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מודפס גם בעברית
מודפס גם בעברית Private Banking Issue No. 90 September 2010 ESPECIALLY FOR LEUMI UK PRIVATE BANKING CLIENTS September 2010 Issue No. 90 Contents Greetings from the Deputy Head of Int’l & Private Banking Israeli Macro Economic Review World Macro Economic Review Leumi for the Arts 4 6 8 11 Leumi’s Website 12 Leumi’s Overseas Banking Subsidiaries Did you Know? 3 Editor: Smadar Ilan Tel: 03-5149989 Fax: 03-5149602 E-mail: [email protected] www.bankleumi.com 14 Rosh Hashanah 5771 Dear Customers, New Year’s Eve of 5771 is at the threshold and the time has come for recapitulations and soul searching from the past alongside plans, hopes and good wishes for the New Year. The Private Banking Division was established in 2001 and the coming year signifies its tenth anniversary. Over the past decade, we were at your disposal with the gamut of private and international services that the Leumi Group offers its domestic and global customers. These services were rendered according to the highest standard benchmarks. The Leumi Group provides a range of financial services in Israel and at the Leumi subsidiaries overseas. We introduce our subsidiaries throughout the world in this festive edition. We, at Leumi Private Banking, offer our customers a range of services at the highest professional level: top-of-the-line investment consultants, financial instruments, capital market activity in Israel and overseas and advanced technological services. We have improved personal account reporting and offer user-friendly account statements, which facilitates following up on and managing investment portfolios. This statement is also available online. Leumi is the first bank in Israel to implement this service for its private banking customers. The “Leumi Digital” setup is also available to our customers, providing a range of state-of-the-art services: Leumi Twitter, Leumi Blog, SMS cash withdrawals, unique mobile telephone applications and receipt of encoded bank mail messages directly to private e-mail boxes, etc. Amongst the opulent professional, innovative and technological activities, Leumi has kept its commitment to the community. We, at Leumi Private Banking, have invested resources in the arts field and promoting young artists. During the past year, events, that integrated customer enjoyment and emotion with contributions to various groups, were arranged. Inter alia, these events included the event at the “Na Laga’at” Center in the Jaffa Port – a theater for the hearing and sight disabled. Furthermore, most of the gifts given to our customers are the products of special needs people and are purchased from associations that operate for the sake of the community. I hope that you find this festive edition interesting and that you will continue to benefit from the range of services and events that Leumi Private Banking provides you each year. May I wish all of you a year of continued fruitful cooperation, prosperity, happiness and health! Yours as always, Gidon Suesskind Deputy Head Int’l & Private Banking Division Israel Macro Economic Review ©¥²°¦ §£²£¡¨ ¨ - £¦£ ³¡ ¦¬ By: Eyal Raz, Head of Economics Department, Finance and Economics Division 0.5% ´¦£¡´¨ 7% � ���!' ' ' �-� ��������""' ( ' '#* " ¨¥´« ª³ 6% .1.1%-¥ ´££¦¬ ��� �(" " ( �-�� ������� " "' ( ' '#* " 5% ¨²´ 4% ´££¦¬¦ ´£´¬¨³¨ ³¡ ¨ 3% A positive surprise in second quarter Against ´££ the backdrop of these data, the Bank ²¡´ £¬«¦forecast remains at its economic growth Leumi 2010 GDP growth 2% ²³ previous¦¬ level of´²³±´ 3.8%. Second quarter GDP expanded 4.7% in annualized 1% 0.3-¥ §²´ 1.3%- terms compared to the first quarter, while the 0% .¨¦ ¡ ´±ªof financial assets The public’s portfolio business sector product increased at a faster Ͳ1% ´££¦¬moderately ¦³ ,´ in the first half of increased annualized rate of 6.0%. In fact, these growth rates ´¬£«ª £²£¡¨ Ͳ2% the� year � Կ the � highest � Կ since � � the � beginning � � � � Կ 2008 � (see � Կ Կ � � � � � � of � � are � � � � � Կ � Կ � Կ � Կ Կ � . §£±¦ ¦"¡¦ � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � -� - � � � � -� - � � � � -� - � � � � -� In - the first six months of the year, the value � � � second � � � � - � � � - - � � � � -factors � � - �the � � - �quarter’s graph). The behind � � ²³ ²£ £¬« � � � � � � � � � � � � � � � � � � � � � � � � � - � � � � � � � - � � - � � private � - � - � � of the -¥public’s portfolio rapid growth include consumption, � � � � � � � � §²´ ,1.0% - ¦¬ of financial assets � � � � increased 1.1%,´±ª reaching which increased by 8.7% in annualized terms, ¡ 0.22a total of NIS 2,325bn at the end of ²³¥ June 2010. 12- © ª³ as´£³²¨ ,¨ expanded ´££¦¬¦ ²£ £¬« ´¨²´ ´ §£ª¡ .¨¦ Price declines in the as well exports,© which by 15.8%. stock in the months April and May ¤¥ ³£Also .¦¦¥ ¨ ´££¦¬¨ 60%economy, -¨ ²´£ ´¨¥´«¨ ¨²´³ £²component ,§£ª²¡ §£³¡ investments in the in particular ¦¦¥ ª£ ²³ «"construction, ¨¦ ¦³ ´²£ £²£¡¨ ²±« ±³ ´¥³¨ª ´£¦¬¦ were §£²£¡¨ notable in their£¢£ impact on the decline in residential increased at a) ²£ rapid pace. ¦¨³¨For ² ,22% £´ª³ °± §£²£¡¨ ©¥²°¦ ¨ during these months. the value of §£²£¡¨ the portfolio the.(²£± moment the¦³fast growth rates do´££¦¬ not ¦¬ ¬£°¨ ©´ª .¦¦¥ ´£´¬¨³¨ ²£ ¦¦ ¨ ´££¦¬ °± £¥ ´²¦ ©´£ª When analyzing the annualized rate of asset show ¨ any ´£¦¬ sign °±¨ of a§£¥ slowdown in ¤¨ª economic ª³ §£®° ª , ¨£± ¢¨ . ²£ £¬« ¦²¢ª , ´£«¡£ ¥¨ª £°¦®ª£ ¦¬ ¨¦¨ accumulation (that is to say, the change in the activity. Also export and import data from July ´££² ²¨³¦ £³¬continued °¨ .§£²£¡¨ ´£°£ ¬£ ¬°¨¦ ²± ²¬£³ ¨ ´££¦¬ ²± value,§£²£¡ neutralizing the impact of the prices of indicate growth in the area of foreign .