Jewish Alliance Endowment helps to strengthen Israeli economy

Along with Miami, Baltimore, Chicago and Memphis, the Jewish Federation Foundation of Greater Rhode Island, chaired by Doris Feinberg, recently became one of the first Jewish endowments in North America to commit funds to the Israeli Stock Market.

During the Jewish Federations of North America’s 2013 Investment Institute in Palm Beach, professional leaders from across North America met to discuss how to maximize returns on more than $13.5 billion in assets that the Jewish federations hold in their endowments.

Influenced by what they’ve learned, the Jewish Federation Foundation of Greater Rhode Island’s Investment Committee and Alliance VP of Financial Resource Development, Eddie Bruckner, felt that Market Vectors® Israel ETF (ISRA®) investments should be an important part of their international Growth Stock allocation. In addition, the investment represented an excellent long-term opportunity for the overall endowment portfolio.

ISRA® comprises 105 Israeli stocks and is diversified by weight, sector, and inclusion of Israeli companies listed worldwide, not just those on the Tel Aviv Stock Exchange. According to Vaneck.com, the fund’s key points are “exposure to a stable, growing, and resilient economy, exposure to a multi-sector economy and exposure to Israeli companies globally.”

ISRA® may be the most efficient vehicle for investing in the complete universe of Israeli equities. It tracks the BlueStar Israel Global Index (BLSNTR), which was developed by regional specialists and continues to evolve to reflect the global footprint of Israel’s economy and companies. Those who would like to research the fund may do so at vaneck.com/funds/ISRA.aspx.

The Jewish Federation Foundation of Greater Rhode Island’s Investment Committee believes that the Israeli equity market presents a compelling investment opportunity, as Israeli equities have shown strong long-term performance and the Israeli equity market was the best emerging market performer on a risk-adjusted basis from 2002 to 2012.

The Foundation’s investment portfolio has always included Israel Bonds, which are backed by the Israeli government. With ISRA® Index, the Foundation is now investing dollars and helping to strengthen and support the Israeli economy. Investing in Israeli equities provides another important area of connectivity between our local Jewish community and Israel.

ROBERT SHERWIN is chair of the Investment Committee and serves on the board of directors of the Jewish Federation Foundation of Greater Rhode Island.