Phoenix Insurance Company has decided to dissolve Hellman Aldubi

The Phoenix Insurance Company has decided to dissolve Hellman Aldubi. After acquiring the investment house, the company agreed to sell the pension funds managed by Hellman Aldubi to Meitav Dash for NIS 45 million. The value of the purchased pension funds is about NIS 4.34 billion, as of the end of January. Ayalon Meitav manages about NIS 14.6 billion in its pension fund. In other words, the new player that will be created will manage about NIS 19 billion.
Hellman Aldubi merged into the Phoenix at a value of NIS 275 million. Hellman Aldubi's revenues in the first three quarters amounted to NIS 123 million, and the investment house invested NIS 18 million in the pension sector during this period. In an annual outline, Meitav Dash purchases the pension funds at a two-year income multiplier, a ratio that is relatively low for the capital market and slightly lower than the multiplier at which the Phoenix purchased the entire investment house.
In accordance with the sale agreement of the funds, Meitav Dash will purchase from the seller the full rights in the sold pension funds and all the rights. Following the acquisition, two players will remain in the pension industry, originating from investment houses and not an insurance company, the Altshuler Shaham fund and the Meitav Dash fund. Both funds are characterized by low management fees as a condition of being default funds. In addition, the low management fee may be the reason for the low price at which the pension fund is sold to Meitav Dash.
Teddy Lynn, CEO of Meitav Dash Provident and Pension: “The acquisition of Hellman Aldubi's new pension funds is another tier in the continuous growth strategy of the pension funds managed by Meitav Dash. The long-term savings area, and pensions in particular, is an engine of growth for the company and upon completion of the acquisition, the company will manage members' assets worth approximately NIS 20 billion in the pension funds. We believe that expanding the circle of employers and customers we work with, and continuing to lead in performance, will accelerate the company's growth. "