In addition to the current English Tel Aviv Stock Exchange (TASE) website, on June 29, 2020 the TASE announced the launch of the English version of its “MAYA” immediate corporate reporting website. The English “MAYA” website is designed to make information regarding the TASE and the companies listed on it much more accessible to foreign investors, particularly in light of the growing interest expressed by investors from around the world in Israeli companies. There are 517 publicly traded Israeli stocks, 750 corporate bonds, 45 government bonds, 549 ETFs, and 1,169 open-ended mutual funds listed on the TASE that can be purchased by investors around the world.

For the first time, TASE is launching an English version of the MAYA website. The Israel Securities Authority (ISA) encourages companies to publish their reports in English as well, in order to make the information accessible to foreign investors. Corporate reporting includes, among others, notifications concerning announcements & transactions, financial statements, capital raising information, changes in the companies' management, interested parties, corporate actions, splits, mergers and more. These disclosures will be posted on the MAYA English language website, generating additional foreign investor exposure to these companies.

To serve this growing needs of international investors in Israel in English, Wise Money Israel Ltd (WMI) works closely with hundreds of clients from around the globe to invest in Israel's robust economy and strong capital market through Israeli investment accounts on the TASE. Where there is demand, there will also be supply, and the demand for purchasing equities and bonds of publicly-traded Israeli companies is rapidly rising. Accordingly, the TASE is continually adding new features and making information more accessible to the international investor, while WMI is positioned as the leading, ISA-licensed English-speaking Portfolio Management firm to manage local and international investors assets in the Israeli market in a prudent and effective way.

The MAYA website, which serves as a central website for investors active in the Israeli capital market, was initially launched in 2000 and is the go-to site for a wide array of corporate information such as corporate fact sheets for each company, summarizing key corporate information (fields of operation, principal shareholders, corporate securities and financial performance), management and officers, corporate filings, reference and payment dates, IPO and new secondary public offerings, financial report schedules, dividend distributions and payments, and more. The TASE also posts its own announcements on the "MAYA" site, such as general announcements, board of director resolutions, etc.

The TASE places great importance in the publication of disclosures in both English and Hebrew and believes that this will increase foreign investor exposure to and investment in TASE-listed Israeli companies.

To view the English MAYA system click the following link: https://maya.tase.co.il/en

Contact us for more information about opening an Israeli investment account

To invite a speaker click here.

_____
Sources:
Tel Aviv Stock Exchange, Bizportal Terminal 360

The post TASE Signals to International Investors appeared first on Wise Money Israel.

The current rate of advancement on this front point to a very feasible possibility of a fully autonomous automobile being developed in the coming years. And, as in numerous other occasions, it happened to be Israeli firms that have been making valuable contributions in this high-tech sector.

Following the success story of MobileEye, the Israeli technology sector has once again proved to be a fertile ground for the international investor community. Not surprisingly, another key player appears to be emerging on the stage – Foresight Autonomous Holdings. Launched as a spinoff from Magna BSP back in 2015 (the Home Land Security solutions company which specializes in stereo vision systems), the firm has been making headlines of late. Foresight is a developer of solutions for advanced driver assistance (ADAS) and fully autonomous (FA) driving applications, which is based on stereo and quadric camera algorithms. Foresight is not a regular hi-tech firm since its technology originates from Israel’s successful defence industry.

Despite its relatively small size, the company aims to further advance in the autonomous car sector through its artificial sensing technology as the industry moves toward a higher degree of autonomous driving. The fact that the company is just two years old, should not be a reason for concern as the team backing this enterprise has a proven track record of success. During recent years, its parent company, Magna BSP, has developed over ten adaptable passive electro-optic radar security systems. This technology is currently used to protect some of the most sensitive industrial and governmental facilities in Israel and around the world. Imagine that the very same technology used by the Israeli military is now operating in Foresight. Actually, to be more specific, its ADAS system is based on Magna’s unique radar system – Stereoscopy. Both the ADAS system and the perimeter security radar function very similarly – both have two cameras employed in the process to cover the same field of sight, providing an impeccable panoramic 3D view. A specially developed software, which is installed in the vehicle, supplies the driver with real-time alerts in all weather conditions. Moreover, its uniquely developed algorithm is capable to map objects as little as 50cm, providing a driving experience unlike any other.

Earlier this year, Foresight showcased its leading product , QuadSight™, at the prestigious Consumer Electronics Show. With the device demonstrating near 100% obstacle detection and near zero false alerts, the company is now looking far beyond the Israeli market.

Furthermore, the Chinese government has approved new regulations directed to boost the usage of ADAS by 2020, and Foresight seems to be well placed to reap the benefits from these recent changes. The company has already completed successful pilot trials with three major Chinese OME. As a result, a leading global Chinese electric vehicle manufacturer has ordered a prototype of QuadSight vision system. In addition, a truck division of a large European car manufacturer has also purchased the system in order to evaluate its performance on vehicles it produces.

It may still be early days for Foresight and it yet to generate profit, but its unique technology has already roused interest from key players in the automotive industry. Time will tell how greatly the company fares, but so far, the firm has proved to be more than capable to deliver on its promises.

Sources: Globes magnabsp.com foresightauto.com news.techtime.co.il businesswire.com edisoninvestmentresearch.com

The post Using Military Tech In Creating Safer Driving Experience appeared first on Wise Money Israel.

