Giants clash in the debt market: Harel and Phoenix show mixed activity in the same bond series

A filing by Harel reveals how it and its rival Phoenix adopt different, and at times contradictory, strategies in the exact same security. While one arm buys, the other sells.

A holdings report by Harel Investments reveals active and mixed trading by itself and Phoenix Group in the same corporate bond series. While Harel's mutual funds increased their holding, the group's nostro account liquidated its long position. Meanwhile, Phoenix was a net buyer, mainly through its mutual funds and provident funds, demonstrating the divergent strategies operating among Israel's financial giants.

Two of Israel's largest insurance and financial groups, Harel and Phoenix, conducted active and conflicting trading in the same corporate bond series (Series A bonds, security number 5850110), according to a holdings report filed by Harel to the stock exchange. The report, as of September 30, 2026, provides a rare glimpse into the different, and at times contradictory, investment strategies operating simultaneously not only between the two rivals, but also within the investment arms of the same group.

### Conflicting moves within Harel
Within Harel Group, a mixed picture emerged. On one hand, Harel Mutual Funds Ltd. increased its holding in the series by purchasing 186,235 units, bringing its total holdings to over 44 million units. On the other hand, the group's nostro account (Harel Nostro Interested Parties) took the opposite move and liquidated its entire holding in the security, selling 313,859 units. This move left the nostro account with a negligible negative balance of -115 units, indicating the closure of a long position it previously held.

### Phoenix increases exposure
On the other side of the fence, Phoenix Group was the primary net buyer of the bonds during that period. The group's mutual fund arm (Phoenix Investment House Ltd.) executed the largest purchase among the reporting entities, adding approximately 1.56 million units to its holding. This purchase brought Phoenix's mutual fund holdings to nearly 56 million units. In addition, Phoenix's provident funds (Phoenix Finance Ltd.) also purchased approximately 22,840 units, increasing their total holdings to over 59.2 million units. The only activity on the selling side within Phoenix Group came from its market maker arm, which sold approximately 46,511 units, a move typical of activity aimed at providing liquidity for ongoing trading.

### Different strategies, one goal
The described activity, which does not disclose the identity of the company that issued the bonds, well demonstrates the different mandates of each investment arm. While provident funds and mutual funds generally operate with a longer investment horizon, nostro accounts and market makers operate in shorter terms and respond to liquidity needs or targeted trading opportunities. The overall picture shows that while Harel reduced its net exposure to the bonds, Phoenix actually increased it significantly, indicating the two groups' differing assessments of the security's attractiveness at that time.