´£¦£¦³ (£®°) ´£¦£² ´££² components ¥¨ª ´£¦ª£¨ªof the portfolio) it is the various � ̃�̿���̿�\�$$* +)* $��������,$'$ +,, - ��+-̿��̿��ȿ+$$$'$ trade, while the surplus in the basic trade account possible to discern a slowdown in the second (excluding ships, aircraft, fuel, and diamonds) quarter of the year. reached its highest level since the beginning of A positive surprise in second quarter economic growth Thecompared proportion of first stocks (domestic and the year. This comes after a significant upward Second quarter GDP expanded 4.7% in annualized terms to the foreign) in the Israeli public’s portfolio of revision by the Central Bureau of Statistics quarter, while the business sector product increased at a faster annualized rate of financial assets reached 23.5% in June 2010, in these second quarter 6.0%. (CBS) In fact, growth ratesforeign are thetrade fastestdata. since the beginning of 2008 (see graph). The factors behind the second quarter’s rapid growth include private consumption, which increased 8.7% in annualized terms, as well as exports, which expanded 15.8%. Also investments in the economy, in particular residential construction, increased at a rapid pace. 10 8 6 4 2 0 -2 -4 -6 Economic growth Quarter-on-quarter rate of growth, %, (%) annualized terms, based on seasonally adjusted data I-III IV- VII- X- I-III IV- VII- X- I-III IV- VII- X- I-III IVVI IX XII VI IX XII VI IX XII VI 2007 2008 Total GDP 2009 Business sector 2010 For the the moment moment the the fast fast growth growth rates rates do do not not show show any any sign sign ofof aa slowdown slowdown inin For economicactivity. activity. Also Alsoexport exportand andimport importdata datafrom fromJuly Julyindicate indicatecontinued continuedgrowth growth economic to March’s levelthe of surplus 24.9%. inWhen The housing thecompared areaofofforeign foreign trade,while while the surplus inthe thebasic basic trade accountcomponent, (excluding which rose 1.0%, ininthe area trade, trade account (excluding analyzing theand value of the portfolio ofhighest tradedlevel 0.2% to of the index. When analyzing ships,aircraft, aircraft,fuel, fuel, and diamonds) reachedits its highest levelcontributed sincethe thebeginning beginning ofthe the ships, diamonds) reached since in Israelafter in relation to the upward GDP (a figure the contribution of the of housing component to year. stocks This comes comes after significant upward revision by by the the Central Central Bureau Bureau of year. This aa significant revision reflecting developments in the stock market the overall index, both year-to-date and over Statistics(CBS) (CBS)ininsecond secondquarter quarterforeign foreigntrade tradedata. data. Against Againstthe thebackdrop backdropofofthese these Statistics vis-à-vis economic activity), we see the ratio the trailing 12 months, we see that it accounted data, the the Bank Bank Leumi Leumi 2010 GDP GDP growth growth forecast forecast remains remains atat its its previous level level of data, reached 55% in2010 the second quarter of this for moreprevious than 60% of theofincrease in the overall 3.8%. of the continuing 3.8%. year, after a level of 59% in the first quarter. index. This is a reflection This level is indeed very far from the low increase in prices in the housing market (the levels seen over the last two decades, ranging survey of housing prices conducted by the CBS, Thepublic’s public’s portfolio financial assets increased moderately theincluded firsthalf halfinofofthe CPI, indicates an The portfolio financial assets the first between 20-30%;ofofbut also the peakincreased levels ofmoderately which isininnot the year the this ratio, which ranged between 65-70% in increase in prices at anyear annualized rate of close thefirst firstyears sixmonths months the yearremain thevalue value thepublic’s public’sportfolio portfolio financial assets InInthe six ofofthe year the the assets the 1994 and 2007, farofof off. to 22%). ofof It financial can be seen in the accompanying increased 1.1%, 1.1%, reaching reaching aa total total ofof NIS NIS 2,325bn 2,325bn atat the thegraph end ofofthat June 2010. Price increased end June 2010. Price the increase in the CPI excluding The of increase of in the CPI is within isnotable significantly declines thestock stock component inthe the months Apriland andhousing Maywere were notable theirbelow the rate of declines ininrate the component months April May inintheir the price stability target range increase the overall index. This figure shows impact on on the the decline decline inin the the value value ofof the the portfolio portfolio during during theseofmonths. months. When impact these When inflation excluding the Thethe consumer pricerate index (CPI)accumulation increased 0.5% analyzing theannualized annualized rate asset accumulation (thatisthat istotosay, say,the thechange changeininthe the housing component analyzing ofofasset (that is relativelyofof low. in July,the while year-to-date theofofindex has components value,m/m neutralizing the impact theprices prices thevarious various components theportfolio) portfolio) value, neutralizing impact ofofthe the the in the quarter coming year, we expect an increase in increased it1.1%. The most significant contribution itisispossible possible discernaaslowdown slowdown thesecond second quarterofof theyear. year. totodiscern ininthe the prices at a rate close to the middle of the to the increase in July’s index figure came price stability target range. from theofoftransportation andand communication Theproportion proportion stocks(domestic (domestic and overseas)ininthe theIsraeli Israelipublic’s public’sportfolio portfolio The stocks overseas) ofof Such a situation would likely lead to the continuation of a low component, which rose 1.3% and contributed 0.3 financialassets assetsreached reached23.5% 23.5%ininJune June2010, 2010,after afterininMarch Marchthe thelevel levelequaled equaled24.9%. 