However, don’t let appearances deceive you. Despite the lack of the physical presence on the map, Israel is considered a giant in the high-tech sector. It has the highest concentration of startups in the world after Silicon Valley. Household names such as Mobileye, the Waze navigation app, Cloud-based web development platform Wix and many others have their origins in Israel. Not surprisingly, for decades the country has maintained its reputation of an entrepreneurial hub for the high-tech industry.

Albeit, High-tech is not the only industry attracting companies and investors to Israel. Unknown to many, more than 270 multinational corporations have established over 320 advanced R&D facilities throughout the Jewish State, essentially making this small country a key part for their success. Some of the world’s leading technology enterprises such as Facebook, Siemens, Apple, Microsoft, Google, Intel, IBM, Yahoo!, HP, Motorola, GE, GM, Cisco and many more have made their presence felt in Israel. These multinationals do not just boost the local economy, they employ roughly half of country's hi-tech workforce.

The actual number of American multinationals who have representation in Israel exceeds 200. So, what are the main reasons that US high-tech companies, and an increasing number of others, choose to invest heavily in this Middle-Eastern country.

1. People. Israelis are famous for their "hutzpah". They are not shy to challenge their superiors and their never-take-no-for-an-answer attitude is almost a norm. Combined with innovation and creativity, Israel’s workforce is a key reason why so many multinationals are so eager to be here. It is, therefore, not surprising that Israel has the highest concentration of engineers and PhD’s per capita in the world.
2. Innovation. Surrounded by hostile nations, Israel had no choice but to become inventive on all fronts of life. They say that “necessity is the mother of invention”, and in line with that, Israel has become a global powerhouse for new technologies and innovation. Israeli achievements in Fin-tech, military, health and medicine, internet, cyber security and other fields are renown around the globe.
3. Startups. Innovation and a highly educated workforce foster a fertile ground for startups. This has become a doorway for many leading technological companies to establish beachheads on Israeli soil. Through acquisition of local startups, some large companies have already turned them into innovation centers while others are merged in order to fortify already existing research and development departments. Ever since establishing their presence in Israel over forty years ago, IBM has purchased more than a dozen local companies. According to the latest figures Israeli startups raised $1.52 billion in 181 deals in the first quarter of 2018, compared with $1.46 billion in 161 deals in the preceding quarter and $1.06 billion in 155 deals in the first quarter of 2017 as reported by Globes survey of the IVC- Zysman, Aharoni, Gayer & Co. law firm (ZAG).
4. Cutting-Edge Manufacturing. Due to its success in high-tech, Israel has some of the most advanced manufacturing facilities in the world. It is one of the leaders in the automotive technology industry. Israel has over 250 innovative aftermarket suppliers whose products range from spare parts to accessories. In agricultural technology, more than 25 companies manufacture seeds and develop innovative solutions, including irrigation. Over 3 million acres of farmland in the United States use agricultural equipment and methods produced by the Israeli agri-tech firm Netafim, which was also recently acquired by Mexichem for $1.5billion. Another good example is Intel, which has been operating in Israel for the last four decades and is currently the largest tech employer in the country, with six locations across the nation employing a workforce exceeding 10,000. We cannot leave out pharmaceutical giant Teva who continues to lead as the world's largest generic drug manufacturer.
5. Stable Economy. During the last global economic crisis, Israel's economy managed to avoid recession. It has seen consecutive years of rising international credit rankings from all three major credit ranking organizations and its GDP growth, which at times beat even those of the OECD nations and the U.S.
   The latest drop in unemployment rate continues to underline resilient economic growth and despite geopolitical instability in the region, the Israeli economy has been recognized as one of the most stable in the world.

The above are not the only factors behind Israel’s admirable achievements in multiple disciplines and industries, but they certainly make a compelling case for the world’s technological heavyweights to establish their presence in this small country.

Not only large companies can invest in Israel, but now through the Israeli capital market so can individuals, IRA holders, non-profit organizations and small, medium and large businesses and partnerships. Israeli is a compelling case for investing for the large firms and the sole investor alike.

The post A Compelling Case for Israel appeared first on Wise Money Israel.

Looking back to the past 70 years, and even beyond that, tell an amazing story of faith, hardships, perseverance, morality, resilience, resolve, comradery and much more that clearly points towards Israel’s bright and promising future. This is a unique opportunity in time to honour and celebrate Israel’s amazing achievements and progress.

To appreciate Israel’s standing today, we need to recall what it sprouted from. Just before the turn of the previous century, Israel (then called “Palestine”) was nothing but a desolate desert of sand, rocks, ruins and Malaria infested swamps. When Mark Twain travelled through the land in the 19^th century he described the land as “desolate and unlovely”, “devoid of inhabitants” where “one may ride ten miles hereabouts and not see ten human beings”. Others who travelled through the land also recorded similar descriptions.

Since then waves of Jewish immigration began to hit the Israel’s shores as the first pioneers turned the desert into fertile land, dried up the swamps, built roads, cities, schools, universities and infrastructure, albeit not without tremendous opposition. As soon as David Ben-Gurion declared Israel to be a homeland for the Jewish people it came under attack by an overwhelming number of Arab armies. Israel not only overcame an almost definite defeat but increased its territory significantly.

In the years that followed Israel triumphed in many additional military conflicts, some of them on multiple front simultaneously, and has become an internationally recognized military powerhouse that contributes volumes to the security of dozens of nations, most of the time without the knowledge of their own citizens! Nations flock to Israel to seek its game-changing military and defence systems such as the world renown Iron Dome, UAV’s, optic and vision devices and much more.

