Yellin Lapidot and Altshuler Shaham Face Massive Client Outflows in August
Yellin Lapidot recorded a monthly record of client departures with 2.2 billion shekels in negative transfers in August, matching Altshuler Shaham amid weak yields.
The crisis at Altshuler Shaham is spreading to Yellin Lapidot, which has recorded a monthly record for client departures. Yellin Lapidot's provident funds suffered negative transfers totaling 2.3 billion shekels in August, an amount nearly equal to the 2.35 billion shekels recorded by Altshuler Shaham. Negative transfers represent clients leaving for competitors, and these figures highlight the scale of the departure. Thus, Yellin Lapidot's negative transfer is a negative record for the institution, meaning such a high volume of clients has never left the firm before.
Asset Reductions and Yields
Altogether, Yellin Lapidot manages 79 billion shekels, meaning the institution redeemed 3% of its assets within a single month. Since May of last year, clients totaling 18 billion shekels have left Yellin Lapidot. Why are redemptions increasing at Yellin Lapidot? The institution is failing to post strong yields this year. For example, Yellin Lapidot's advanced training fund in the general track, the primary track where funds are managed in the sector, recorded a yield of 5.6% since the beginning of the year—the lowest among direct competitors.
Industry Trends and Competitors
As noted, Altshuler Shaham and Yellin Lapidot are the largest redeemers in the provident fund industry in August, yet as of that month, the two institutions are in opposite momentum. While Yellin Lapidot's redemptions are growing, Altshuler Shaham's redemptions are trending downward. The 2.35 billion shekels is actually the lowest monthly redemption volume recorded by the investment house since last November. Altshuler Shaham manages provident funds with assets totaling 109 billion shekels. However, the market estimates that the redemption pace may increase in the near future against the backdrop of the deal to sell control of Altshuler Shaham to the insurance company Wesure—a change in ownership that may affect depositors' decisions and the pace of transfers from the company.
