A securities account within a client's bank account managed by a dedicated portfolio manager, who receives power of attorney to deal in assets such as shares, bonds, and mutual fund units. In Israel a portfolio manager will usually hold a license from the Israel Securities Authority and the broker administering the portfolio management service must hold the requisite license as well.
The power of attorney to a portfolio manager is given solely for the purpose of buying and selling and securities in your portfolio.
There are a number of important differences. First, a portfolio manager has a much broader professional remit than a financial adviser who can only give advice on how to invest your income. A portfolio manager, on the other hand, has power of attorney to deal in securities on your behalf and responds to changing market conditions as they occur.
Another key difference between a portfolio manager and a financial adviser is in caseload. A financial adviser based at a bank branch can handle up to 350 clients and may also be required to fill additional roles. The number of clients assigned to each portfolio manager at IBI is considerably smaller, which means clients enjoy a prompt and more personalized level of service. All our managers attend the weekly meetings of our in - house investment committee and draw on the input from these sessions as well as the analysis of our in - house research team.
Fee structures are quite different as well. Bank customers are usually charged depositary fees on top of the usual commission on securities transactions. At IBI, we offer clients a reduced fee scale thus enabling them to save on portfolio management costs.
Yes. All our managers are licensed by the Israel Securities Authority and having an outstanding team of professionals has been a key factor in our success ever since the firm started out in 1971. Our team is headed by Roni Pilo, who has over 20 years' experience in the capital markets.
We make it our business to gain an understanding of our clients' needs and to find the asset classes best suited to them. Your portfolio manager is your single access point to provide you with individually tailored advice and support from the moment you open your account with us.
Investment strategy is set and reviewed on a weekly basis by the main investment committee, led by our chief investment officer and which all our portfolio managers attend. The committee considers those events that could potentially have an impact on the various asset classes, such as local and overseas equities, sovereign bonds and corporates, as well as current trends in interest rates, inflation, growth and other key macroeconomic metrics in Israel and internationally. The conclusions and estimates that the committee arrives at during this process of consultation then serve as the basis on which asset weighting is determined right down to the individual equity or bond.
Yes. You can change the way your portfolio is managed at any time by contacting your dedicated portfolio manager.
The cost of managing your investments will depend on the size of your portfolio and your preferred investment strategy. This will be agreed with you upfront when you open your account.
You will not be subject to dual charges if your portfolio includes units in IBI mutual funds. In these instances you will be charged the management fees stipulated by the fund in its prospectus.
Yes. A securities portfolio is liquid so you can withdraw money from your account or make a deposit at any time.
You can keep track of your investments by either logging on to your bank account online or accessing your individual center on our secure website.
Our portfolios start from NIS 350,000 and $250,000 for portfolios containing overseas assets only.
A provident fund is a long - term savings instrument that enjoys tax benefits and in which people can either save privately or as a work - related savings scheme into which the employer also makes regular contributions. The funds can be withdrawn as a lump sum or in several portions in accordance with the timeline set by law, or paid out as a regular income following retirement. Following a change in statutory provisions, all provident fund contributions made subsequent to January 1, 2008 will be accrued and paid out as a benefit upon retirement.
An advanced training fund is a medium - to - long term savings instrument from which savers can withdraw the entire amount after six years. Advanced training funds enjoy a tax benefit that no other savings instrument has - profits are exempt from capital gains tax (25%).
Under current tax regulations, savers aged 60 and over can withdraw their money after three years only and will still qualify for the exemption from capital gains tax, even if they intend to use the money to cover education and tuition fees, provided this is possible under the fund's management rules.
If you have savings in more than one advanced training fund you can withdraw money from the 'younger' of the two funds assuming you have sufficient liquidity in the older fund. Contributions made subsequent to such a withdrawal shall be considered as having been made at the beginning of the term and thus be classed as liquid after the full six years.
Important to remember: You are not obliged to withdraw your savings after six years and you can, if you wish, keep the scheme going in which case you will remain eligible for the tax break and will continue to benefit from the fund's performance.
In an advanced training fund for payroll employees, the employee pays in a monthly contribution which is deducted from his salary and the employer makes a matching contribution at a ratio of 3:1. Funds accrued be withdrawn before the full - term, subject to income tax regulations and the fund's management rules.
An advanced training fund for self - employed people is intended solely for people who have an income from a business or occupation. Such individuals can make regular contributions from their income up to the statutory ceiling laid down by the Income Tax Ordinance.
The State of Israel wants to encourage people to save towards their retirement and has therefore granted savers tax breaks on deposits, accrued savings and the allowance they receive upon retirement. We recommend that you consult a qualified adviser who can help you take full advantage of the tax benefits you may be entitled to.