Israel’s economy has developed into a leading economy, and despite being barely 70 years old, has been defined as a “Developed Economy” for years, and is part of the OECD nations. Its international credit ranking has been upgraded multiple times by all three major credit ranking agencies (S&P’s, Moody’s and Fitch Ratings) with a current A+, Stable outlook.

Israel’s market is booming with a multitude of technologies and solutions that affect the daily lives of countless people all over the world in many facets of life. Of the world’s six largest companies in the world, five of them have significant R&D centres in Israel (Apple, Alphabet Inc. - Google’s parent company, Microsoft, Amazon and Facebook), and the sixth, Warren Buffet’s Berkshire Hathaway, has made significant investments in Israel. In fact, their first major purchase of a foreign company outside of the U.S. was done in Israel!

Through agricultural technologies, water saving, desalination and production, Israel is changing the lives of farmers all over the globe, especially in rural nations where the population majority live off the produce of their land. Israel recycles 90% of its wastewater and is ranked first in the world for this capability. The second nation, Spain, recycles less than 20%! Now Israel is teaching other nations with water shortages how to do the same thing. Not only saving water but also producing it out of nowhere! WaterGen, an Israeli company, has developed a technology that extracts water from the humidity in the air, making it possible for families in Africa to drink clean, fresh water daily without walking for hours to the nearest well.

Do you use Google Maps or Waze? Social Navigation was created by Israelis. The popular social-based navigation App “Waze” was developed in Israel and later purchased by Google for a reported $1.6 Billion. Presently, the Israeli Waze technology that allows drivers to avoid traffic jams, reports hazards and know in advance of speed cameras is the underlying technology for Google Maps as well.

In the coming years we will see the first autonomous cars rolling into the markets. The joint venture between several companies from different industries will revolutionize the automobile industry, and perhaps life as we know it. BMW is supplies the vehicles, Intel the processing power, but the core technology that will allow cars to drive themselves is being developed by Mobileye. This Israeli company with its headquarters located in Jerusalem, was purchased by Intel for a staggering $15 Billion USD in 2017.

Volumes more could be written about Israel’s achievements as a nation over the past 70 years, socially, militarily, economically and politically. But the point is clear – Israel has thrived and despite its small size in land and population, constant threats and challenges, it has risen over them and is influencing the world far beyond its weight.

We salute Israel on its 70^th birthday and look forward to the next 70 years far outshining the first.

The post Celebrating Israel’s Re-establishment And Its Achievements appeared first on Wise Money Israel.

Ever since ancient times, Israeli culture has valued education as a primary pillar in the establishment of the nation. The Babylonian Talmud, compiled in the 4^th century CE states, “The very world rests on the breath of a child in the schoolhouse” (Shabbat Tractate, 119b), exemplifying the importance of study and education to the Jewish people thousands of years ago already. Even during the centuries spent in the diaspora, Jewish people excelled and distinguished themselves in education and academia despite frequent hardships and limitations placed on them due to antisemitism and discrimination.

Maintaining this tradition, modern day Israel has a comprehensive and robust educational system, ranging from primary schools to leading higher education institutions that offer undergraduate, graduate and post graduate students multidisciplinary study programs and often supply the world with breakthrough research in science, medicine and technology. Israel’s educational system is considered innovative in and of itself, as can be seen in a recent OECD “Innovation in Education” study that ranked Israel 8^th overall in this category in the OECD between 2000-2011.

Israeli universities rank among the top 100 universities in the world in science and engineering subjects such as mathematics, physics, chemistry, computer science, engineering and life sciences. Israel ranks 2^nd in the OECD nations for the percentage of 25-64 year-olds that have higher education diplomas (undergraduate and above), standing at approximately 45% and is a global leader in the number of scientific articles published per capita. Israel also boasts the largest concentration of engineers in the world with 140 scientists and technicians and 135 engineers per 10,000 employees. In comparison, the U.S.A. has a ratio of 85 engineers per 10,000 employees while Japan’s ratio shows 83 engineers per 10,000 employees.

Furthermore, it is intriguing to note the disproportionate percentage of Noble prize laureates who are of Jewish descent in comparison to the percentage of the Jewish people in the world’s population. Jewish people make up approximately 0.2% of the world’s total population, however one in every five Noble prize laureates is of Jewish descent (20%). Whether laureates were awarded their prize before the state of Israel came into existence in 1948 or after, these figures still point to the importance of education in innovation and it’s clear that the Jewish people as a whole have a much larger innovative footprint than should be expected of them based on their percentage of world population. Equally interesting is the breakdown of each of the six Noble prize categories: Jewish laureates in the categories of Economics, Medicine, Physics, Chemistry, Literature and Peace make up 41%, 28%, 26%, 19%, 13% and 9% of all laureates respectively.

Higher education is known to play a pivotal role in the economic and social development of a country, thus Israel’s educational tradition has greatly contributed to its economic advancement.
Given the strong tradition of education that Israel holds, along with the educational innovation and ingenuity that are part of the system, it is not surprising that Israel spends a higher percentage of its GDP on research and development than any other nation in the world and has one of the highest rates in the world for patents filed. The end result is a robust, highly educated and innovative Israeli workforce that fills the ranks of both local and international companies that are on the cutting edge to develop breakthrough technologies in a wide spectrum of industries.

There is no doubt that Israel’s education has been a considerable factor in the success of the nation’s economy and has allowed it to grow from a desert swampland to a leading and fully developed nation with a booming and resilient economy. As Israel continues to invest resources into its education it will reap the benefits for many years to comes, as will the rest of the world.

