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Flight from bank provident funds gathers pace.

Asia Africa Intelligence Wire

| October 10, 2004 | COPYRIGHT 2003 Financial Times Ltd. (Hide copyright information)Copyright

(From Israel Business Arena)

Byline: Eran Peer

The capital flight from bank provident funds to non-bank funds is snowballing. Large private and government companies are hopping on the bandwagon. Rafael (Israel Armament Development Authority Ltd.) has published a tender for choosing provident and advanced training funds for its 3,000 employees.

Rafael is the first government company to publish a tender for non-bank funds to manage its employees' savings. Insurance market sources believe that other tenders will now be published.

The results of recent tenders have been a blow to the banks. Alvarion (Nasdaq:ALVR; TASE:ALVR) transferred its …

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