Analyst Kasfit Hisachon: ₪1.6 billion growth in 15 months and management fee adjustment

Analyst's MMF, launched in March 2025, reveals in a revised annual report rapid growth to approximately ₪1.6 billion in assets, alongside a fee hike and close tracking of the benchmark index.

The Analyst Kasfit Hisachon fund grew to an asset scale of approximately ₪1.59 billion in its first 15 months of operation. The annual report, filed as a correction, shows that the fund successfully raised significant capital while raising management fees, posting an annual return of 4.30%, slightly above the benchmark index.

Analyst I.M.S Mutual Funds Management's "Analyst (00) Kasfit Hisachon" mutual fund reveals impressive growth since its launch. The fund's first annual report, submitted to the Israel Securities Authority as a revised filing, provides a first detailed glimpse into its performance and management during its first 15 months of operation, indicating that it has become a significant player in the money market fund arena. The report shows that the fund accumulated assets under management of approximately ₪1.59 billion as of June 30, 2026, a figure pointing to brisk demand from investors for conservative investment solutions in the high-interest-rate environment.

Rapid growth in inflows

The fund, which commenced operations on March 26, 2025, recorded significant net inflows. According to the report, in the initial period from launch through the end of 2025, the fund raised approximately ₪2.79 billion and absorbed redemptions of approximately ₪1.42 billion, leading to a net inflow of approximately ₪1.37 billion. In the first half of 2026, the pace of inflows moderated, with receipts of approximately ₪1.33 billion and redemptions of approximately ₪1.17 billion, resulting in a net inflow of approximately ₪162 million. At the end of the reported period, assets under management in the fund stood at ₪1,590.14 million.

Performance versus the index and management fee hikes

The fund's objective is to achieve an excess return over its benchmark index, "Tel Gov-Makam". A review of performance presents a mixed picture. In the initial period through the end of 2025, the fund generated a return of 3.51%, while the benchmark index rose by 3.26% - an excess return of 0.25%. However, in the first half of 2026, the fund achieved a return of 2.00% compared to a 2.03% rise in the benchmark index, meaning a slight lag of 0.03%. For the full-year period between July 2025 and June 2026, the fund posted a shekel return of 4.30% compared to 4.21% for the benchmark index.

Alongside the growth, Analyst acted to adjust management costs. The report details two changes in management fees: on April 10, 2025, they rose from 0.07% to 0.08%, and on January 1, 2026, a further increase to 0.12% was implemented. This move is characteristic of new funds seeking to penetrate the market with attractive pricing, gradually adjusting it after accumulating critical asset mass.

Investment strategy: The corporate component

To try and beat the government Makam index, the fund, defined as a "shekel MMF with corporates", invests part of its assets in corporate bonds. The investment policy dictates that at least 75% of the fund's assets will be invested in savings assets, including government bonds and corporate bonds rated AA and above. In practice, average exposure to corporate bonds was substantial: in the period ending in December 2025, average exposure to securities included in the General Corporate Bond Index stood at 32.28%, and in the first half of 2026 it rose to 36.71%. This exposure is the fund's primary engine for generating excess return, but it also exposes investors to higher credit risk compared to money market funds that invest in Makam alone.