Stefan Silver serves as the Director of Business Development & Operations at Wise Money Israel (WMI), the first licensed Investment Portfolio Management firm in Israel that works completely in English to serve local and international clients. WMI works with hundreds of individuals and organizations from around the globe to invest in Israel’s leading companies and technologies through Israel’s capital market – the Tel Aviv Stock Exchange (TASE).

Stefan holds a B.A.in Economics and Management, and an MBA from Haifa University. Born in Auckland, New Zealand, Stefan immigrated to Israel in 1992 and served for four years in the IDF’s Combat Engineering Corp, including combat experience on the front lines of the Second Lebanon war. He is currently a Captain in the IDF Reserves.

LinkedIn: Stefan Silver

Sources:
State of Israel – MFA, State of Israel – MOF (investinisrael.org), OECD.org, Wikipedia, Jerusalem Post

The post Israel’s Educational Tradition Drives Growth appeared first on Wise Money Israel.

Israel’s credit rating has risen consistently over the past 15 years in all three agencies, moving over time from A2 in the year 2000 to A1 (Stable) in 2008 with Moody’s and retaining that rating since, from A- in 2007 to A+ in 2011 with S&P, and Fitch increasing Israel’s ranking from A- (negative) in 2001 to A+ (Stable) this month.

The credit rating of a nation has a big impact on the country's borrowing costs, essentially how it can raise capital both from other sovereign nations and also from investors, whether institutions or individuals. The credit rating indicates the risk level associated with the nation’s investing environment, taking into account various factors including the economic, political and social climates. The credit rating also effects the strength of the local currency in relation to foreign currencies.

There are several main factors that led Fitch to issue their recent upgrade of Israel’s credit rating. These factors have been consistently strengthening over recent years and are positively impacting Israel’s economic forecast for the coming years:

1. Israel’s strengthening external balance sheet
   Fitch first pointed out Israel’s increasingly positive Current Account balance. The current account is an important indicator about an economy's health. It is defined as the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfers. In other words, it indicates if there is more foreign currency flowing in from export and aid or going out from import and payments. Israel has returned annual Current Account surpluses each year since 2003, breaking a record in 2015 with 4.6% of GDP.

2. Israel’s continually decreasing Government Debt to GDP ratio
   Since the mid-late 90’s, Israel’s debt to Gross Domestic Product (GDP) ratio has been steadily decreasing. Despite a periodic rise in the early 2000’s, the ratio has decreased to a favourably low percentage reaching a record low of 64.8% in 2015, revealing how Israel’s economy is producing more services and goods sufficient enough to pay back its debts without incurring more. In comparison the U.S. Government Debt to GDP ratio that has grown rapidly since 2007, eventually reaching over 104% in 2015.

Israel’s GDP average for 2011-2015 has slowed to 3.1% from 4.5% during 2004-2011 resulting from a number of factors, including the slow global economy that Israel is highly dependent upon. By comparison, U.S. average GDP during 2011-2015 was only 1.9%. Looking ahead, In June 2016 the Bank of Israel presented its forecast for the remainder of 2016 and into 2017. The research department forecasts that Israel’s GDP is projected to increase by 2.4 percent in 2016 and by 2.9 percent in 2017. For comparison sake, the projected growth of GDP in the U.S. will be 2.4% in another 12 months and around 2.1% around 2020. Israel’s rate of inflation over the next year (ending in the second quarter of 2017) is expected to be 1.0 percent. The Bank of Israel interest rate is expected to remain at its current level of 0.1 percent during the coming year, and to begin rising at the end of 2017.

Fitch also noted that “Israel benefits from high financing flexibility. It has deep and liquid local markets, good access to international capital markets, an active diaspora bond programme, and US government guarantees in the event of market disruption”.

3. Israel’s natural gas sector discoveries and development
   Israel’s recent natural gas discoveries and development off the Mediterranean coastline have propelled Israel into a regional and perhaps even global energy player. These natural gas fields are further positively influencing the Current Account balance by heavily reducing the need to import natural gas, one of the main energy sources used to fuel Israel’s power stations. Instead, Israel is already consuming its own natural gas flowing through underwater pipelines from the Tamar gas field directly into the stations. Furthermore, Israel is preparing to export this natural resource to other nations, including neighbouring Egypt in an already Israeli-approved deal that will add billions of USD to Israel’s current account in the coming years. In July 2016 the Israeli Government gave the go-ahead to develop the larger Leviathan gas field, and although final regulatory and investment decisions need to be finalized, a number of supply contracts have been agreed in preparation for an initial production date in 2020.

In summary, Israel’s well-developed institutions and education system will continue to cultivate a diverse and advanced economy while human development and the Israeli business environment also promote innovation, particularly in the high-tech sector. Even despite the political volatility in the region and under the still-relevant threat of war and terror, Fitch’s credit rating upgrade and analysis and is another strong indication to the stability and resilience of the Israeli economy and it being an attractive destination for investors worldwide.

Stefan Silver serves as the Director of Business Development & Operations at Wise Money Israel (WMI), the first licensed Investment Portfolio Management firm in Israel that works completely in English to serve local and international clients. WMI works with hundreds of individuals and organizations from around the globe to invest in Israel’s leading companies and technologies through Israel’s capital market – the Tel Aviv Stock Exchange (TASE).

Stefan holds a B.A.in Economics and Management, and an MBA from Haifa University. Born in Auckland, New Zealand, Stefan immigrated to Israel in 1992 and served for four years in the IDF’s Combat Engineering Corp, including combat experience on the front lines of the Second Lebanon war. He is currently a Captain in the IDF Reserves.

