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Citizens Fund (Israel)

הקרן לאזרחי ישראל · Israel · Middle East · Founded 2014 · Savings and future generations fund · Not an IFSWF member

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Focus

Israel: what it invests in

TechnologyFinancial servicesHealthcare and life sciencesIndustrials and manufacturingConsumer and retail
Public equitiesFixed incomePrivate creditPrivate equityCash and money markets

Geography Global

Scale

Israel: how big it is, and on what basis

USD 2.79B
Net assets or equityAs of

In US dollars: about USD 2.79B. Fund reports in US dollars

Return 2025 18.4% (in USD)

Transparency

Israel: what it publishes

9.5 of 10 Band 5 of 5

Published 9 · Partly 1 · Not published 0

Our 10 item score. It measures what is public, not how well a fund is run.

Net assetsS1
USD 2.79B (December 2025)
As of
Return 2025S1
18.4% (in USD)
As of
Return since 2022S1
13.6% a year
As of
Deposits 2025S1
USD 350.7M
As of
EquitiesS1
69.3%
As of
Private markets targetS1
Up to 15%
As of
Transparency scoreS1
9.5 of 10
As of

At a glance. Israel's sovereign wealth fund saves the state's levies on natural gas and other resource profits and invests them abroad, in foreign currency only, over a 40 to 50 year horizon. Net assets were USD 2.79 billion at end 2025 after an 18.4 percent dollar return. A Bank of Israel department runs a 70/30 global equity and corporate bond portfolio and is adding private markets. S1

Key points

  • Net assets USD 2,790.1 million at 31 December 2025, up from USD 2,079.6 million. S1
  • Returned 18.4 percent in US dollars in 2025 and 13.6 percent a year since inception. S1
  • 2025 flows: USD 350.7 million deposited, USD 411.5 million of gains and USD 51.7 million paid to the state budget. S1
  • Benchmark of 70 percent global equities and 30 percent global investment-grade corporate bonds since 2024. S1
  • Private markets target of up to 15 percent, built gradually; about 1 percent at end 2025. S1
  • By law it invests only outside Israel and only in foreign currency. S1

Interesting facts

  • The law only took effect after cumulative levy revenue hit NIS 1 billion, eight years after it passed. S1
  • A strong shekel cut its 2025 return in shekel terms to about 3.8 percent. S3
  • It has chosen, for now, not to invest directly in oil and gas companies. S1

Mandate and goals

Manage the state's natural resource levy revenue with a long-term view so the fund lasts for generations, avoiding Dutch disease and sharing the wealth fairly between generations. S1

  • Preserve and grow wealth over a 40 to 50 year horizon. S1
  • Pay a yearly allocation for social, economic and education goals. S1
  • Shield the domestic economy by investing only abroad. S1
  • Spending rule: Annual allocation to the state budget at rates set in the law, used for purposes approved by the Knesset in the budget law S1

How it invests

IndustriesTechnology, Financial services, Healthcare and life sciences, Industrials and manufacturing, Consumer and retail. Sector agnostic S1
Asset classesPublic equities, Fixed income, Private credit, Private equity, Cash and money markets S1
StagesPublic markets, Credit, Buyout S1
GeographyGlobal. Equities track the global index with a slight Europe underweight and emerging markets overweight; debt overweights the US S1
Direct / through funds / co-investNo / Yes / No S1
Ticket sizeNo ticket size is published. S1
External managersExternal managers used; names not published S1
Co-investment programmeCooperation with international bodies on the private markets set-up, unnamed S1

Asset mix: Equities 69.3%, Investment-grade corporate debt 13.2%, Sub-investment-grade corporate debt 8.8%, Government debt 8.1%, Cash 0.6% (as of 2025-12-31) S1

Published criteria

  • Only foreign assets in foreign currency. S1
  • Measured against a 70 percent MSCI ACWI, 30 percent global corporate bond benchmark. S1
  • No direct investment in oil and gas companies at this stage. S1

Past investments

YearInvestmentTypeSectorStageAmount
2025Private debt and private equity programme. First private markets commitments under a multi-year plan to reach up to 15 percent. S1Fund commitmentMulti-sectorCreditAbout 1% of assets
2025State budget allocation. About NIS 233M for social, economic and education uses. S1 S3State asset transferFinancial servicesNot statedUSD 51.7M
2024Global equity and corporate bond portfolio. Moved to a 70/30 benchmark with active external managers. S1Direct investmentMulti-sectorPublic marketsUSD 2.79B at end 2025
2022Initial ETF portfolio. 60 percent developed equities, 36.5 percent corporate bonds, 3.5 percent cash, held through ETFs. S1Fund commitmentMulti-sectorPublic marketsNot published

Case studies

From ETFs to a full global portfolio S1

  • What: The fund began with passive ETFs, then set a 70/30 benchmark in 2024 and a private markets plan in 2025.
  • When: 2022 to 2025
  • Size: USD 2.79B
  • Why: To capture higher long-run returns over a 40 to 50 year horizon.
  • Outcome: Return of 13.6 percent a year since inception.

