Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) today announced a change in its investment management strategy for long-term risk instruments. The company intends to switch its pension investments - managers' insurance, and pension and provident funds - from direct investments, which it manages, to index funds based on clients' risk profiles. These investments will be automatically updated over time.
Phoenix will invest only in index funds that are traded in Israel or overseas via Exchange Traded Funds (ETFs) or index-tracking products baskets. The goal is to mimic market returns, in contrast to the current investment concept employed by Phoenix and other pension managers, which includes direct investments, attempts to play capital market rises and falls, and a high proportion of non-marketable assets.
Phoenix will also provide investors in the new investment packages a kind of personal life cycle savings plan that automatically adjusts to the investor's age and risk profile.
Phoenix CEO Yali Sheffi said, "We'll offer a personal pension portfolio based on indices, and we'll manage a customized plan for each client, based on age, taste for risk, and other factors."
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2009
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