Awaiting peaks: 52% increase in Altshuler Shaham Gamel profits in 2020

Altshuler Shaham Provident and Pension, managed by Yair Levinstein, concludes 2020 with a standing ovation, with a net profit of NIS 138 million, with a dividend distribution of NIS 33 million and a market value of almost NIS 4 billion – all while waiting for the completion of the Psagot deal, which is expected to jump The next step in her business.

Stock Altshuler Shaham Camel Has provided a dream return of 240% since its IPO in July 2019, so that investors in the stock exchange give the company the high pricing even before the agreement to acquire the long-term savings activity of the competitor Psagot is known. This is mainly due to the tremendous and consistent growth of Altshuler Shaham Gamel, managed by Yair Levinstein, in assets managed by the provident funds, study funds and the new pension funds, against the background of a strong reputation regarding the company’s investment management capabilities.

At the end of 2020, Altshuler Shaham Gamel had 2.68 million members (of whom 1.55 million were active), compared to 2.14 million members at the end of 2019 (of which 1.33 million were active). The company prides itself on the fact that “the company showed an 88% increase in the number of members in pension funds in 2020 compared to the end of 2019,” when it comes to the investment house, this is a target market for growth.

The aforesaid increase, together with the positive returns, illustrates the rate of increase in the Company’s activities and in the assets managed by it, from which the management fees are derived. At the end of 2020, the volume of assets managed by the company was at the level of NIS 165 billion, an increase of about 41% compared to the end of 2019.

In the sum of 2020, the company charged its customers a management fee totaling NIS 897 million, a sharp increase of 31% compared to 2019. This increase completely offset a decrease in the Company’s income from investments and other income compared to 2019.

Thus, the company’s total revenue grew in the past year by more than 29%, while the company’s expenses increased by almost 23%. As a result, the company’s annual profit improved by 52%, as stated, compared with an annual profit of NIS 91 million recorded in 2019. In the fourth quarter of 2020, Altshuler Shaham Gamel earned NIS 44.5 million.

Due to the increase in the company’s activity, which hopes to absorb provident and pension peaks this year (the issue is currently up to the regulators to decide), it has experienced an increase in the number of employees in the past year. Thus, at the end of 2020 the company had 951 employees, an increase of almost 10% compared to the end of 2019.

The long-term savings management company controlled by Altshuler Shaham Investment House, headed by Ran Shaham and Gilad Altshuler, has distributed a total of NIS 219 million in dividends since its shares were first issued to the public in July 2019, even before the dividend announced today as part of the company’s dividend policy. % Of its profits.