Minister of Finance Moshe Kahlon and Israel Securities Authority chairman Shmuel Hauser are promoting mutual funds for investing in public and private high-tech companies.
Kahlon approved the regulations for founding high-tech mutual funds. A high-tech mutual fund is a special-purpose instrument for investing in Israeli high-tech companies engaging in R&D, including those not listed on any stock exchange. The measure will bring money into a sector almost completely financed by money from the US. In this way, the Israeli public can participate in the high-tech sector. In 2015, Israeli exits totaled $9 billion, and the Israeli public reaped almost no benefit from this success, because most of the shareholders are not Israeli residents.
With the publication today of the joint announcement, Kahlon said, "Establishing mutual funds focused on high tech will encourage the investment of Israeli capital in high-tech companies; encourage an alternative to bank credit for financing the business sector, competition for sources of capital, employment , and economic growth; and generate attractive investment alternatives. The funds will be an important tool for increasing Tel Aviv Stock Exchange (TASE) trading in listed companies, thereby also boosting trading turnovers."
Hauser added, "This is an additional step in a series of measures recently approved by the Knesset aimed at encourage the business of technology companies in Israel. Establishing the funds will help promote the high-tech sector as the economy's growth engine, and encourage raising capital through the TASE, and will also help keep the centers of high-tech companies' operations in Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2016
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