Institutional Involvement


Psagot, the largest manager of public assets in Israel, harbors fundamental principles for the protection of its clients’ rights

The institutional involvement concept led by the Psagot Investment House, is part of a comprehensive approach to investment management and corporate responsibility, with emphasis placed on complete  loyalty to the clients who convey the management of their finances with Psagot.

This concept which corresponds with the course of action taken by leading institutions in the world, aims to set high standards of conduct and corporate governance norms in capital markets, to ensure that the activities of the companies in the market and their decisions are consistent with public shareholders’ and bondholders’ interests, and in certain cases also with the interests of the community as a whole.

The main objectives of this concept of institutional involvement are to safeguard the interests of clients, to maximize return over time, to reduce risk of the investment and to improve norms in Israel’s capital market.

By virtue of Psagot being the largest manager of Israel’s public assets, coupled with the traditional role of focusing on investment management, our commitment is to protect the rights of our clients. That said, we are in constant and independent contact with the corporations in which our clients’ funds are invested.  Our intention is not to interfere in the daily running of these companies’ business but rather to engage in responsible involvement for the benefit of the clients.
In addition, we are committed to fairness and transparency, both to our clients and the companies in which the clients’ funds are invested in line with our investment principles and standards.

In light of this, Psagot formulated rules that harbor its commitments to its clients and the degree of involvement necessary by preparing an official document entitled "Institutional Involvement Convention". The publishing of the Institutional Involvement Convention is intended to define transparent rules of conduct that are straightforward and foreseeable.

In addition, an "Institutional Involvement Department" has been established under the management of an institutional involvement officer responsible for the implementation of the Convention’s principles, their update and expansion. This is the first of its kind to be found in Israel’s institutional system.

Psagot’s Convention for Institutional Involvement is Based on Five Basic Principles:

1. To set forth threshold principles related to investments in companies.
2. To continuously monitor and effectively initiate activity with the companies.
3. To prepare an independent and autonomous analysis prior to voting processes at general meetings.
4. To be actively involved and taking the lead in handling debt settlements.
5. To promote structural and regulatory changes in the capital market amid close cooperation with the

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