LinkedIn: Stefan Silver

The post Israel’s Credit Ratings Upgraded to A+ appeared first on Wise Money Israel.

When author Mark Twain visited the Land of Israel (then still called Palestine) in 1867, he penned impressions of what he witnessed in his book “Innocents Abroad”:

“A desolation is here that not even imagination can grace with the pomp of life and action. We reached Tabor safely. We never saw a human being on the whole route.  There is not a solitary village throughout its whole extent – not for thirty miles in either direction. ...One may ride ten miles hereabouts and not see ten human beings. ...these unpeopled deserts, these rusty mounds of barrenness...”[i]

In conclusion Twain claimed that “Palestine sits in sackcloth and ashes.... desolate and unlovely...”[ii]

Others described the land as “desolate and roamed through by Arab bands of robbers”[iii], “nothing but houses in ruins, cisterns rendered useless, and fields abandoned”[iv] and even late in the 19^th century a French traveler wrote that Haifa “can be crossed in five minutes”[v].

The picture is clear: a mere 100 years ago, the Land of Israel was desolate of people and of buildings, and villages that did exist were comprised of small, rural shacks. That is certainly not the scene that travelers arriving in Israel today first lay eyes upon.

“Though you were ruined and made desolate and your land laid waste, now you will be too small for your people, and those who devoured you will be far away. The children born during your bereavement will yet say in your hearing, ‘This place is too small for us; give us more space to live in.” - Isaiah 49:19-20

Construction in modern day Israel is booming, with apartment buildings, malls, hotels, highways, interchanges and high-rises springing up all over the country, like mushrooms after the rain. Today, Israel boasts over 750 skyscrapers that are 20 floors high or more – hardly a desolate wasteland with barely a village for “thirty miles in each direction” Israel is now a thriving and developed nation, constantly growing and building at an exceptional rate.

Especially notable is Israel’s largest city of Tel Aviv, where dozens of new corporate office buildings and luxury apartment buildings can be seen rising from the Ayalon freeway as it curves through the city. Major construction can also be seen in Kfar Saba, Kiryat Gat, Herzilya, Hadera and Rosh HaAyin with each city’s construction growth rate rising considerably compared to the same quarter last year by 309%, 260%, 114%, 109% and 100& respectively[vi]. The rise in construction is also reflected in Israel’s House Price Index which hit an all-time high in May of this year, up 114% in the past 10 years.[vii]. Israeli real estate prices even continued to rise during the 2008 global financial crisis, with no sub-prime or mortgage-backed securities setbacks.

Israeli real estate is seen by many as a solid and long term investment. However, purchasing real estate here requires a large amount of initial capital, comes with high entry and exit high fees (lawyers, bank fees, agents, taxes, etc.) and the investor must endure a hefty amount of bureaucracy. Property management from abroad is difficult, and unfortunately there aren’t companies here that offer that service to individual investors. Another disadvantage is the illiquidity of the funds used to purchase the real estate, and in times of need are difficult to obtain speedily without suffering significant losses.

That being said, there is a very practical way for investors to gain exposure in their global portfolios to Israel’s real estate market, and at the same time bypass the disadvantages that come with purchasing actual real estate. This is accomplished through purchasing real estate stocks and bonds in Israel’s financial market. The $5,000 investment brokerage account minimum allow the small and mid-size investor to have income-generating Israeli real estate in their portfolios that generate regular dividends.

There are several different options for purchasing real estate stocks or bonds on the Tel Aviv Stock Exchange:

1. A REIT – Real Estate Investment Trust – buys, develops, manages and sells rental real estate assets and real estate loans (mortgages).  Its professionals manage a portfolio of real estate properties that generally include commercial rental properties (such as shopping centres, office buildings, hotels, industrial buildings, etc.) that return rental income for shareholders, typically through large dividends and long-term capital appreciation. This type of specialized company offers shareholders ownership of real estate through the purchase of stock. Investing in a REIT stock versus the direct purchase of real estate has become a popular way for individual and institutional investors (pension funds, mutual funds and insurance companies) to easily gain exposure to the real estate market. REITs have been operating in the United States for small to medium investors since the 1960s, and together are worth hundreds of billions of dollars.There is are a number of publicly-traded REIT investments on the Tel Aviv Stock Exchange. ”REIT 1” operates as a real estate investment trust with a property portfolio that includes office buildings, commercial spaces, and industrial properties. REIT 1’s stock price has risen by over 180% during the past five years and currently holds an impressive market capitalization of 1.88 billion NIS (approx. $500 million USD)[viii]. REIT 1 is purchasable either through direct stocks or corporate bonds. Sela Capital, another Israeli REIT, has returned 25% to investors in the past 12 months. Another REIT, focusing on residential real estate, had an IPO this month.
2. Stocks and bonds of individual construction companies and/or indexes that track the Israel real estate sector. For example the Tel Aviv Real Estate 15 index includes stock in the largest 15 real estate companies, including the Azrieli Group, Alony Hetz Properties & Investments, Airport City, Africa Israel Properties and Shikun & Binui. The index has risen 18% YTD and has gained approximately 90% over the past five years[ix].

It is amazing to see how Israel has transformed from a desolate, desert, swamp land into the established built-up land that it is today. It is nothing short of a miracle. According to the Scriptures, looking ahead we can foresee that this modern-day, “nation born in a day” miracle will continue to grow and thrive. If you desire to take part in building up the Land of Israel, literally, by investing in Israeli real estate, you now know that there is a simple and accessible way to own Israeli land and real estate without the hassles of purchasing it yourself.