24.9%. financial nominal interest rate in the economy and a percentage points to the index. This is due to the Whenanalyzing analyzingthe thevalue valueofofthe theportfolio portfolioofoftraded tradedstocks stocksnegative Israelexpected relationreal the When ininIsrael ininrelation totothe rate. increase in prices of overseas travel and fuel. GDP (a(a figure figure reflecting reflecting developments developments inin the the stock stock market market vis-à-vis vis-à-vis economic economic GDP activity),we wesee seethe theratio ratioreached reached55% 55%ininthe thesecond secondquarter quarterofofthis thisyear, year,after afteraalevel level activity), 59%ininthe thefirst firstquarter. quarter. This Thislevel levelisisindeed indeedvery veryfar farfrom fromthe thelow lowlevels levelsseen seenover over ofof59% thelast lasttwo twodecades, decades,ranging rangingbetween between20-30%; 20-30%;but butalso alsothe thepeak peaklevels levelsofofthis thisratio, ratio, the whichranged rangedbetween between65-70% 65-70%ininthe theyears years1994 1994and and2007, 2007,remain remainfar faroff. off. which 80% 80% Thevalues valuesofofequites equitesheld heldby bythe theIsraeli Israelipublic public The %ofofGDP GDP asasaa% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 1198 9 5 119885--Q 9 6 Q11 119886--Q 9 7 Q11 119887--Q 9 8 Q11 119888--Q 9 9 Q11 119899--Q 9 0 Q11 119990--Q 9 1 Q11 119991--Q 9 2 Q11 119992--Q 9 3 Q11 119993--Q 9 4 Q11 119994--Q 9 5 Q11 119995--Q 9 6 Q11 119996--Q 9 7 Q11 119997--Q 9 8 Q11 119998--Q 9 9 Q11 220909--Q 0 0 Q11 220000--Q 0 1 Q11 220001--Q 0 2 Q11 220002--Q 0 3 Q11 220003--Q 0 4 Q11 220004--Q 0 5 Q11 220005--Q 0 6 Q11 220006--Q 0 7 Q11 220007--Q 0 8 Q11 220008--Q 0 9 Q11 220019--Q 11 010-Q 0-Q Q11 0% 0% Therate rateofofincrease increaseofofthe theCPI CPIisiswithin withinthe theprice pricestability stabilitytarget targetrange range The World Macro Economic Review By: Liora Caplan, Capital Market Research Department, Investment Counseling Division As in July, it appears that, during August, the micro field continued to produce relatively good news, while the macro field, particularly in the US, was still disappointing. Furthermore, while most of the leading indices presented impressive price hikes in July, as at the time of printing this article, it appears that August will close with price declines. Apparently, over the past month, the dwindling company financial statement publications failed to calm investor sentiment against the disappointing macro figures. As at the time of preparing this document, since the beginning of the financial statements publishing season, 461 companies in the S&P500 Index had published their Q2/10 results. 349 of these companies reported better than anticipated results. On an average, the surprise rate is approx. 10% and the earnings growth rate is approx. 48%, compared with Q2/09. These publications contributed to easing investor sentiment and supporting price hikes. Nonetheless, as aforementioned, frequently published macro data continue to disappoint investors. Among the notable data published this month, the July employment report, published at the beginning of the month, is of special note. Expectations prior to its publications were for a 65,000 job decrease, while the economy actually lost twice that amount, 131,000 jobs. The June figure was also adjusted downwards from a 125,000 to 221,000 jobs lost. The public sector lost the largest number of jobs, while the private sector continued to create job opportunities (71,000 new jobs during the month). Notwithstanding, this figure was lower than expected and was not perceived as sufficient to support continuing the American economy’s vibrant recovery. Yet another publication indicated that American consumer private income and expenditure had remained unchanged in June, while earlier expectations indicated hikes in both entries. These data, which cast a negative shadow over the American consumers situation, also contributed to assessments that the Q2/10 GDP growth figures would be adjusted downwards. We reiterate that, in Q1/10 the American economy expanded by an annual rate of 3.7%. The initial estimate for Q2 growth was 2.4% and, as at the present, the belief is that this rate will be downgraded to an annualized 1.4%. This adjustment should be published towards the end of August. This month also saw the American Federal Reserve’s fund rate meeting, during which, in line with expectations, the Bank’s members left the key rate unchanged at 0.0%-0.25%. The fund rate decision offered no surprises. However, the Bank’s members announced their intention to preserve the Bank’s balance sheet volume at the current $2.05 trillion; a measure that will be executed by using money that the Bank receives for the coupon payments of Federal agency and mortgage backed bonds that it is holding, in order to acquire long-term government bonds. Furthermore, in the event that one or more of the government bonds, worth a total of $300 billion that are in its balance sheet, reaches maturity, the Fed will use the money for a Euro and USD vs. NIS buyback of government bonds in the market. This announcement caught the market by surprise and did nothing to ease the depressed investor sentiment. Even if this procedure is adopted by the Fed, contains nothing to step up the expansive monetary policy, it still clearly signifies the Fed’s apprehension in relation to the economic situation. The Fed has not marked time and has already commenced implementing these measures. The bond acquisition volume is expected to reach $18 billion during the first half of September. As aforementioned, this month, the major equities indices have been traded in a price declining trend. Simultaneously, the government yields curves, especially in the US and Europe have been traded with a tendency towards price hikes and yield declines. These trends primarily reflected investor fears regarding growth prospects and their assessments of a prolonged low interest rate environment, whether in the US or globally, and their tendencies to reduce risk levels in their portfolios. On looking ahead, we reiterate that future US growth is substantially dependent on both the employment situation in the economy and consumer sentiment. Despite the fact that, over recent months, the private sector has contributed to increasing the number of jobs in the economy, the job increase rate is still slow and is expected to have a negative effect on economic growth. However, despite the fact that substantial deceleration in the US growth rate is expected during the reminder of the