Managed Portfolio Combined with Hedge Funds In Trust
The Managed Portfolio Combined with Hedge Funds in Trust is an investment portfolio that combines several hedge funds in trust of Meitav Mutual Funds. The portfolio is intended for clients with ILS 300,000 or more in funds available for investment. It allows private investors to benefit from sophisticated investment strategies typically used in hedge funds while complying with regulation, transparency, tax advantages and generally higher liquidity* compared to private hedge funds.
Questions & Answers
The portfolio is designed for private investors with ILS 300,000 or more available funds for investment. There is no requirement to be an Accredited Investor.
A private hedge fund typically operates as a limited partnership, without regulatory oversight and without full transparency. In contrast, a Managed Portfolio Combined with Hedge Funds in Trust is a portfolio that combines several selected hedge funds in trust, incorporating the principle of risk diversification**. All this is done under strict regulatory oversight, with the advantages of transparency, liquidity*, and tax benefits.
There is a tax advantage with hedge funds in trust in relation to private hedge funds. In a hedge fund in trust, the tax payment of 25% on real profits is deferred until the sale date, allowing maximization of the compound interest effect. This is unlike private hedge funds, where the tax is deducted at the end of each year, even if the profit is not realized, and the tax rate is 30% on real profits.
- Access to the hedge fund universe: You Invest in sophisticated instruments with strategies previously reserved for large investors, now available to you.
- Designed for private investors: A smart solution for those seeking an advanced alternative for investment in the capital market.
- Professional management and risk diversification**: The portfolio is managed by professional investment managers and consists of several selected hedge funds.
- Transparency and regulatory oversight: Investments with ongoing reporting under the supervision of the Israel Securities Authority.
Absolutely. While private hedge funds often require investors to commit for months or even years, a Managed Portfolio Combined with Hedge Funds in Trust offers higher liquidity* with predetermined entry and exit dates.
- Investors with a medium - to long-term outlook seeking a stable investment portfolio.
- Individuals looking for a regulated and transparent investment product – a Managed Portfolio Combined with Hedge Funds in Trust operates under the strict regulation of the Israel Securities Authority.
- Investors seeking improved liquidity* compared to private hedge
- funds, which require long commitment periods.
* Meitav’s hedge funds in trust are fixed-date funds: the last price calculation day of the fund is in each calendar month only.
** As of March 2, 2025, Meitav has three hedge funds in trust.
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The service is provided by Meitav Portfolio Management Ltd. The information given on this page is for informational purposes only and should not be construed as factual or comprehensive about everything mentioned herein. Therefore, no investment decisions should be made based solely on this information. The above does not constitute an offer to purchase units in mutual funds. The purchase of units in mutual funds is based on the main prospectus, annual report and immediate reports in effect. The above does not constitute investment advice and/or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing, and Portfolio Management Law, 5755-1995, and/or a substitute for such. The above does not express an opinion regarding the profitability of any investment, a substitute for the individual judgment of any person considering the opportunities and risks inherent in any investment, or a substitute for advice tailored to the specific data and needs of any person, or a substitute for professional advice and guidance by those authorized to provide it. The information detailed above does not guarantee any return and should not be considered a recommendation, opinion or substitute for professional advice (economic, legal, tax, etc.). The Meitav Group and/or any affiliated company shall not be liable to any person and/or corporation for any damage that may be caused as a result of using or relying on this publication. Anyone using the above information does so on their own judgment and sole responsibility.