Not only Altshuler Shaham: The crisis spreads to Yelin Lapidot which records a monthly record in customer departures
The trust crisis in the Israeli provident fund industry is spreading: Yelin Lapidot recorded a negative record in August with customer departures totaling 2.2 billion shekels, nearly matching Altshuler Shaham. The firm redeemed 3% of its assets in one month. The main reason: lower returns compared to competitors. In contrast, Altshuler Shaham is seeing a decline in redemptions, but market assessments suggest that the deal to sell control could change the trend.
The crisis of confidence in the Israeli provident fund industry is expanding: Yelin Lapidot recorded a negative record in August with customer departures, posting negative net flows of 2.2 billion shekels – almost identical to Altshuler Shaham's 2.35 billion shekels. This is a negative record for Yelin Lapidot, which has never experienced such a high volume of departures. The firm, managing 79 billion shekels, redeemed 3% of its assets in a single month. Since May 2025, customers have left Yelin Lapidot with a cumulative total of 18 billion shekels. The main reason: low returns. Yelin Lapidot's general track provident fund posted a return of 5.6% since the start of the year – the lowest among direct competitors. In contrast, Altshuler Shaham, managing 109 billion shekels, is actually seeing a declining trend in redemptions – 2.35 billion shekels in August is the lowest figure since November. However, market assessments indicate that the pace of redemptions may increase following the deal to sell control of Altshuler Shaham to Vishor. This week, Gilad Altshuler held an emergency meeting with insurance agents, and Emil Weinshal from Vishor criticized agents with a 'non-professional agenda'. On the positive side, Clal Insurance raised 1.6 billion shekels, Meitav 1.5 billion, Migdal 1.1 billion, and Harel 1 billion shekels. Ayalon, in its first month of operation, raised 826 million shekels. Phoenix moved to redemptions of about 200 million shekels, and More Investment House recorded slight redemptions of 148 million shekels after months of fundraising.