The stock market rally in 2025 boosted managed portfolios to 493 billion shekels

The rally in the local stock market pushed assets under management in the investment portfolio sector to 493 billion shekels in 2025, an increase of 18.5% compared to the volume of assets in 2024, which stood at 416 billion shekels. This emerges from the review by the Israel Securities Authority regarding companies with investment licenses engaged in consulting and managing investment portfolios.

Out of 493 billion shekels, 236 billion belong to institutional entities and 257 billion shekels to private clients. The volume of the institutional portfolio rose by 24% during the year, a higher rate compared to an increase of 14% in private portfolios. The gap stemmed, among other things, from the joining of new institutional entities as well as their higher exposure to risk assets.

Institutional entities sometimes use external investment managers as outsourcing for the purpose of exposure to certain areas of expertise. In addition, during periods of market booms, they are less in need of withdrawing funds, and their high exposure to the capital market increases the growth rate of the portfolio compared to private clients.

The sharp growth in the value of assets in the managed portfolio sector contradicts the prevailing perception that it is a sector in decline. However, a process of consolidation continues in the sector, within which large companies are strengthening and acquiring smaller companies. The ten largest companies currently manage about 72% of the assets in the sector.

At the end of 2025, about 94 thousand client portfolios were managed, an increase of about 8,000 portfolios compared to 2024. According to the review, 6,500 out of about 7,000 clients who joined during the year turned to large companies, each managing more than a thousand clients.

The Authority's data also raises a question regarding the degree of personalization in managed portfolios. According to the review, 40% of the activity for non-institutional clients is carried out through mutual funds. That is, in some cases, the client's investment portfolio is composed of mutual funds managed by an entity related to the company managing the portfolio. The phenomenon is particularly prominent in small portfolios: 74% of portfolios in which less than half a million shekels are managed are based only on mutual funds. These funds can be purchased directly on the capital market, without the need for a portfolio manager.

A portfolio based only on funds of one entity may also reduce the client's freedom of choice and tie him to the products of that same group. Reliance on mutual funds in the sector has expanded in recent years. According to a Calcalist check, in 2023 they constituted 36% of the activity, compared to 40% in 2025. The Authority acknowledges this and wrote in the review that there is an "upward trend in the value managed through investment in mutual funds in the portfolios of non-institutional clients, in all categories."

The activity of portfolio managers generated in 2025 revenues of 355 million shekels for related corporations, including entities that manage the mutual funds included in client portfolios.