by Israel Electric Corporation (IEC) , it was decided at the end of last week that Herzliya-based investment house Infinity Group, managed by founder Amir Eyal, take over the running of the main provident fund for the pensions of IEC employees, CPY. Infinity's bid was preferred to that of its only rival, Meitav. As a result, Infinity, which currently has provident fund assets of less than NIS 1 billion under management, will manage approximately NIS 20 billion more in CPY.
Infinity will manage CPY for an annual management fee of 0.094%, will yield annual revenue of NIS 16-18 million. This is double the rate of management fees received by the the firm that managed CPY for the past five years, Clal Insurance. According to market estimates, Infinity's profit, if any, will be a few million shekels at most.
Published by Globes [online], Israel business news - www.globes-online.com - on February 14, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010