Payroll and self - contribution provident funds.These funds enable employees to make monthly contributions from the salaries with their employers making a corresponding contribution. Self - contributing savers can either make regular contributions or pay in a lump sum. These funds can also be used as an individual severance pay contributory scheme where an employer can set aside funds to cover severance pay due to an employee upon dismissal in a dedicated account in the employee's name.
Advanced training funds for payroll employees and the self - employed. In an advanced training fund for payroll employees, the employee pays in a monthly contribution which is deducted from his salary and the employer makes a matching contribution at a ratio of 3:1. An advanced training fund for self - employed people is intended solely for people who have an income from a business or occupation.
Central severance pay funds. A dedicated vehicle in which employers can hold funds to cover his liability for severance pay to employees.
We employ a number of different investment strategies, some which are active (i.e. manager - directed), and others passive (such as index tracking). We will help you identify the strategy best suited to your needs.
Our funds' performance can be tracked via the Ministry of Finance's dedicated website at: gemelnet.mof.gov.il. If you wish to arrange a personal consultation with one of our advisers you can call us on *6212 or email us at: Gemel4u@ibi.co.il
An index is a tool that reflects the average price level of a select group of securities (stocks, corporate bonds, government bonds etc.) traded on stock exchanges worldwide. The changes in such indices reflect the return for investors during a trading day and over time. In Israel, index performance is calculated jointly by the Tel Aviv Stock Exchange and the Central Bureau of Statistics.
Indices also serve as an important tool with which to assess the performance of portfolio and investment managers. Investors will expect their portfolio managers to 'beat' a particular index by holding the securities quoted on that index in proportions different from that of their weight on the index itself.
One method frequently used in portfolio management is to invest in 'index - tracking' products. These are financial instruments (such as ETNs or ETFs) which peg the assets held therein to a known index by purchasing its constituent securities. This is the standard model in the US and it has now been adopted by the Israeli capital market as well following a number of changes to suit the characteristics of the capital market here.
The aim of an index - tracking instrument is to replicate the performance of a selected index thereby achieving a similar return that on the index itself. By using an instrument that is pegged to the performance of an index, an investor can eliminate risks, such as a company bankruptcy, that he would usually assume when investing in small number of assets.
Recent years have seen an increase in the popularity of financial instruments that track indices and commodity prices and investors now find it quite easy to buy 'packages' of publicly quoted indices at reasonable prices.
Index - tracking provident or advanced training funds are 'linked' to the performance of broad market indices and enable investors to follow the performance of a particular index or specific bonds or stocks. I.B.I. is the first investment house in Israel to offer tracker provident and advanced training funds.
Switching from one form of investment to another is quick and straightforward. All you need to do is complete the investment transfer application form downloadable here and send it back to us by mail, fax or email and we will facilitate the transfer within three business days from the time the application reaches us (as pre Ministry of Finance regulations).
You can transfer your savings over to us at any time, provided that there are no encumbrances on your account due to a loan, attachment or charge. All you need to do is download and complete an account application form and a transfer request form and send it back to us by mail, fax or email and we will contact your current broker or investment manager and arrange for your savings to be transferred over to us as instructed. You can also make an appointment with one of our advisers to discuss arrangements. Call us on *6212 or email us at Gemel4u@ibi.co.il for further details.
To download the form click here.
Yes. You need to complete and sign a transfer cancellation request and get it to us within 18 business days from the date you make the application. Your instruction will then be cancelled.
To download the form click here.
As a rule management companies collect management fees from both the accumulated balance of a pension savings account and the deposits therein. At IBI however, we collect management fees for savings in provident and advanced training funds from deposits only.
Our maximum management fees are 1.05% per annum for provident funds and 1.1% for advanced training funds.
The advantage of pension savings schemes is that the state wants people to save for their retirement and gives tax breaks on deposits, accumulated balances and the income drawn in the form of a pension upon reaching retirement age.
When completing your application form you may name a designated beneficiary or beneficiaries to whom you wish to leave your savings after you die. If you do not name any beneficiaries the money will be transferred to your legal heirs. You can give us written notice at any time if you wish to change the beneficiaries to your savings. Each beneficiary can withdraw his share of the funds immediately or continue saving and either withdraw the balance as a lump sum or accumulate the funds as pension pot (in accordance with and subject to the provisions of amendment 190 to the Income Tax Ordinance 1961).
Every employer is required under the Severance Pay Law to pay compensation to employees who are entitled to severance pay when they leave their jobs. An employee's entitlement to statutory severance increases in line with the length of service and central severance pay funds enable employers to set aside funds from which to pay out severance pay to employees when necessary.
Central severance pay fund:
Personal severance pay fund:
When the saver retires from full time employment - Provided the appropriate authorization has been given
If the saver dies - Funds will be paid out to his legal heirs