The bank completed the sale of its provident fund business to teachers' unions.
Bank Massad has completed the sale of its Dafna Provident Fund to the Histadrut Teachers Union and the Association of Secondary School Teachers for NIS 2.5 million. Dafna Provident Fund has NIS 2.5 billion in assets under management.
The unions will split Dafna Provident Fund into two funds: 60% will go to the Histadrut Teachers Union and 40% to the Association of Secondary School Teachers. Each union will manage a provident fund for its members through a separate management company. Bank Massad will continue to operate the funds in exchange for a fee of 0.1% a year.
With the completion of the sale, Bank Massad, now a subsidiary of First International Bank of Israel (TASE: FTIN1;FTIN5), will be able to provide pension advice. The bank is expected to apply for a license to the Ministry of Finance Supervisor of Capital Markets, Insurance and Savings.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2008
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