Stefan Silver serves as the Director of Business Development & Operations at Wise Money Israel (WMI), the first licensed Investment Portfolio Management firm in Israel that works completely in English to serve local and international clients. WMI works with hundreds of individuals and organizations from around the globe to invest in Israel’s leading companies and technologies through Israel’s capital market – the Tel Aviv Stock Exchange (TASE).

Stefan holds a B.A.in Economics and Management, and an MBA from Haifa University. Born in Auckland, New Zealand, Stefan immigrated to Israel in 1992 and served for four years in the IDF’s Combat Engineering Corp, including combat experience on the front lines of the Second Lebanon war. He is currently a Captain in the IDF Reserves.

LinkedIn: Stefan Silver

[i] Mark Twain, The Innocents Abroad

[ii] Ibid

[iii] Brockhaus, Alig. deutsch Real-Encyklopaedie, 7th ed. (Leipzig, 1827), Vol. VIII, p. 206

[iv] Count Constantine F. Volney, Travels Through Syria and Egypt in the Years 1783, 1784, 1785 (London, 1788), Vol. 2, p. 147

[v] Brother Lievin de Hamme, Guide indicateur, Vol. Ill, pp. 163, 190

[vi] Globes

[vii] Israel Central Bureau of Statistics

[viii] Tel Aviv Stock Exchange

[ix] Ibid

The post Building a Nation: Israel’s Booming Real Estate Market appeared first on Wise Money Israel.

Since David Ben Gurion declared the establishment of the State of Israel on May 14^th, 1948, Israel has been at an almost constant state of war with its Arab neighbors, whether it was large-scale regional Israeli-Arab wars that characterized the first 30 – 40 years of the nation’s existence, or the more recent conflicts with local Palestinian terror groups such as Hezbollah and Hamas.

Due to the change in nature of Israel’s recent conflicts over the past few decades, new security threats have appeared and Israel has once again been forced to invent innovative ways to combat them. Two of these threats are the continual missile threats from Israel’s immediate neighbors in Lebanon and Gaza - as well as more distant nations such as Iran and Iraq - and also the very imminent, although less felt threat of cyber warfare.
Surface-to-Air Missile Defense

Israel may not be the first nation to deal with the constant threat of missiles and mortar shelling, but it certainly is the first to develop a solution for it. Since Israel withdrew from the Gaza Strip in mid-2005, over 11,000 projectiles have been launched into Israel, bringing approximately 5 million Israelis under threat[i].

The Iron Dome mobile missile defense system is part of a larger multilayer missile defense system that Israel is developing to cover all layers of aerial defense. This system includes the Iron Dome (short range), Magic Wand (mid-range) and Arrow (long range). Iron Dome is the only system of its kind in the world, and was developed in a mere four years by leading Israeli defense corporations Rafael (privately owned) and Israel Aerospace Industries (IAI). It has a 90% success rate and has intercepted over 1,200 projectiles aimed at civilian populations since going operational in 2011.

The system is highly advanced and sophisticated; the system’s radar detects a projectile launch and then determines its flight path and impact location. Only if the impact location is in or near civilian populations (or sensitive installations) is an interceptor missile launched. The system is entirely mobile and can easily be relocated and deployed to any location necessary.

Air-to-air Missile Defense

Commercial aircraft also fall under the threat of missile attacks as seen in various incidents around the world such as Malaysia Airlines flight 17 (Boeing 777) that was shot down over Ukraine in 2014 by a Russian surface-to-air missile while on route from Amsterdam to Kuala Lumpur. Although Israel has never suffered a missile attack on a commercial airliner inside Israel, the threat does exist, especially due the proximity of Israel’s borders to Ben Gurion International airport.

In light of the gravity of missile threats to Israeli passenger aircraft both inside Israel and abroad, Israeli security company Elta Systems Ltd. designed “Flight Guard” - the first airborne flight system to protect passenger and freighter aircraft against missile attacks. This system is now installed on all three of Israel’s airlines as well as on hundreds of military aircraft and even VIP commercial aircraft[ii]. Elta systems is part of the larger Israeli government-owned Israel Aerospace Industries (IAI) which offers unique solutions for a broad spectrum of requirements in the fields of space, air, land, sea and cyber[iii].
IAI is investable through corporate bonds on the Tel Aviv Stock Exchange[iv].

Cyber Security

Check Point Software Technologies is a leading global provider of software and hardware & software products for IT security. Best known for introducing the Stateful Firewall that reduces CPU usage dramatically, the Israeli based company was founded in 1993 by Gil Shwed who served in the renowned Unit 8200 during his Israel Defense Forces (IDF) army service. Unit 8200 is part of the Israeli Intelligence Corps and has produced several other former servicemen that have gone on to found additional leading high-tech companies such as Palo Alto, ICQ, EZchip, Onavo, Singular, AudioCodecs, NICE Systems, CyberResaons and more^[v].

Check Point’s hardware and software protect companies of all sizes, as well as consumers, from cyberattacks as well as preventing malware and spyware from penetrating and attacking enterprise networks, computer and even mobile devices. Their innovative FireWall-1 was a groundbreaking development in the area of cyberwarfare and protection and has remained the basis for securing digital communications and data since its inception.

Check Point employs 3,400 people in their offices around the world, is traded on the NASDAQ and has shown an impressive performance of over 300% over the past 7 years[vi].