year, the data published do not necessarily indicate a return to a recession course. Gold prices (USD) Oil Prices per barrel (USD) TA25 Leumi for the Arts Leumi supports young Israeli artists alongside promoting Israeli artwork By: Inbal Sivan, Marketing Division In addition to its corporate activity, Leumi invests substantial wide-ranging resources in activities for the society and the community in which it has operated since its establishment in 1902. Leumi’s deep involvement in this enterprise gains expression in investments in the young, future generation. Within this frame of reference, Leumi has set itself the goal of supporting young Israeli artists and promoting Israeli artwork in general. To this purpose, the Bank has supported a number of projects that provide the future generation of artists with a stage that facilitates exposure to the general public simultaneously with opening the Visitors’ Center and Gallery “Leumi Mani House”. Leumi’s Visitors’ Center and Gallery The Visitors’ Center and Gallery, Leumi Mani House, is one of the first buildings constructed in the Ahuzat Bayit neighborhood, which, over time, became the city of Tel Aviv. In 1986, Leumi acquired this unique building, which was constructed in 1910 as the Honorable Justice, Malkiel Mani’s, family residence. The house was declared a building for preservation, and restoration work took three years. In the summer of 2008, it was opened to the general public as Leumi’s visitors center. The center presents the Bank’s history alongside changing art exhibitions and integrates a permanent exhibition which presents stories relating to Leumi in the history of the State of Israel with a gallery that serves as an open house for Israeli art. The visitors’ center is located adjacent to Leumi’s head quarters at 36 Yehuda Halevy Street, Tel Aviv and is open to the general public, free of charge. The center hosts changing exhibitions of the top Israeli artists, and exhibits collections from leading Israeli galleries and museums. Rows of Bodies The current exhibition at the center, “The Rows of Bodies” deals with the relationship between body and location, as this is expressed in the artwork of generations of Israeli artists, including Ori Reisman, Michael Gross, Moshe Kupferman, Henry Shelesnyak and Michal Helfman. The artwork, which were selected from the rich Ein Harod Art Museum collection, demonstrates the metamorphoses that has taken place in the perception of the relationships between location, space and the human body that exists within it – and examines moments in which functions change; The space undergoes a humanization process, while the human body becomes a site of activity and work. This aspect is given added depth when it is executed against the background of the special link between the cooperation that gave rise to it – between the Ein Hod Art Museum and Leumi – and the cultural, historical and post modern contexts that are identified with both of them; the links that sketch the map of Israeli society and culture’s footsteps over the past six decades. The exhibition curator - Uri Dessau This exhibition will be exhibited at Leumi Mani House until November 5th, 2010 Avner Ben-Gal Voices in Color On the occasion of the Israeli Opera’s Silver Jubilee celebrations, Leumi hosted a photographic exhibition, “Voices in Color”, presented by the artist Tomer Ganihar. During 2009, Ganihar accompanied and filmed the dress rehearsals of well known favorite operas from the stage and behind the scenes. Opera is a stage art and photography is a visual art. Opera is renewed every evening on the stage according to the conductor and singers’ tempo, while a photograph, as soon as it is executed, exists and is unchangeable. Ganihar’s photography uniquely integrates the two genres creating a new unique genre, which enables seeing the voices even after the operatic performance has ended. Ganihar’s works amazingly capture the potency of the feeling, passion and incandescence produced during an operatic experience and transmit the glamour of this unique art form, which has captivated so many hearts throughout generations. This exhibition closed in June 2010. Secret Art Every year since 2006, Leumi hosts the Secret Art Exhibition, which is based on an artistic format borrowed from the Royal Academy Museum in London. Paintings, sculptures and video films are exhibited at the exhibition - art of both famous and upcoming artists, most of whom are students at design and art colleges of higher learning. The works are presented to the exhibition’s visitors without the names of the artists and are unsigned. Placing art works for viewing by the general public without exposing the artist’s name faces visitors with a unique challenge at the exhibition. The impression gained from the creation stems from its objective quality as perceived by viewers, without preconceptions and familiarity with an artist influencing adopting opinions on the work. This format raises primary questions regarding the reasons for selecting one or another art creation. Beyond the artistic exposure, all the works exhibited at the exhibition are offered for sale and the income is transferred to the artists. At the end of the exhibition the names behind the pictures are exposed and only then do purchasers discover whether they have purchased a famous artist’s work at a bargain price, or a spectacular artwork of a young talented artist, which may have a high financial value in the future. festival enables the performance of Israeli artists, bringing artists from all over the world, subsidizing tickets, allowing free street performances and conducting special events. The Queen of Sheba Leumi Mani House The Box Another exhibition of post modern art that was hosted at Leumi Mani House was arranged in cooperation with the Bezalel Academy of Arts and Design. This exhibition focused on an encounter between various artists, Bezalel alumni - an encounter that brings together and contrasts styles, merging them into reciprocal, unique and intriguing creations. The dialogue between