A pension fund with an investments mix adapted to all ages based on the "Chilean model".
A new pension fund is entitled to receive designated Government bonds on 30% of the accumulated assets, while the fund invests the remainder of the money in the capital market. As a direct consequence, a dynamic investments management is required in order to achieve two targets:
- First, to accumulate as many assets at possible
- Second, to protect the portfolio as retirement age nears.
For that purpose the fund must try and achieve the highest yield in the many savings years (exploiting the compound interest effect), and to retain the accumulated savings as retirement age comes closer. The investment programs according to age groups exempt the member from the need to make changes in the investments mix of the pension savings as he progresses in years.
Investment Programs According to Age-Groups
Pension saving is for the long-term and a young investor has a range of 40 years more than an older person who is a few years before retirement age, therefore there is a need to distinguish between a person who is at the saving stage and one who is about to take his money - the pensioner.
How is the Fund Adapted to the Personal Needs of its Members?
The fund runs four investment programs adapted to various age groups. The members have the right to move from one program to another at their choice at any time!
| For whom the program is designated |
Up to age 35 |
From age 35 to 5 years before retirement |
From 5 years before retirement age up to retirement age |
From retirement age to actual retirement |
| Investment channels |
Preference for shares, bonds / debentures (government or corporate) in a relatively long-term savings program, non-negotiable assets, exposure to companies just starting out, for whom a long maturing period is expected, with emphasis on companies specializing in extending and improving life expectancy |
Preference for shares, bonds / debentures (government or corporate), in a relatively intermediate and long-term savings program, non-negotiable assets |
Limited with respect to shares, debentures, in a short-term, high-liquidity savings program |
No shares, full liquidity, limited risk |
What is the Significance?
Halman-Aldubi Comprehensive Pension Fund is the first pension fund in Israel to adopt the age-group investments management model. The Fund distinguishes between members at the accumulation stage and members at the retirement stage, while transition between investment programs is made according to age-group. The aim is to adapt the investment range of the savings money in direct proportion to the saving or consumption period.
At the same time, a member has the right to transfer at any time from one program to another that is different from his default program, at his own discretion!
The purposes of the Pension Fund are to try and achieve a surplus yield in the course of the accumulation period while protecting these yields close to retirement age, without forcing the client to remember when to change programs.
* Members' rights under the Fund's regulations * The information is given only in order to draw attention to it and does not constitute counseling of any kind whatsoever. This information does not constitute a substitute for investments marketing and/or pension marketing which takes account of the special terms and needs of every person. The information is general and condense. The above information is correct as at the date of publication thereof, and it does not exhaust or purport to exhaust the total legislation and/or rulings relevant to the information presented. The presentation in this document might change from time to time, and the Company is not responsible for updating it and/or publishing any change as aforesaid.