Altshuler Shaham Sees NIS 200 Million Net Outflows in September
Altshuler Shaham recorded net outflows of nearly NIS 200 million in September, ending months of strong fundraising as the firm announced a major corporate restructuring and split of its provident and pension operations.
Altshuler Shaham closed September with net outflows of nearly NIS 200 million in its mutual funds, marking the first month since June 2025 that the investment house experienced more withdrawals than inflows. During the first half of the year, Altshuler Shaham had been among the sector's top fundraisers.
Outflows Across Traditional and Money-Market Funds
In September, outflows were recorded simultaneously in the two main categories for the first time this year. Traditional funds saw redemptions of NIS 126 million, while money-market funds experienced outflows of NIS 104 million, totaling approximately NIS 230 million. Conversely, passive tracking funds attracted NIS 32 million. In total, Altshuler Shaham's mutual fund management company oversees nearly NIS 28 billion.
Traditional funds have faced persistent outflows throughout the year, with total redemptions reaching NIS 772 million by the end of September. However, the more significant shift occurred in money-market funds, which typically serve as a liquid alternative to bank deposits. Following an aggressive strategy launched in July 2025 featuring exceptionally low management fees of 0.06%, the firm raked in billions of shekels, accumulating NIS 8.6 billion in net inflows by the end of August.
"The reversal in the money-market category is a notable indicator, as this was the specific avenue where Altshuler Shaham successfully leveraged its brand strength and pricing to attract massive capital earlier in the year."
Corporate Restructuring and Market Uncertainty
The September outflow coincided with a major corporate restructuring. During the month, a deal was finalized to split Altshuler Shaham: its provident and pension fund activities are being sold, while the investment house and other operations, including mutual funds, remain under the management of Gilad Altshuler and Kalman Shaham.
The transaction follows a prolonged period of heavy redemptions in the firm's provident fund division due to transfers to competing funds. To mitigate uncertainty, the investment house held an emergency webinar for insurance agents following the announcement to explain the deal's structure and prevent capital flight to competitors.