Once again Israel is innovating, even through hardships, and introducing the world to technologies and solutions that can benefit many other than itself. You can be a part of propelling Israel’s economy and innovations forward by investing in Israel and becoming part of the success.

Stefan Silver serves as the Director of Business Development & Operations at Wise Money Israel (WMI), the first licensed Investment Portfolio Management firm in Israel that works completely in English to serve local and international clients. WMI works with hundreds of individuals and organizations from around the globe to invest in Israel’s leading companies and technologies through Israel’s capital market – the Tel Aviv Stock Exchange (TASE).

Stefan holds a B.A.in Economics and Management, and an MBA from Haifa University. Born in Auckland, New Zealand, Stefan immigrated to Israel in 1992 and served for four years in the IDF’s Combat Engineering Corp, including combat experience on the front lines of the Second Lebanon war. He is currently a Captain in the IDF Reserves.

LinkedIn: Stefan Silver

[i] Israel Defence Force, [ii] Wikipedia, [iii] IAI, [iv] Tel Aviv Stock Exchange, [v] Forbes, [vi] Nasdaq

The post Israel’s Conflicts Leading to Innovation appeared first on Wise Money Israel.

An enormous number of inventions and innovations have come out of Israel in recent decades, more than from many larger, established nations combined. Israel is shining its light on the nations of the world.

Why are there are so many Israeli inventions? Some hints to this mystery might come from the fact that its population seems to be very creative and entrepreneurial.

Innovation involves change for the betterment of mankind, keen observation, thinking outside the box, systematic investigation and serendipity.

Israel has world-leading innovative companies in the fields of technology, transportation, information and communication, food and agriculture, medicine, surveillance and satellites, water, renewable and alternative energy, and security.

Today we’ll focus on a two areas of Israeli innovation - information technology and self-driving cars, and highlight the companies leading these innovations.

Lightning fast Internet speeds

There’s a new game-changing technology called G.Fast which is capable of providing incredibly fast internet over the wires you already have in your home.

Earlier this month, Israeli semiconductor company Sckipio announced a new G.Fast solution that can deliver both upload and download speeds of 750 megabits per second. That's 50 times faster than the broadband many have in their homes today.

But even that speed will be slow in comparison to the next generation of chips that could come within another year. These will provide double that speed for both upload and download (1.5 gigabits per second), Sckipio said. That's faster than anything Google Fiber offers today.

Previous demonstrations of G.Fast have shown the technology to be capable of 750 megabit download speeds, but upload speeds were significantly slower than that.
Equal upload and download speeds are becoming more important, as new technologies require increasingly fast upload bandwidth. Uploading 4K videos, using virtual reality or playing video games all require super-fast upload speeds to function properly. For example, uploading a 30 second 4K GoPro video would normally take five hours using today’s broadband technology, but using G.Fast, it would take only a few minutes.

Sckipio says the G.Fast technology will debut in the United States in 2016. It won't be available everywhere immediately, but Sckipio said a single phone company could roll it out to the entire country in just four years.

Phone companies are excited about G.Fast, because it allows them do deliver super-fast speeds without having to dig up holes in your yard to do it. Or, if you live in an apartment building, they can use the existing infrastructure to deliver fast speeds without having to rewire the entire building.

Multi-dwelling units like apartments are a particularly attractive target for phone companies. Many of those apartments are currently served by DSL Internet over phone lines. But that old technology is dreadfully inefficient: DSL can lose up to 90% of its speed by the time it gets to your modem. G.Fast loses just 5% to 10% during the same trip.

It also solves a problem of deploying fiberoptic cables everywhere, which was previously the only way to get super-fast internet speeds to customers. Bringing fiber to homes is expensive and time consuming (and sometimes requires a company to dig up your yard). Bringing fiber from the street to just to one home can cost $100,000, according to Sckipio.

By comparison, the boxes on the street that need to be installed to power G.Fast cost about $70,000. And the cost of bringing that to your home is $0, since it connects to the phone lines already installed in your house or apartment.

Founded in 2012, the Ramat Gan, Israel-based company with 50 employees develops award-winning standards-compliant G.fast modems, which offer better performance over existing copper wires by dynamically allocating the bandwidth in each direction in real time (Dynamic Bandwidth Allocation, DBA).

Self-Driving Cars

The race is on to get the world's first self-driving car on the road, and the world's biggest car brands - BMW, Tesla and Audi - have all turned to Mobileye, a cutting-edge Israeli start-up.

13 major car companies are all using the technology developed by Israel startup company Mobileye. The company started as a tiny startup, and boasts the biggest IPO in Israeli history (valued at $5.3 billion).

The native Israeli firm, which makes computer vision software and cameras that help cars avoid accidents, offers systems that include a windshield-mounted camera that takes pictures of what is in front of the driver. The images are processed and, in real time, a small device on the dashboard gives the driver audio-visual warnings.

The tiny camera is designed to prevent death and accidents by interpreting a scene in real time. The camera has its eye on the road when driver’s eyes may not be. The software application links to the steering system, and sounds an alert when the driver does something that may lead to a collision. It identifies cyclists and pedestrians, and sounds an alarm before a collision happens. It can also see speed limit signs and whether the driver is veering out of his lane, the first sign of driver fatigue.

The system allows the driver to make a mistake, but brings their attention quickly back to the job at hand. Australia is currently performing a trial of the system using its government vehicles. The technology can be retrofitted easy to any vehicle.