the works and the creators forms a communications channel that leads to a new energy-filled location. This exhibition exhibited a range of creations, art, photography, video and sculpture from the artists, Haim Almoznino, Avner Ben Gal, Raya Bruckenthal, Maya Zack, David Reeb, Zvi Tolkovsky, Rusalana Lichtsear, Ohad Meromi, Gil Shani, the Zik Group, the Barbur Group and the Darom Group. This exhibition closed in April 2010. In addition to the exhibitions hosted at Leumi Mani House, Leumi sponsors various artistic events throughout Israel: 10 The Israel Festival Another channel for Leumi’s support of postmodern art is in the form of sponsoring the Israel Festival for over a decade. This festival, which takes place annually in Jerusalem for a few weeks during Spring, provides the Israeli public with a broad variety of artistic performances from Israel and abroad, with a focus on important post-modern creators and performers in the global scene. Artists from many countries participate in the festival alongside world-famous Israeli artists in the worlds of music, dance and theater etc. The support that Leumi provides for the Ben Lam, the mythological fashion photographer, who has been operating both in Israel and overseas for many years, has dedicated himself to realizing a dream. During the past two years, he photographed portraits of Ethiopian women who live and work in Israel. This exhibition exhibited photographs of Ethiopian women that Ben Lam photographed and edited with the aim of presenting these women’s integration amongst the local population in Israel, while negating the common perception in Israel, for this sector, which is almost always exposed in a negative connotation. The photography is executed in black and white in order to focus the viewers’ attention primarily on these women’s radiant personalities and natural beauty. According to Lam: “While photographing, which, for me was an incomparable experience, I discovered that the Ethiopian women, in actual fact more than the men, managed to pave their way and acclimatize more beneficially in society and, consequently (I hope) are likely to advance the general community”. Aftershock – Ziv Koren’s Photography Leumi sponsored the Aftershock Exhibition – the photographic travel journal of photojournalist Ziv Koren, from the earthquake disaster region in Haiti. The photographs in the exhibition indicate the dimensions of the ruin and destruction, caused by this natural disaster during the critical moments after the quake, only 36 hours after it took place, from a journalistic and personal viewpoint. The income from the exhibition, were donated to aid Haitian rehabilitation, which could take as longs as 10 years, with the aid of the Latet Organization. The Days of Kassit Black and white photographs of nostalgic and historical moments taken by photographer Tzachi Ostrovsky, which feature all the celebrities of the past, who stood out in Israeli culture of the 60s and 70s, such as Uri Zohar, Arik Einstein, Gila Almagor, Shalom Hanoch and many others, were exhibited during the exhibition. Leumi's Website Awarded Best Banking Website for Private Clients in Israel The prestigious economic journal, Global Finance, has selected Leumi's website - www. bankleumi.com, as the best banking website for private clients in Israel for the 2010 year. This was the first time that Leumi had submitted its candidacy for the prestigious international competition between the best banking websites in the world, which has been organized by Global Finance for the past 11 years. The following criteria were examined: the degree to which the website correlates with the bank’s strategy and its online customer services, success in increasing its customer base using the online services, the range of products offered online and the website’s design and functionality. The major factor that contributed to Leumi’s recognition was Leumi Trade, Leumi’s capital market website, which, for some years, has won various competitions in Israel's Internet field. These included: “The Best Website – Champion of Champions” for two consecutive years and “Outstanding Website for Capital Market Trading” for four consecutive years in the prestigious "WebiAwards" annual competition. Leumi operates online via its general website, its capital market trading website, Leumi Trade and its blog, Leumi Blog. At present, nearly 45% of all total banking transactions and 70% of securities’ transactions made by Leumi customers are executed via the Bank’s digital channels. The prize will be awarded to Leumi's representatives at a ceremony which is to be held in New York in November 2010. GLOBAL FINANCE 11 Leumi’s Overseas Banking Subsidiaries Leumi with You Throughout the World Today, when financial markets throughout the world know no boundaries, Leumi provides a range of global financial services through its overseas banking subsidiaries in addition to its operations in Israel. These subsidiaries, incorporated as local banks within the Leumi Group, are under the jurisdiction of local authorities and serve its customers as a globally renowned and reliable organization: the Leumi Group. The Leumi Group’s local banks are located at the world’s financial capitals including London, New York, Los Angeles, Palo Alto, Chicago, Zurich, Geneva and Luxembourg. Leumi USA: 12 Flexibility is the name of the game in international banking. Leumi USA’s familiarity with the U.S. economic environment, combined with its professionalism and dedicated personal service, can assist you in realizing your financial objectives. Leumi USA was established in 1968 and currently has 11 branches across four states throughout the USA: New York, California, Florida and Illinois. The largest of the Leumi Group’s subsidiaries, it provides commercial and private banking services to U.S. and international clients. Leumi USA has a dealing room and a wholly owned brokerage company called Leumi Investment Services Inc. which executes capital market transactions for customers. The bank is under the jurisdiction of U.S. authorities and