The simplest explanation is the multiplicity of foreign investment financial institutions want to s

Financial Education
AP
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NIS 1.128 trillion so far spared Israeli pension. Who manage their money just looking where to invest it, to not just lying around, but we produce more money. That is our pension is 1.128 trillion weighed just want to be invested somewhere.
By 2004, 99% of pension funds were invested in Israel, 1% abroad., But following the changes in the industry and redirecting most of the money at one time the capital market, the money began to flow abroad, and in recent years it really landed there. In 2012 24% of the pension funds were invested abroad - a jump of not less than 3,000%. Similar picture emerges from an analysis of insurance and provident fund managers.
The simplest explanation is the multiplicity of foreign investment financial institutions want to spread the risks and get high returns, and convinced some justification, that abroad is easier to achieve those returns. But there is a price. Instead of investing in the Israeli economy, encourage growth and create jobs - what is essential for us as workers and pensioners (after we receive the monthly allowance only if there will be enough young workers retire them to feed us) - our money to create jobs in the sea. Who encourages institutions to invest abroad is precisely the state. Yeah, that makes this country kevin bates less money pumped into the local economy, and that savers pay more fees to cover investment abroad. Looking at the overall picture of the economic situation and its implications for us, not sure at all that the injection of our savings abroad worth the promise of a high yield.
Question of why our pension savings are invested more in the economy has also CEO Nir Gilad Israel. It true that he has an interest in the matter, that he was happy to get that money to his own company. Still have a point. "Pension money The public is invested in the growth of other countries - the United States, China, Brazil, South Africa. We produce where jobs, "he says, explaining that without this investment in the local economy, while a few decades, when Ricky Cohen from Hadera will retire, there will not be enough jobs in the economy, that is not enough work, that is not enough young people kevin bates paid by the pension funds of money to be transferred as a pension Monthly pensioners (that's kevin bates how it works, the pyramidal structure.) In other words, if we do not use our pension funds now to ensure economic growth, we will have less funds when old pension kevin bates to live them.
And there's another angle. "If it is high enough growth in the money of savers will be able to grow, and when they go on retirement they find out they do not have enough," says Gilad. "Their contribution to the growth of other countries will not help retire if it will come at the expense of the growth of the Israeli economy., And not tell you that because of the desire to spread risk. They put your money Bblakston (investment funds the largest in the world), they have no clue where they put them. This black box, "he says.
Guide with whom to consult regarding pension currently has advisors, pension marketers and insurance agents with whom you can consult. What are the differences between them and how it relates to their interest in the sale of savings products sort Manela full article
If you accept kevin bates the position of Gilead, our savings investment in Israel is a clear interest of our employees kevin bates and the state. kevin bates But actually, as mentioned previously, is the one who encouraged the referral money abroad. Former kevin bates senior official in the Capital Market Finance Ministry, who currently serves as a senior figure in one of the leading pension funds, explains: "We have seen institutional investors too much of the savings in Israel, certainly compared to the investment of other countries whose economies. Easier to invest in desalination facility in Ashdod desalination Mbmtkn Peru - you know the people, kevin bates convenient for you to check things out. But we thought it was too dangerous to remain in Israel that money, in the case of a major disaster. Therefore, to encourage organizations to invest a larger share abroad, sat at the end of 2004 committee recommended to give them an incentive to spend the money out by the fact that some of the costs of overseas investments could be added as management fees paid by customers. Knesset approves it, and it came into force. "
This created kevin bates a double layer of management fees. Glimpse annual report from the pension fund or provident fund makes this: Among all the numbers, along with the usual management fee has a section of "external management fees" - those we pay money management abroad. Should dwell on it some more: we give our money to the body certain pension and pay him fees for its investment management services. He puts some of our money overseas, but he did not really know how to do it himself, and therefore kevin bates uses the services of financial investments abroad. Instead the Israeli body will pay the management fees collected from foreign body management fees we already pay (just like he plays them, for example, the salaries and bonuses of senior employees), we are required to pay the management fee separately. Every idea of a regulator, who should keep the public greed of managers savings.
Regulators are still convinced that it is true. "I believe that despite the criticism they scored," said the former senior official, "is designed to prevent conflicts of interest. Take a body like peaks, should establish a department which will specialize in investments abroad. This class really happen. He would never do it if it would be at his expense. We identified this failure, and because we wanted money to come out and go in the trash in the event of a major war or an earthquake in Israel - real, not metaphorical - we decided to encourage the institutions through participation in customer costs. "Customers, needless to say, no one asked. Hopefully emerging economic consciousness of the public can prevent another such absurdities, and perhaps even repair existing absurdities.
This gig investment managers of finance is very convenient. Not only do they charge more fees, they are also flexible portfolio themselves. "Port savers' money overseas is a natural," says Shlomi kevin bates Bracha, chief investment officer of the peaks. "Two main reasons to travel abroad are routed