Canaf's investment universe includes a variety of markets and investment classes both in Israel and globally with the aim of generating excess yields through the use of a balanced investment strategy including: stocks, government bonds, corporate bonds, foreign currency, investment funds, infrastructure projects, loans, income-generating real estate, and other illiquid investments.
Canaf operates within a multi-year strategic plan that is assessed and updated periodically. On a yearly basis, the members of the Board of Directors, members of the investment committees and investment managers convene for a series of meetings, during which Canaf's investment policy and asset allocation are decided, recommending the investment asset classes and their relative weightings. This investment policy is adjusted through the various investment committees specifically for each of the portfolios managed by Canaf, in accordance with the unique characteristics of each portfolio. Over the course of the year the strategy is re-evaluated and adjusted as necessary in light of changes in the relevant published macroeconomic data and in the markets.
The investment committees
The investment activity of each of the unit holders - Clal Pension and Provident Funds, Veteran Pension Funds and Manager's Insurance - is supervised, controlled and approved by designated investment committees. The investment committees are composed of a majority of external directors, and convene at least once every two weeks and more frequently if necessary.
Specialist investment units
Canaf contains professional units that specialize in investment fields that require in-depth knowledge and a high level of specialization, such as: Real Estate investments, Global investments, Equity & Credit research, Credit and Infrastructure project investments and alternative assets. The function of these units is to provide professional services in their appropriate fields to the investment managers.
The investment process
Canaf's unique investment process begins with the generation of an annual investment strategy which is adjusted as appropriate for each of the managed portfolios. Professional forums led by the various specialist units convene on an ongoing basis to discuss each of the asset classes in the portfolios and to formulate recommended actions, which are then brought to the investment or credit committees, in accordance with the levels of authority that are determined in Canaf’s procedures.
The investments are supported by comprehensive research from the professional department specializing in the field (internal and/ or external research).
Each investment is examined and approved by Canaf's legal counsel.
The operations department is responsible for the day-to-day operations of clearing securities and tracking movements in bank accounts and the accurate booking of investments.
The internal audit department is responsible for assessing how the investment activities meet the various guidelines (Regulations, corporate constitution, Board of Directors, investment committee, procedures).
The investment decisions of each of the unit holder bodies are implemented in the Canaf trading rooms. In order to prevent conflict of interests, the activity of the unit holders is carried out in an independent trading room, while the nostro activity is carried out in a separate trading room.