is a member of the FDIC. Leumi UK: Bank Leumi (UK) is the largest Israeli-owned bank in Great Britain offering a full range of banking facilities to both commercial customers and private clients. Operating in the UK since 1902, Leumi UK has over a century’s experience and intimate knowledge of UK and European financial markets when advising its customers. From its headquarters in London, Europe's leading financial center, Bank Leumi (UK) offers a comprehensive range of commercial, general and private banking services. The Bank’s services are further enhanced by Bank Leumi (Jersey) and Leumi Overseas Trust Corporation. These subsidiaries offer advanced off-shore banking, family office and fiduciary services in a secure environment and with an established reputation for effective tax planning, attractive interest rates and investment products. Leumi ABL specializes in providing invoice discounting and factoring facilities which allow corporate customers to raise finance against receivables. This is an effective addition to the Bank’s range of commercial lending services. Leumi Switzerland: A corporate or institutional investment portfolio requires personal attention, unique and creative solutions. Leumi Switzerland presents a comprehensive a global vision that integrates complex strategies and banking investment products with experience, high Swiss standards and private banking's personal attention. Leumi Switzerland, a private bank, was established in 1953. It provides diverse banking services to international customers. Leumi Switzerland has branches in Zurich and Geneva, and operates representative offices in Israel and Hungary. The bank is subject to Swiss banking laws and the Articles of Association of Swiss banks. Leumi Switzerland invites you to enjoy the advantages of the Swiss banking system combined with the Leumi personal and professional service. A real business opportunity for customers with complex financial requirements and little free time. Leumi Luxembourg: Characterized by internationally oriented banking services and a deep-seated banking secrecy, Luxembourg is a small but powerful financial center located at the hub of the European Union. A major part of its economy is based on the banking sector and it is the home the European Union’s European Investment Bank (EIB). Leumi Luxembourg’s banking operations were started in 1995. The bank is subject to the Luxembourg’s banking laws and is monitored by the local regulatory authorities. Leumi Romania: Leumi Romania is the only Israeli bank operating in Romania, implementing highstandard financial solutions in a country that offers a multitude of business options. Leumi Romania’s familiarity with the domestic market creates a convenient and safe setting for opening new banking horizons. Romania’s geographic location and its participation in the European Market have resulted in Leumi establishing Leumi Romania, thus affecting a stable platform for expanding Eastern European operations. Leumi Romania deals in diversified financial operations through 32 branches throughout the country. In addition to all the overseas subsidiaries, Leumi has representational offices dispersed throughout the world, from Australia to Europe, and all the way to Latin America. For more information please contact your Private Banking Team Overseas units Information: Tel: +972-3-5148197, +972-3-5147102 www.bankleumi.com 13 Did You Know? Pomegranate According to Jewish faith, a pomegranate has exactly 613 seeds, equal to the Taryag Mitzvot, 613 Commandments, commanded of Israel in the Torah, a fact that has converted into a symbol of righteousness. In actual fact, the number of seeds differs from pomegranate to pomegranate… When eating a pomegranate on Rosh Hashana, the following blessing is recited: “May it be Thy will that our virtues be as plentiful as [the seeds of] a pomegranate.” Going Further – Bank Leumi (UK) plc* Leumi Private Banking Leumi Jersey Leumi Private Banking is proud to protect and enhance the wealth of its international clients and their families through a comprehensive range of private banking, investment and trust services. Bank Leumi (Jersey) Limited** provides a full range of private banking services for clients who are looking for an offshore location with security, Going Further – Bank Leumi (UK) confidentiality and in plc* a stable, reputable environment. We have an We welcome new clients. Leumi Private Banking Banking Services Leumi Private Banking is proud to protect and enhance the wealth of its We offer a full range banking services major currencies, international clients andof their families throughina all comprehensive range accept deposits for investment sums of £50,000 and services. above (or equivalent in other of private banking, and trust currencies), and provide payment services, cheque books and charge We welcome new clients. cards. Banking Services Investment We offer a services full range of banking services in all major currencies, For sums of £250,000 and (orand equivalent other currencies) accept deposits for sums of above £50,000 above (orinequivalent in other we offer both Execution Onlycheque Services. Weand cancharge offer currencies), andAdvisory provide and payment services, books investment advice on fund choice and also asset allocation and portfolio cards. valuations in all the major currencies. Invested cash can be held in the Investment services currency of your choice. For sums of £250,000 and above (or equivalent in other currencies) we offerPlanning both Advisory andand Execution Only Services. We can offer Wealth Solutions Fiduciary Services investment advice on fundand choice and also asset allocation portfolio We structure, establish administer trusts, private and investment valuations in all the major currencies. Invested cash can be held in the companies in various locations, and foundations, through currency of registered your choice. our subsidiary in Jersey. Wealth Planning Solutions and Fiduciary Services Treasury and Dealing Services We structure, establish and administer