Israeli pension funds have major exposure to China

The streets of Beijing / Photo: Reuters

Altshuler Shaham's pension and provident funds have by far the largest exposure of any Israeli institution to Chinese stocks.

Israeli savings and pension funds have a huge direct exposure to China , mainly through the funds of the Altshuler Shaham investment house and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) as well as through investments in public companies that manufacture in China. The Shanghai stock market fell 4.5% this morning after reopening after the Chinese New Year, as the coronavirus continues to spread throughout the country.

According to data compiled by staff at the Public Knowledge Workshop (Hasadna) headed by Dorit Hizi, most of the direct exposure to China and Hong Kong (56%) is through Exchange Traded Funds (ETFs), a further 19% is through mutual funds and 24% is through direct investments in Chinese stocks.

Data from Hasadna's Open Pension project found that Altshuler Shaham had exposure of NIS 2.7 billion as of the second half of 2019, and not necessarily today. Altshuler Shaham's provident fund has 2.5% exposure to China and its pension fund 3.1%. Altshuler Shaham said, "Last month, even before the outbreak of coronavirus, Altshuler Shaham reduced its stock exposure. As of now, it's share exposure to Chinese stocks stands at about 2.5%."

After Altshuler Shaham, Migdal had exposure of NIS 1.16 billion in assets to China and Clal Insurance NIS 616 million. Other Israeli insurance companies and investment house have relatively low exposure: The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) NIS 269 million, Psagot Investment House Ltd. NIS 208 million and Menorah Mivtachim Holdings Ltd. (TASE: MORA) Nis 208 million. Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) only has exposure of NIS 5 million.

Published by Globes, Israel business news - en.globes.co.il - on February 3, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

The streets of Beijing / Photo: Reuters
The streets of Beijing / Photo: Reuters
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