A strong dollar year in 2025 S1 S3

  • What: Equities rose to 69.3 percent and the fund returned 18.4 percent in dollars.
  • When: 2025
  • Size: USD 411.5M of gains
  • Why: The fund measures performance in US dollars.
  • Outcome: Net assets grew by about USD 710M, including deposits.

Investment process

The council sets principles; a five-member investment committee sets investment policy; a Bank of Israel department implements it. S1

CommitteeRole
Fund CouncilChaired by the Finance Minister; sets principles and appoints key officers S1
Investment CommitteeFive members, including two public representatives; sets investment policy S1
Audit CommitteeThree council members S1
  1. Levy revenue is deposited. S1
  2. Investment committee sets the benchmark and allocation. S1
  3. Bank of Israel department invests via external managers and funds. S1
  4. Quarterly and annual statements go to the government and Knesset. S1 S4

How to approach: No process for outside proposals is published. S1

Size and returns

  • Headline size: USD 2.79B (Net assets or equity, as of 2025-12-31) S1
  • In US dollars: about USD 2.79B. Fund reports in US dollars
  • In shekels, December 2025: NIS 8.67B (Net assets or equity, as of 2026-04) S3
  • Return, 2025: 18.4 percent (15.4 percent real) S1
  • Return, Since inception (June 2022) to December 2025: 13.6 percent a year S1
  • Size over time (USD billion): 2024 2.08, 2025 2.79 S1

Leadership

NameTitleSince
Lena KropalnikHead of the fund management department, Bank of Israel S12023-04
Bezalel SmotrichCouncil chair; Minister of Finance S1Not published
Barry TuffActing chair, Investment Committee; council member S12026
Andrew AbirCouncil member; Deputy Governor, Bank of Israel S1Not published
Roni HellmanCouncil member S1Not published
Amir BarkanCouncil member, Prime Minister's Office S1Not published
Michal Abadi-BoyanjoCouncil member, Accountant General's representative S12026

Governance and transparency

  • Legal basis: Citizens of Israel Fund Law, 2014; Law on Taxation of Profits from Natural Resources, 2011 S1
  • Oversight: Government and the Knesset oversight committee S1 S4
  • Auditor: Kost Forer Gabbay & Kasierer (EY Israel), under IPSAS S1
  • Public representatives are chosen through a search committee. S1
  • Knesset researchers publish an analysis of the statements. S5

Transparency score: 9.5 of 10 (band 5 of 5). Our own 10-item rubric; see the methodology page.

  • Published: total assets, annual return, long-term returns, asset allocation, geographic or sector split, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S1
  • Partly published: holdings or deal list. S1

History

DateEvent
2011Natural resource profits tax law. S1
2014Citizens of Israel Fund Law. S1
2015Levy extended to other resources. S1
2022-01First council meeting. S1
2022-06Operations begin. S1
2023-04Lena Kropalnik appointed head. S1
202470/30 benchmark approved. S1
2025Private markets plan launched. S1
2026-04-152025 annual report published. S6
2026-05-26Knesset committee reviews 2025 statements. S4

For family offices

The fund invests only abroad through external managers and funds, and is building a private debt and equity book. Global managers are the likely counterparties; there is no process for direct proposals. S1

Reports

Common questions

How big is the fund?

USD 2.79 billion at 31 December 2025, about NIS 8.7 billion. S1 S3

Who manages it?

A Bank of Israel department led by Lena Kropalnik, under a council chaired by the Finance Minister. S1

Where does the money come from?

Levies on profits from oil, gas and other natural resources. S1

Can it invest in Israel?

No. By law it invests only outside Israel and in foreign currency. S1

All sovereign wealth funds in Middle East · All savings and future generations funds · All funds in Israel

Sources

  1. S1Citizens of Israel Fund, Annual Report 2025 (Hebrew)
  2. S2IFSWF, members list
  3. S3Globes, Strong shekel wipes out sovereign wealth fund returns
  4. S4Knesset, committee press release, 26 May 2026
  5. S5Knesset Research and Information Center, analysis of the fund's 2025 statements
  6. S6Bank of Israel, press release 15 April 2026

Disclaimer

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