trusts, private investment companies in various locations, foundations,with through Our Private registered Banking Relationship Managers,and in conjunction our our subsidiary Jersey. Dealing Room,inare able to offer a full dealing service and provide you with the latest market information. In addition they can offer a range of Treasuryfuture and Dealing Services options, and derivative strategies for sophisticated investors. Our Private Banking Relationship Managers, in conjunction with our Dealing Room, are able to offer a full dealing service and provide you with the latest market information. In addition they can offer a range of Foreign options, Exchange future and Services derivative strategies for sophisticated investors. We offer immediate competitive pricing in all major currencies, covering spot and forward periods and swaps trades. We offer access to a range Foreign Exchange Services of derivative instruments as investments, or for protection against We offer exchange, immediateand competitive pricing all major currencies, covering interest, equity risk. Ourin treasury team is positioned to spot and forward periods and swaps trades. We offer access to a range facilitate timely execution. of derivative instruments as investments, or for protection against interest, exchange, and equity risk. Our treasury team is positioned to Lending facilitate timely execution. We provide lending facilities against portfolios of securities, bank guarantees, UK properties, cash deposit, and on a back-to-back basis (a Lending We provide lending facilities portfolios of jurisdiction). securities, bank loan backed by a deposit held inagainst the same or different guarantees, UK properties, cash deposit, and on a back-to-back basis (a loan backed by a deposit held in the same or different jurisdiction). Executive Mortgages We offer a flexible five-year, interest only mortgage with a multi-currency Executive Mortgages option intended UK and interest expatriate high net worth individuals for the We offer a flexiblefor five-year, only mortgage with a multi-currency purchase of theirfor residential property in thenet UK.worth individuals for the option intended UK and expatriate high purchase of their residential property in the UK. *Bank Leumi (UK) plc is authorised and regulated by the Financial *Bank Leumi (UK) plc is authorised and regulated by the Financial Services Authority. Services Authority. Leumi Leumi Private Private Banking Banking 14 Bank Bank Leumi Leumi (UK) (UK) plc plc 020 020 7907 7907 8008 8008 [email protected] [email protected] www.bankleumi.co.uk www.bankleumi.co.uk experienced team who are able to provide a flexible and focused approach to meeting individual client›s needs. Leumi Jersey Additional servicesLimited** available froma full ourrange offices in Jersey: Bank Leumi (Jersey) provides of private banking services for Leumi clients (Jersey) who are looking From Bank Limitedfor an offshore location with security, confidentiality and in a stable, reputable environment. We have an Banking for Non-Domiciliaries experienced team who are able to provide a flexible and focused We routinely accounts where capital and income are segregated. approach toprovide meeting individual client›s needs. This, combined with our attractive interest rate, should prove to be Additionalbeneficial servicesto clients available from ourdomiciled offices but in resident Jersey: particularly who are not UK there. may Leumi also be(Jersey) attractive in other circumstances. FromItBank Limited Banking for Non-Domiciliaries Offshore Custody We routinely provide accounts where capital and income are segregated. We able to with provide custody arrangements This,are combined our offshore attractiveglobal interest rate, should prove tofor be trusts, companies andto individuals, whose planning include such particularly beneficial clients who are not UK domiciled but resident requirements. there. It may also be attractive in other circumstances. OffshoreExecutive Custody Mortgages Offshore We product are ableis to provide offshore custody arrangements for This most applicable for UKglobal residents who are not domiciled trusts, companies and individuals, include such for tax purposes in the UK and who havewhose foreign planning earnings. These clients requirements. may purchase residential or investment property in the UK using a Bank Leumi (Jersey) Limited flexible five year, interest only mortgage with a Offshore Executive Mortgages This product isoption. most applicable for UK residents who are not domiciled multi-currency for tax purposes in the UK and who have foreign earnings. These clients From Leumi Overseas Trust Corporation Limited*** may purchase residential or investment property in the UK using a Bank Fiduciary Services Leumi (Jersey) Limited flexible five year, interest only mortgage with a multi-currency option. The formation and administration of Trusts, Foundations and Companies isFrom at the core Overseas of our service. the Limited*** goal is to is to provide an Leumi Trust Whether Corporation orderly transfer of assets to future generations, to maximise returns Fiduciary Services by within a tax-efficientofstructure, or any other aspect of Theinvesting formation and administration Trusts, Foundations and Companies international planning, we can Whether assist in the is at the core of our service. theestablishing goal is to isand to managing provide an orderly of assets to vehicle. future generations, to maximise returns the mosttransfer appropriate holding by investing within a tax-efficient structure, or any other aspect of Family Office planning, Services we can assist in the establishing and managing international The having oneholding overallvehicle. focal point for many areas of planning the idea mostof appropriate and investment is appealing to many clients and we are able to provide Family Office Services this service from one office. As an enhancement, we areareas able of to planning provide The idea of having one overall focal point for many Private Trust Company services, whereclients