Now the firm is re-engineering the system to allow the driver to take their hands off the wheel. The key innovations are in the microchips Mobileye develops, and in the algorithms the system uses. “In addition to preventing collisions, the system must sense the road in great detail, including lane markings, curbs, barriers, obstructions, recognize a large vocabulary of traffic signs and red lights, determine cars distances, and be fault-tolerant to a degree unparalleled by today’s driver assistance systems,” says company Co-founder, CTO and Chairman, Professor Amnon Shashua.

One day this technology will likely allow us to take our hands off the wheel, and let a sophisticated computer system that never tires or makes driving mistakes, assist us to arrive safely at our destination.

How can I participate?

Some innovative Israeli companies are investable only via venture capital firms offering tens of millions of dollars to viable startups. But other Israeli innovations are developed by Israeli companies already listed on the Tel Aviv Stock Exchange. Israelis and non-Israelis alike - irrespective of residency and citizenship - may open a shekel-based investment account at Israel’s largest brokerage firms, and invest in these publicly traded companies directly in the Israeli shekel. Individuals, companies, organizations and U.S. retirement accounts may open accounts, enabling them to invest in Israeli stocks, bonds and mutual funds.

Sources: MarketWired, CNN, 9news, Mobileye

The post Israeli Innovation – Changing the World appeared first on Wise Money Israel.

By Wise Money Israel Analyst

In the past 5 years, the U.S. stock index S&P 500 increased approximately 105%. The Dow Jones Industrial Index returned about 86%. However, during that time period, Israel’s Tel Aviv Stock Index (TA-25) registered “modest” growth of approximately 54%. [The TA-25 doubled and quintupled Wall Street’s performance over the past 10 and 15 years time periods respectively]. The more interesting question is what will does the future hold? Which market will outperform over the next five years?

I believe that the Israeli stock market is more attractive than other developed nations, especially compared to the American stock market that gained considerably in the past five years. Here are three key reasons why investing in the Israeli stock market is a better investment than the American stock market:

1. 1. More attractive P/E Ratios: When comparing Price/Earning ratios¹ between stock markets around the world and other ratios, we can see that the Israeli market is more attractive (cheaper) than the majority of developed nations’ stock markets around the world, and in particular, the U.S. stock market. There are countries with more attractive multiples, but these are developing nations or emerging markets and not developed countries. See the table "Market Indicators By Nation". [Israel's indicators rank it as the 10th best market]

1. Macro-economic indicators support growth: When we look fundamentally at the Israeli economy, there are several indicators that support long-term growth, compared with the other developed nations in the world. For example, Israel’s Debt-to-GDP ratio of 67% compares well to Germany’s higher debt ratio of 75%, 91% in the Euro block, 101% in the United States, and 230% in Japan. In addition, Israel’s unemployment rate is approximately 5.0% [OECD average: 7.4%], GDP is about 3.0%, and Israel’s population growth rate is the second fastest in the world’s developed economies (only Ireland is growing faster). In addition, Israel is characterized by a young population, well-educated (ranking second place globally for percentage of high school graduates, and first place globally for percentage for PhDs). Despite these indicators, the domestic economy is lagging compared to developed countries in per capita income. Therefore, I believe that the local Israeli economy will continue to grow at a faster pace than the developed nations average in the coming years.
2. The ratio of companies’ valuation to GDP. As is well known, in the long-term a stock market’s valuation will move in relationship to certain key indicators. Warren Buffett claimed that the ratio of companies’ valuation to GDP is “the single best indicator for overall stock market pricing.” The table "Capitalization to GDP" summarizes the stock markets pricing valuation as derived from this ratio.
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   As you can see in the graphs here, the ratio between the companies valuation compared to GDP of the Israeli stock market is approximately 0.78, meaning it is priced between “fair value” value and “cheap market” value. On the other hand, the U.S. stock market ratio is 1.27! In other words, the indicator shows that the U.S. stock market is very, very expensive, and we can expect to see a deep correction downward in U.S. indices.

Accordingly, I believe that in the near future, the Israeli stock market will outperform compared to the U.S. stock market, and therefore, we recommend that you increase your exposure to Israeli stocks, and consider closing U.S. stock market positions.

Disclaimer:
This work is carried out based solely on publicly available information. Not all tests were performed to verify the accuracy of the information forming the basis for this. The information may contain errors and subject to changes after the publication of this document. The information contained in this report does not purport to contain all the necessary information regarding the matters contained in it, nor is it intended to be a complete analysis of all the facts and information contained in it. Furthermore, there could be substantial discrepancies between the assessments introduced here and actual results. The editor/author is not obliged to inform the recipients in any way for such changes in advance or after the fact. This document should not be considered a recommendation or substitute's the reader’s own discretion or an offer or invitation to obtain offers, or advice to buy, making investments or carrying out activities or transactions whatsoever. This analysis reflects our understanding on the date of publication of the document. This document is not a substitute for professional advice, including legal advice and therefore you should not rely solely on the information contained in it, and it does not replace independent judgment and receiving professional or legal advice that takes into consideration the special needs of each person. Wise Money Israel, its employees and associates, and anyone acting on its behalf, shall not be liable in any manner for any damage and/or loss caused to the use of this document, if any, unless caused by negligence and/or lack of good faith and/or malice on their part, and cannot guarantee or be responsible for the reliability of the information set forth in this report.
This document is intended solely to qualified customers, as defined in the Regulation of Investment Advice and Investment Portfolio Management Law - 1995. This work is not to be distributed, transmitted, copied or used in any other way without the approval of Wise Money Israel’s prior written consent.

¹ Price/Earning Ratio - dividing the value of the trading company by net profit last year. This test was done on all public companies of the leading indices in each country.

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