family and members and investment is appealing to many we aremay ablebe to closely provide involved in the trustee decision making – giving an this service from one office. As an enhancement, weelement are ableof tocontrol provide ifPrivate required. Trust Company services, where family members may be closely involved in the trustee decision making – giving an element of control Wealth Planning Solutions if required. Working in conjunction with tax advisors, we can provide a wide range Wealth Planning Solutions of solutions for families or companies looking to efficiently manage Working in conjunction tax advisors, can provide a wide range and protect assets whilstwith planning for thewe future. Wherever there is of solutions for families or companies looking to efficiently manage aand requirement for fiduciary services for from anfuture. experienced team, in ais protect assets whilst planning the Wherever there reputable and stable jurisdiction, we will be able to assist. a requirement for fiduciary services from an experienced team, in a reputable and stable jurisdiction, we will be able to assist. **Bank Leumi (Jersey) Limited is regulated by the Jersey Financial **Bank Leumi (Jersey) Limited is regulated by the Jersey Financial Services Commission. Services Commission. For more information For more informationphone: phone:01534 01534702 702525 525 ***Leumi ***LeumiOverseas OverseasTrust TrustCorporation CorporationLimited Limitedisisregulated regulatedby bythe the Jersey JerseyFinancial FinancialServices ServicesCommission. Commission. Formore moreinformation informationphone: phone:01534 01534702 702500 500 For [email protected] [email protected] www.leumijersey.com www.leumijersey.com The data contained in and attached to this message has been prepared given the research, knowledge and investment views of Bank Leumi le-Israel BM or The data contained in and attached thisdata message hasofbeen given the research, and investment views Leumi le-Israel BM or on advice from the research facilitiestoand sources thirdprepared parties. It is intended solelyknowledge for information purposes and notof asBank an invitation to participate on advice from the research facilities and data parties. Itbasis is intended solely for information purposes and not as ancan invitation to with participate in any particular trading strategy. It should notsources be usedofasthird the primary for trading decisions. No representation or warranty be given respect to any the particular accuracy or completeness the information herein. in trading strategy. of It should not be used as the primary basis for trading decisions. No representation or warranty can be given with respect This documentation does not constitute a recommendation to the accuracy or completeness of the information herein. or invitation to buy, or the solicitation of an offer to sell any product, security, note or instrument. There may be significant risksconstitute associated with any product, or instrument described but notsecurity, limitednote to interest rate risk, This documentation does not a recommendation orsecurity, invitationnote to buy, or the solicitation of anherein offer toincluding, sell any product, or instrument. price risk, risk and credit risk. Thewith valueany of investments can fall as well as rise anddescribed an investor may not get back original invested. Any There mayliquidity be significant risks associated product, security, note or instrument herein including, butthe not limitedamount to interest rate risk, exposure to foreign currencies may also cause the value of an investment to fluctuate. Past performance is not necessarily indicative of future results. price risk, risk andfinancial credit risk. The value investments caninfall as wellofasany risetransaction and an investor mayunless not get back theexpressly original amount invested. Any We are notliquidity acting as your adviser or in aof fiduciary capacity respect with you otherwise agreed by us in writing. exposure to foreign may also thetake value of antoinvestment fluctuate. Past performance is not necessarily indicative of future assessment results. Before entering intocurrencies any transaction youcause should steps ensure thattoyou understand the transaction and have made an independent of We not acting as your financial adviser or inlight a fiduciary in respect ofcircumstances, any transactionincluding with you the unless otherwise agreed by us in into writing. the are appropriateness of the transaction in the of yourcapacity own objectives and possible risks expressly and benefits of entering such 4 Before entering into anyalso transaction youfrom should take steps to ensure that you transaction.You should seek advice your own advisers in making thisunderstand assessment.the transaction and have made an independent assessment of Theappropriateness information contained in or attached tolight this message is privileged Theincluding information is intended the use of the individual the of the transaction in the of your own objectivesand andconfidential. circumstances, the possible risksonly and for benefits of entering into suchor 4 of entity named above. If the of thisfrom message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying transaction.You should alsoreader seek advice your own advisers in making this assessment. this communication is strictly received this communication in error, please notify us byfor telephone or the e-mail and delete The information contained in prohibited. or attachedIftoyou thishave message is privileged and confidential. The information is immediately intended only the use of individual or this message. entity named above. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone or e-mail and delete this message. S HANA TO VA Leumi Private Banking wishes you a happy, healthy and prosperous New Year Bank Leumi - Private Banking for International Clients Tel Aviv: Tel: +(972)3-621-7333/7444, Jerusalem: Tel: +(972)2-620-1811 Bank Leumi - Private Banking for Israeli Clients, Tel: +(972)3-514-7207 www.bankleumi.com
